Point of Sales Person Archives - Tax Heal

IRDA modified Guidelines on Pont of Sales Person – Non-Life and Health

CA Satbir Singh — Fri, 17 Mar 2017 05:44:38 +0000

IRDA Modifies Guidelines on Point of Sales Person: Non-Life & Health

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India.
Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334
E-mail : irda@irda.gov.in Web.: www.irda.gov.in

Ref: IRDA/INT/GDL/PSP/058/031 2017 16^th March, 2017

To all General and Health Insurers

Reference is drawn to Guidelines on Point of Sales Person – Non-Life and Health dated 26^th October, 2015 facilitating insurance companies and insurance intermediaries to appoint point of sales person to solicit and market largely pre-underwritten products.

Attention is drawn to IRDA circular no IRDA/ Life/ ORD/ GLD/ 223/ 2017 dated 7^th February, 2017 on the modification to Guidelines on Point of Salesperson – Life Insurance wherein based on the feedback of insurers and taking into account the practical ease for insurer/ intermediaries, the condition of training from and passing of NIELIT examination is being dispensed with. Similar requests have been received from the non-life insurers.

Given that the products allowed under the Non-Life and Health Insurance are largely pre-underwritten based on the information provided by the prospect and the insurance policy is automatically generated by the system it would be in order to bring parity with the approach followed in case of life insurance.

In light of the above the following modifications are undertaken to Guidelines on Pont of Sales Person – Non-Life and Health dated 26^th October, 2015:

1. The General insurer including stand-alone health insurer or insurance intermediary proposing to engage the POS person shall:

a. Ensure that the applicant is not engaged with any other insurer or insurance intermediary by cross-checking with the database housed in Insurance Information Bureau (IIB), Hyderabad.

b. Conduct an in-house training of fifteen (15) hours for the candidate

c. Conduct an examination after successful completion of the training

d. Issue a certificate to the candidate who has passed the examination in the format attached to the circular.

e. Engage the successful candidate as POS person by entering into a written agreement, specifying the terms and conditions.

f. Upload the details in the IIB date-base at the end of the day.

g. Maintain a proper record of training and examination for atleast five (5) years from the end of financial year in which these are conducted which shall be made available to the inspecting official of the Authority during on-site inspection.

The Model Syllabus for training of “POS Person – General Insurance including stand alone health insurance” is herewith attached in Annexure – I which may include the features of various POS products designed by the Insurer from time to time and may be modified and developed according to the changing need of the insurers and intermediaries.

The circular is effective from 1^st April, 2017.

The other terms and conditions of the Guidelines will remain unchanged.

P.J. Joseph

Member (Non-Life)

———————

Annexure – I

Model Syllabus

Module 1 – Introduction to Insurance

Concept of Insurance
Purpose and need of insurance
Concepts of risk, peril and hazard

Module 2 – Indian Insurance Market

IRDAI
Insurers
Insurance Intermediaries
Insurance Agents
Point of Sales Persons

Module 3 – Principles and Practise of Insurance

Offer (Proposal) and Acceptance
Consideration (Premium)
Insurable Interest – Utmost Good Faith – Indemnity – Contribution and Subrogation -Proximate Cause
Proposal Form – Sales Literature – Payment of premium – Section 64VB of Insurance Act -Premium Receipt – Insurance Policy – Endorsements – Warranties – Section 41 of Insurance Act (Rebating)
Intimation of claim – appointment of surveyor – survey report – assessment of loss – settlement of loss – discharge voucher – payment of claim

Module 4 – Point of Sale – General Insurance Products Including Health Insurance

POS – General Insurance including Stand-Alone Health Insurance
POS – Categories of POS Products and Salient Features of POS Products

Module 5 – Miscellaneous

Grievance Redressal Mechanism
Protection of Policyholders Interests Regulations
AML/ KYC norms
Do’s and Don’t’s for POS Persons

On the Insurer/ Insurance Intermediary letterhead

Letter

Date:

Photo

Mr./ Ms ……………………

Address

This is in reference to the application made by you for enrolling yourself to act as Point of Sale Person.

This is to confirm that you have successfully completed the prescribed training and have also passed the examination specified for Point of Sales examination conducted by …………………… (name of insurer/ insurance intermediary) under the Guidelines on Point of Sales Person for Non-life and Health Insurers. Your personal details are as under:

Aadhaar No:

This letter authorizes you to act as Point of Sales Person for …………….. (name of the insurer/ insurance intermediary) to market products categorized and identified under the Guidelines only.

In case you wish to work for another company, you are required to obtain a fresh letter from the new insurer/ insurance intermediary in order to act as Point of Sales Person for that entity.

Yours truly

Authorised Signatory

Point of Sales Person for Soliciting and marketing insurance policies : IRDA Guidlines

CA Satbir Singh — Wed, 28 Oct 2015 14:15:28 +0000

GUIDELINES ON POINT OF SALES PERSON

CIRCULAR NO. IRDA/INT/GDL/ORD/183/10/2015, DATED 26-10-2015

The Authority has observed that there are number of persons who are involved in undertaking simple and routine activities pertaining to solicitation and marketing of insurance policies. For e.g. bulk of products in motor insurance, travel insurance, personal accident insurance, etc. require very little underwriting. These happen to be largely pre-underwritten products wherein based on the information provided by the prospect, the insurance policy is automatically generated by the system. The intervention required for such a product is minimal and the training and examination for such persons could be of a lesser degree.

In order to facilitate the growth of insurance business in the country and to enhance insurance penetration and insurance density, the Authority as part of its developmental agenda issues the following guidelines on “Point of Sales Persons”.

I. Scope and Applicability of these guidelines

These guidelines shall apply to “Point of Sales Person” and those engaging “Point of Sales Person”.

II. Definition

a.		“Act” means the Insurance Act, 1938
b.		“Authority” means Insurance regulatory and Development Authority of India established under section 3 of the IRDAI Act, 1999.
c.		“NIELIT” means National Institute of Electronics and Information Technology which is an autonomous scientific society of Department of Electronics and Information Technology, Government of India and is designated as the training and examining body for the “Point of Sales Persons”.
d.		“Point of Sales Person” means an individual who possess the minimum qualifications, has undergone training and passed the examination as specified in these guidelines and solicits and markets only certain pre-underwritten products approved by the Authority.

III. Point of Sales Person

There shall be two types of persons who shall solicit and market insurance policies namely:

a.		insurance agent or specified persons of corporate agent or broker trained persons for soliciting and marketing insurance policies or insurance sales persons of Insurance Marketing Firm or rural authorised persons of CSC-SPV or authorised person of web aggregators who can solicit and market all types of insurance policies.
b.		“Point of Sales Person” who can solicit and market only certain pre-underwritten products approved by the Authority.

2.		Every “Point of Sales Person” shall be identified by his Aadhaar Card Number or his PAN Card.
3.		The persons soliciting and marketing such pre-underwritten products approved by the Authority shall be called as “Point of Sales Person”.
4.		The “Point of Sales Person” shall be atleast 10th pass.
5.		He shall be sponsored to NIELIT, by the insurance company or the insurance intermediary with whom he shall work, for undergoing online training specified for “Point of Sales Person”.
6.		The fees for the online training and examination shall not exceed Rs five hundred which will be paid to NIELIT by either the insurance company or the insurance intermediary who is sponsoring the individual.
7.		The training module will be hosted on NIELIT website as approved by the Authority.
8.		He shall appear in the online examination conducted by NIELIT who shall be the examining body.
9.		On successful passing the examination, he will be issued a letter by NIELIT certifying him to be a “Point of Sales Person”.

IV. Appointment of Point of Sales Person

1.		An insurance company or an insurance intermediary can engage a “Point of Sales Person” to represent him.
2.		A “Point of Sales Person” can represent an insurance company or an insurance intermediary.

V. Products solicited and marketed by “Point of Sales Person”

The “Point of Sales Person” can sell only the following pre-underwritten product.

a.		Motor Comprehensive Insurance Package Policy for Two-wheeler, private car and commercial vehicles.
b.		Third party liability (Act only) Policy for Two-wheeler, private car and commercial vehicles.
c.		Personal Accident Policy
d.		Travel Insurance Policy
e.		Home Insurance Policy
f.		Any other Policy specifically approved by the Authority

2.		Every policy sold through the “Point of Sales Person” shall be separately identified and pre-fixed by the name “POS – (name of product)”.
3.		The insurance company shall file the product with the Authority under the file use guidelines for information.

VI. Tagging of Proposal Form and Insurance Policy to Point of Sales Person

1.		Every proposal form, in paper or in paperless form, insurance policy and other related documents shall carry provision to record the Aadhaar card number of the PAN card number in order to tag the policy to the “Point of Sales Person” who is selling the said policy.
2.		The insurance company shall be responsible to record the Aadhaar card number or the PAN card number of the “Point of Sales Person” in the proposal form and insurance policy. The insurance company shall be responsible for the conduct of the “Point of Sales Person” representing him and any misconduct on part of the Point of Sales Person shall make it liable to a penalty as per provisions of section 102 of the Act.
3.		For sales effected through the insurance intermediary, the insurance intermediary shall record the Aadhaar card number or the PAN card number of the “Point of Sales Person” in the proposal form and require insurance company to do the same in the insurance policy. The insurance intermediary shall be responsible for the conduct of the “Point of Sales Person” engaged by it and any misconduct on part of the Point of Sales Person shall make it liable to a penalty as per provisions of section 102 of the Act.
4.		One of the factors that shall be considered while renewing the certificate of registration of the insurance intermediary, shall be the conduct of the “Point of Sales Person” on the rolls of insurance intermediary.

VII. Compliance

1.		The insurance companies and insurance intermediaries shall make suitable changes in their policy administration system to capture the Aadhaar Card number or the PAN card number details of the “Point of Sales Person”
2.		The “Point of Sales Person” when engaged by the insurer shall place business with that insurer subject to compliance of rules and procedures of that insurance company
3.		The Authority shall specify the format and the manner of maintaining returns which the insurance company and the insurance intermediary shall maintain in electronic form which can be accessed by the Authority on a remote location basis. The formats shall give the number of policies sold and the premium collected by the “Point of Sales Person” on a monthly basis.