Press Information Bureau
Government of India
Ministry of Finance
24-July-2015 16:46 IST
Government of India
Ministry of Finance
24-July-2015 16:46 IST
Code of Conduct for Insurance Agents
The Insurance Regulatory and Development Authority of India (IRDAI) has
informed that as per Sec 42(3)(h) of Insurance Act, 1938 amended vide
Insurance Laws (Amendment) Act, 2015, an agent who has violated the code
of conduct as may be specified by the regulations will be disqualified
to act as an Agent. Therefore, the Authority has notified Guidelines on
Appointment of Insurance Agents, 2015 vide IRDA/AGTS/CIR/GLD/046/03/2015
dated 16th March 2015. In terms of the said guidelines, a code of
conduct for agents has been prescribed with a view to ensure that the
agents act fairly in the process of insurance solicitation and strictly
adhere to the terms and conditions to which their appointment is
subjected to. As per Clause VIII.1) a) v) of Guidelines on Appointment
of Insurance Agents, 2015 the insurance agent has to disclose the scales
of commission in respect of insurance products offered for sale, if
asked by the prospect. This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
