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In a recent amendment, IRDAI has asked insurance intermediaries such as brokers and insurance marketing firms to maintain records of clients’ interactions, commission income and complaints.
Also, they will have to keep business details like customer profile, employee specific details, legal information and phone numbers of their clients handy.
The insurance regulator said that insurance intermediaries should be able to present this data to the regulator when asked.
IRDAI has also asked insurance companies to maintain records of insurance intermediaries like business performance numbers, license numbers and information on salaried workers of the intermediary, among other things.
All these records must be kept for at least 10 years or as legally required, starting from the last transaction date or the policy's expiry date, whichever is later, clarified IRDAI.
Here are the key details that all insurance intermediaries must keep:
- Intermediaries must maintain complete records of all proposals, policies and renewals, including proposal numbers, customer details, premium payments and policy dates
- Records should include renewal information such as due dates, intimation dates sent to customers and receipt of premium
- Intermediaries must have clear guidelines for operations and ensure their employees are properly trained and certified
- Claims records must detail policy numbers, claim amounts, supporting documents, survey reports, and payment information. For third-party administrator claims, details of hospital networks and cashless processing are required
- Employee records must include identification numbers, roles, salaries, training certificates, and business generation metrics, along with their license or registration details
- Organization structure documentation should cover beneficial owners, affiliates, group companies, and subsidiaries
- Intermediaries must record all complaints, including the customer’s details, the issue raised, how it was resolved, and when it was resolved
- Financial records must track all commissions, rewards, investments, and other transactions, supported by proper documentation
- Maintain records of all agreements with insurers, service providers, and partners, including terms and compliance details
- Prepare a standard operating manuals for all procedures
- Intermediaries must document all phone numbers used for insurance solicitation, along with their bills and usage records
- Keep comprehensive records of office locations, including new openings, closures and relocations
- Maintain attendance records for all employees across different office locations
Here's what insurers will have to maintain about their intermediaries:
- Full details of intermediaries like their registration, license numbers, appointment dates and any terminations
- Records of the business done by intermediaries like policies sold, premium collected and commissions paid
- Agreements with intermediaries, including cost-benefit reviews and checks on their reliability (due diligence)
- Details of all payments made to intermediaries like commissions, bonuses, or other rewards. Document all training certifications and qualifications of intermediary staff handling insurance business
- Maintain copies of appointment letters and records of salaried field workers associated with intermediaries
These records must be readily available for regulatory inspection and can be maintained in electronic form with appropriate security measures in place.