On 11th February 2011, IRDA issued circular to Insurers for new guidelines on Individual Agents, which will come into effect from 1st July, 2011.
What are new changes?
1- Relatives of employees of Insurance Companies not to be engaged as Agents
Relatives of employees of insurance companies shall not be engaged as agents by the insurers. For this purpose, the definition of “relative” shall include spouse, sisters, brothers, parents, sons, daughters -in-law, daughters and sons-in-law.
2- Insurers to lay down minimum Business Requirements for Agents
All insurers are required to lay down Minimum Business Requirements for agents and monitor the performance of agents in this regard as often as it is required.
3- Insurers to Communicate and Monitor
Insurers are required to communicate the above guidelines to their agents and take a confirmation from the agents regarding their having received and understood them. Insurers shall monitor the compliance of these guidelines by agents through appropriate software.
Source – irda.gov.in