IRDAI has invited applications from distributors to float Insurance Marketing Firm (IMF). Distributors can submit their applications online on imf.irda.gov.in.
In a press release, T S Vijayan, Chairman IRDAI said, “The IMF is an entity registered by the IRDAI to solicit or procure insurance products, to undertake insurance service activities and also to distribute other financial products as specified in the regulations by employing individuals licensed to market, distribute and service such other financial products. “
“This module is expected to minimize the manual intervention and reduce the Turn-around-Time for issuance of Certificate of Registration to prospective IMFs considerably. It is expected to give a fillip to the distribution of insurance products in a cost effective manner to cater to the needs of the insuring public,” he added.
Earlier in March, IRDAI has introduced a new distribution channel called IMF through which insurance distributors are allowed to tie up with multiple insurers so that they can offer a wider choice to investors. Initially, the insurance regulator has allowed such distributors to sell insurance policies of two life, two general and two standalone health insurers. In addition, agents can sell other financial products like mutual funds and pension products by floating the IMF, subject to respective regulatory approval.
Existing insurance agents have to surrender their agency license and pass the examination of IMF. Also, the applicant should have a net worth Rs.10 lakh for floating its distribution business. Initially, the license will be issued for three years which can be renewed 90 days prior to expiry. IMF will be required to possess professional indemnity insurance cover of at least Rs.10 lakh.
Distributors have to cough up a non-refundable fee of Rs.5,000 along with the application form.