Web Aggregators Web aggregators are insurance intermediary registered with Insurance Regulatory...
In the insurance sector, Insurance Marketing Firm (IMF) is the new type of business and distribution channel. It was formed by one of the insurance committee in 2007. In their operation of work, they are similar to an insurance distribution firm. Insurance Marketing Firm collaborate with insurance companies and market the products. In this article, we shall have a close look at its registration renewal process.
As per the Insurance Regulatory and Development Authority of India (Registration of IMF) Regulations, 2015 IMF is defined as an entity registered by the authority to solicit or procure insurance products, to undertake insurance service activities and to distribute other financial products as mentioned in the regulations through employing the individuals licensed to market, distribute and service other financial products.
The procedure is as follows:
The documentation to be attached for renewal is specified below:
It is to be noted that the list of documents is only indicative and not exhaustive. The additional documents would be based on the advice on the pattern of shareholding, any other matter required as per the authority.
If an application doesn’t satisfy the prescribed conditions, the authority may refuse to renew the registration. However, the applicant must be provided the opportunity to be heard and no application can be refused without providing such an opportunity.
If an applicant is aggrieved by the decision of the authority, he or she may apply to the chairman of the authority, within 30 days from the receipt of the decision of the authority, to reconsider its decision. The chairman of the authority will consider such a request and intimate the applicant in writing regarding his decision within 60 days from receipt of the reconsideration application.
Further, if an applicant is aggrieved by the decision of the chairman, he or she may appeal to Securities Appellate Tribunal as per the prescribed procedure within 45 days of the order. He may conform, modify or set aside the order appealed against. It is important to note that if the Securities Appellate Tribunal rejects such appeal then the applicant can make a fresh application for Insurance Marketing Firm Registration only after one year.
Where an application for renewal of registration is refused by the authority, the applicant shall from the date of receipt of such information cease to act as an IMF and shall also cease to solicit insurance business and conduct insurance activities. However, it may be noted that the firm shall continue to serve the extant policies for six months within which arrangements shall be made by the IMF for having the contracts attended to.