IRDAI may relax the agency license requirement for individuals who wish to distribute plain vanilla insurance policies such as motor third party insurance products.
In the minutes of the meeting released by IRDAI, the Joint Director (Agency Distribution) has recommended that IRDAI should consider relaxing agency norms to facilitate distribution of simple insurance policies such as motor third party policies through agencies like Pollution Check Centres.
IRDAI said, “Provided that the insurance regulator may exempt one or more of the above conditions for such applicants who are to be appointed to distribute specific insurance products having fixed premium and/or benefits such as motor third party insurance. Provided that while making such exemptions, other conditions to be fulfilled, if any, may also be specified by the authority.”
Simple products are those which have standard features and pre-defined benefits. Products such as Pradhan Mantri Bima Yojana and Pradhan Mantri Suraksha Yojana fall in this category.