Insurance Marketing Firm (IMF) has received a lackluster response from individual agents and corporate agents, said T S Vijayan, IRDAI Chairman on the sidelines of 17th CII Insurance Summit held in Mumbai.
Vijayan said that the insurance regulator has received only 4-5 applications from intermediaries to float IMF. He said, “We are evaluating what went wrong and why IMF is not picking up. We have asked insurance companies to give their feedback on this issue in order to remove the bottlenecks.”
Earlier in March, IRDAI 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. To start with, 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 an IMF, subject to respective regulatory approval. Existing insurance agents will have to surrender their agency license and pass an IMF examination.
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.
Earlier, through 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. “
Distributors can submit their IMF applications online on imf.irda.gov.in.