Corporate Agent in India

Corporate Agent in India: IRDAI’s issued
Code of Conduct

Every Licensed Corporate Agent must abide by the code of conduct specified below:

Responsibilities of a Corporate Agent

Commission

A licensed Corporate Agent must be responsible for all acts of omission as well as the
commission of its corporate insurance executive and every specified person.

Training

A licensed Corporate Agent must ensure that the corporate insurance executive, as well
as all the specified persons, are adequately trained, skilled, and knowledgeable in the
insurance products they market.

Clear Communication

A Corporate Agent must ensure that the corporate insurance executive, as well as the
specified person, does not make to the prospect any misrepresentation of policy
benefits and returns available under the policy.

Delivery

A Corporate Agent must ensure that no prospect is forced to buy an insurance product.

Advice

A CA licensed holder must give adequate pre-sales and post-sales advice to the
insured regarding the insurance product.

Support

A CA license holder must extend all possible help and cooperation to an insured in
completing all formalities and documentation in case of a claim.

Delegation

Also, a licensed Corporate Agent must give due publicity to the fact that the corporate
agent does not underwrite the risk or act as an insurer.

Agreement with the Insured

A licensed Corporate Agent must enter into service level agreements with the insurer in
which they both articulate their respective duties and responsibilities.

Corporate Agent's Conduct with the Authority

Every corporate agent or a corporate insurance executive, or a specified person must
also follow the code of conduct specified below:

Representation

Each of them must identify himself and the insurance company he is a representative
of.

Disclosure

Each one of them must disclose his license or certificate to the prospect on demand.

Information Dissemination

Each of them must disseminate the requisite information regarding insurance products
his insurer offers. Also, they must consider the prospect's needs while recommending a
specific insurance plan.

Each one of them must disclose the scales of commission in respect of the insurance
product offered for sale if asked by the prospect.

Premium

Each one of them must indicate the premium that the insurer charges for the insurance
product offered for sale.

Proposal by the Insurers

Each one of them must explain the nature of information required to the prospect by the
insurer. Also, they must explain the importance of disclosure of material information in
the purchase of an insurance contract.

Warning to the Insurers

Each one of them must bring to the notice of the insurer any adverse habits or income
inconsistency of the prospect. Also, the notice must be in the form of a report (called
“Insurance Agent’s Confidential Report”). This report must be along with every proposal
submitted to the insurer. Lastly, Any material fact may adversely affect the insurer's
underwriting decision. The decisions can be regarding the acceptance of the bid by
making all reasonable inquiries about the prospect.

Result

Each of them must promptly inform the prospect about the insurer's acceptance or
rejection of the proposal.

Requisite Documentation

Each one of them must obtain the requisite documents when filing the proposal form
with the insurer. Also, the CA must submit the other documents subsequently asked for
by the insurer for completion of the proposal.

Assistance

Each one of them must render necessary assistance to either the policyholders or the
claimants and beneficiaries in complying with the requirements for settlement of claims
by the insurer;

Guiding the Policyholder

Each of them must advise every policyholder to effect nomination or assignment or
change of address or exercise of options, as the case may be, and finally offer
necessary assistance on this behalf, wherever necessary.

For original post source: https://community.wongcw.com/blogs/235161/Corporate-
Agent-in-India-IRDAI-s-issued-Code-of-Conduct