Any business entity that wants to register itself as an Insurance Marketing Firm (IMF) must fulfill the following conditions to be considered eligible for IMF registration:
- An Insurance Marketing Firm in India must not suffer from any disqualifications specified under the IRDA IMF (Insurance Regulatory and Development Authority of India, Insurance Marketing Firm) regulations
- The principal officer of the applicant IMF must have undergone the required training and passed the examination as specified by the Authority.
- The principal officer of the applicant IMF must not violate their duties and responsibilities specified by the Authority.
- An Insurance Marketing Firm in India must comply with all the applicable provisions of the following:
- IRDA IMF Act amended from time to time, and the rules, regulations, circulars, or guidelines, as applicable, issued by IRDA from time to time.
- SEBI (Securities and Exchange Board of India) Investment Advisers Regulations of 2013.
- SEBI (Securities and Exchange Board of India) Certification of Associated Persons in Securities Markets Regulations of 2007.
- Regulations issued by other regulatory/statutory/Government Authorities such as SEBI, PFRDA, RBI, and Post Office wherever applicable. Read More: Cable Operator Registration
Pre-conditions for ISPs and FSEs in an IMF
A Financial Services Executive (FSE) is an individual employed by an Insurance Marketing Firm (IMF) who holds a license issued by a financial sector Regulator to market the products like mutual funds, pension funds, other financial products distributed by Investment Advisors, Banking products offered by the Department of Posts, or any other financial product or activity permitted by the Authority.
An Insurance Sales Person (ISP) is an individual employed by Insurance Marketing Firm to solicit or procure insurance products. The Certificate requirements of such entities are as follows:
- An IMF can engage individuals to market insurance and/or financial products specified under the IRDA IMF regulations.
- The Insurance Marketing Firm is not permitted to market other financial products other than the financial products specified in the IRDA IMF Act.
- ISPs engaged by the Insurance Marketing Firm can solicit and procure insurance products of those insurers with whom the IMF has entered into a tie-up/agreement.
- Financial Services Executives engaged by the Insurance Marketing Firm to market financial products must possess a legal permit from a financial regulator in the market.
- Financial Services Executives must be governed by the regulations of the respective Financial regulators. The FSEs must be responsible for any act of omission and commission and would be subject to any disciplinary action initiated by the regulatory Authority.
Qualifications for an ISP
An Insurance Sales Person must possess the minimum qualification of:
- Must have been passed in 12th Class or equivalent examination from a recognized Board/Institution.
- Must have undergone the Insurance Marketing Firm Training prescribed by the Authority and qualified in the Insurance Marketing Firm Examination from an institution recognized by the Authority.
- Should be residents in the area of Registration of IMF.
Insurance Sales Person Training
The Insurance Sales Person of an IMF must undergo the required training, examination, and certification, as prescribed for the Principal Officer of the said Insurance Marketing Firm.Read More: Telemarketing Registration
Financial Service Executive engagement
FSEs engaged by an Insurance Marketing Firm for marketing other financial products must possess valid license/certificate/authorization issued by respective authorities empowered to issue such license/certificate/authorization.
An FSE deployed in the Insurance Marketing Firm must meet the necessary training, qualifications, experience, and other requirements for the line of activity undertaken on an ongoing basis to fully comply with applicable laws, regulations, rules, guidelines, circulars, etc.
If you want to register your business as an Insurance Marketing Firm in the market, then you must adhere to the eligibility criteria set forth by the IRDAI.
