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The government is likely to introduce Insurance Amendment Bill 2024 in the upcoming parliamentary session. Under this bill, the government has proposed introduction of open architecture model for insurance agents.
The Department of Financial Services, GOI has proposed to omit the clause, which makes it mandatory for insurance agents to work with only one life, one health and one non-life insurer.
If the proposal goes through, insurance agents would be allowed to work with multiple insurance companies.
The proposed regulation says that an insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business. However, the insurance regulator has to ensure that there is no conflict of interest in such an appointment.
Currently, other insurance intermediaries like corporate agents who are largely banks, insurance marketing firms and insurance brokers can have multiple tie ups with insurance companies.
You can submit your comments to the proposal via email at consultation-dfs@gov.in latest by December 10, 2024.
