Relaxation in Agency norms for standalone Health Insurer’s Agents

IRDA (vide letter dated 28th November, 2006; link) allowed Star Health and Allied Insurance Company to avail the services of general insurance agents of other companies. Now this special dispensation is extended to all the Standalone Health Insurance Companies and will be valid till further orders of the Authority.

What it means?
1. The insurance agent who is working for standalone health Insurer’s (e.g. Star Health and Allied Insurance, Apollo Munich and Max Bupa) can also work for another general insurer. This means that he(agent) can work for two general insurers, one of which is a Standalone Health Insurer.
2. The Agent is free to achieve in full the Minimum Business Requirements laid down by at least one of the general insurance companies (either standalone Health Insurance companies or other general insurer).
3. All the Standalone Health Insurance companies who are utilizing the services of general insurance agents of other companies shall maintain a list of such agents and notify their performance to respective general insurers on annual basis to carry out effective monitoring.

As per ‘Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000’
An individual can apply for only one licence which will entitle him to solicit or procure insurance business of any class and to act as an insurance agent for one life insurer, one general insurer, or both.