An Insurance Marketing Firm (IMF) registered under IRDAI is permitted to solicit and procure various retail and individual insurance products, including crop insurance for non-loanee farmers, combi-products, property insurance, group personal accident policies, group health insurance, Group Savings Linked Insurance (GSLI), and term insurance policies for MSME enterprises. However, IMFs are not permitted to solicit or procure commercial line insurance business for any segment other than MSMEs.
In addition to solicitation and servicing of insurance products, an IMF is also required to ensure compliance with applicable IRDAI regulations. An illustrative list of such compliances is provided below.
1. Maintain Minimum Net Worth:- The IMF must maintain the prescribed minimum net worth at all times (Rs.5Lakh/10 Lakh)
2. Submission of Net worth Certificate:- A Net worth Certificate duly certified by a Chartered Accountant is required to be submitted within three months from the close of the relevant financial year
3.Appointment of Principal Officer:- Every IMF must appoint a Principal Officer having prescribed qualifications and training.
4. Appointment of Insurance Sales Persons (ISPs):-IMF shall employ ISPs who are in the area of for which the request for registration is made in the application and approved by Authority.
5. Audit report by Statutory auditor:- Statutory auditor shall as soon as possible ,but in any case not later than 30 days from the date of completion of the audit , submit the report to the authority
6. Renewal of Registration:- The IMF registration must be renewed before expiry of 30 days before the expiry of the registration
7 Maintenance of Records:- An insurance Marketing Firm shall maintain prescribed information in physical or electronic form or both
8. Maintenance of Necessary IT System :- The IFM Shall set up necessary IT System having capability of obtaining and monitoring
9. Intimation of Changes to IRDAIAny change in constitution(including shareholding change), change in engagement with insurers ,any addition or deletion of ISP ,Change in director /partner ownership, Principal Officer and any disciplinary proceedings or investigation by any other regulatory /statutory authority
10. Submission of Information/Returns to IRDAI: - The Authority may require periodic reports, statements, and information.
11. Maintenance of Professional indemnity insurance :- Every insurance marketing firm shall take out and maintain at all times a professional indemnity insurance cover throughout the validity period of registration
12. Display of registration Certificate :- :- The IMF shall prominently display the details of its Registration Certificate at its office/place of business
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