Each insurance policy is attached to an Agent, who is the prime intermediary between the insurance company and the insured.
An Insurance policy is said to be orphaned, when the Agent who had first sold the insurance policy is no longer associated with the insurance company. This can be due to the fact that the agent has left to pursue other options or moved on to another company.
In India, there has been an explosive growth in the number of new insurance policies as also the number of new agents. Hence, in the recent past the number of orphan insurance policies is on the increase.
As a step to encourage agents to continue to service the insurance policies, IRDA has issued Guidelines pertaining to Archived Agency Licenses.
IRDA has been decided to grant one time chance to all insurers to float campaigns to renew the archived agency licenses. These campaigns can be floated upto 31.12.2013.
Beyond this date no request for renewal of archived license will be entertained. Further, it has also been decided to relax fresh examination and training criteria laid down vide circular Ref no. RDA/CAGTS/CIR/LCE/082/05/2010.
However, such agents seeking renewal of licenses shall undergo renewal training as mandated vide Regulation 5 of IRDA (Licensing of Insurance Agents) Regulations, 2000.
With this steps, it has hoped that Insurance companies will motivate their old agents to come back, and renew their engagement with the policy holders.
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