IRDA Nod to “India Post” to sell Insurance Policies of Multiple Insurance Companies
The IndiaPost, with its largest distribution network of 1.55 lakh offices, can be effectively utilized now by the insurance players in the country. This has been made possible with the Insurance Regulatory and Development Authority (IRDA) allowing the IndiaPost to sell insurance policies of insurance companies. IRDA permission, however, restricts the number of insurance companies each Postal Circle, can tie up with for selling the insurance policies.
The IndiaPost, with its largest distribution network of 1.55 lakh offices, can be effectively utilized now by the insurance players in the country. This has been made possible with the Insurance Regulatory and Development Authority (IRDA) allowing the IndiaPost to sell insurance policies of insurance companies. IRDA permission, however, restricts the number of insurance companies each Postal Circle, can tie up with for selling the insurance policies.
Under the revised guidelines, the 22 circles of IndiaPost can act as Corporate Agent of 2 life insurance companies, two non life insurance companies, one agricultural insurance company and one stand alone health insurance company.
In its revised guidelines released last week, IRDA said, "Each circle of India post should be treated as a separate unit in order to grant independent corporate agent licence with various insurers. However the Head of 'Circle' may approach IRDA for prior approval of further division in the 'Circle' as separate units, in the case of metropolitan areas, to obtain licence to act as corporate agent, in view of the large population under the circle," according to IRDA. According to IRDA, the head of the circle would be deemed to be the Corporate Insurance Executive (CIE) the chief executive responsible for all insurance agency dealings. "Also, all the permanent employees of the India Post having an educational qualification of 10+2 or equivalent shall be deemed to be complying with the relevant provisions regarding requirements of minimum educational qualification, training and examinations prescribed for 'Specified Persons'.
In this regard, India Post shall take necessary steps to impart required training to its permanent employees to be designated as 'Specified Persons' within a period of one year from commencement of corporate agency, IRDA said. Further, Corporate agency guidelines prevent banks from selling products of two competing firms.
This is a new way of generating revenue as Corporate Agent to the IndianPost.
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