In a major relief to agents who are looking to float insurance marketing firms (open architecture in insurance distribution space), IRDAI has lifted the cap of two hours training a day for acquiring insurance marketing firm license. Now, agents can undergo training at their will, in terms of number of hours in a day to acquire open architecture license.
IRDAI norms mandate 50-hour training followed by an exam to acquire a license to float insurance marketing firm.
In a circular, IRDAI has said, “The insurance regulator has been receiving requests from various stakeholders to remove the cap on maximum credit hours per day. After due consideration, it has been decided to remove the restriction on credit hours earned per day by the candidate. It is to be noted that the other condition on training of principal officer and insurance sales person shall remain the same.”
Last year in March, IRDAI had introduced a new distribution channel called IMF through which insurance distributors were allowed to tie up with multiple insurers to offer a wider choice to investors.
To start with, such distributors are allowed 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 a distribution business. Initially, the license is 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. Distributors can submit their IMF applications online on imf.irda.gov.in.
As on March 2016, there are 14 insurance marketing firms.
