New Regulations For Corporate Agents By Mid-Oct

New Delhi, September 25: | Updated: Sep 26 2002, 05:30am hrs
The insurance watchdog is coming out with a slew of regulations and amendments by mid-October. It also hopes to issue the first clutch of broking licences by the middle of November.

The regulations would pertain to corporate agents (including bancassurance), brokers, and definitions of rural and informal sectors, enablement of electronic payment of premium and distribution of actuarial surplus between the policy-holders and shareholders of life insurance companies. Irda chairman N Rangachary said this on the sidelines of a seminar on insurance organised here on Wednesday by the Federation of Indian Chambers of Commerce and Industry (Ficci).

The regulator has decided to revert to the interpretation of rural sector used prior to its regulations. Now, insurers can again take for reference the Census figures in meeting their rural obligations.

Life Insurance Corporation chairman SB Mathur later said the change would involve reworking their calculations, etc, but said that it would facilitate selling of rural insurance.

However, he could not say right away if the percentage of rural policies sold back would go back to the 35-per cent plus level under the revised definition.

The informal sector would include those earners whose income could not be defined purely in terms of employees and employers, like those engaged in small home-based manufacturing.

As for brokers, Mr Rangachary in his address earlier announced that applications from brokers would be invited around the middle of October and the they could be acted upon within a month.

Bancassurance regulations would form of the corporate agency regulations, he added.