annual report 2008-09 - IRDA

ANNUAL REPORT 2008-09
b) Protection of the interests of policyholders in
matters concerning assigning of policy, nomination
by policyholders, insurable interest, settlement of
insurance claim, surrender value of policy and
other terms and conditions of contracts of
insurance.
IRDA has brought out regulations providing for various
Dos and Don’ts for insurers and intermediaries at the
point of sale, point of claim etc. Time-frames were set
for servicing policyholders also in the regulations.
Further, the Regulations mandate insurers to have in
place on effective mechanism for redressal of
policyholder grievances. IRDA has set up a grievances
cell for policyholders of life and non-life insurance and
a separate channel for senior citizens for expressing
their grievances with regard to health insurance
policies. Apart from playing a facilitative role in helping
policyholders getting their grievances redressed by
insurers, IRDA studies the underlying issues that
causes grievances and works towards rectifying the
systemic issues involved.
c) Specifying requisite qualifications, code of
conduct and practical training for intermediaries
or insurance intermediaries and agents
The licensing and code of conduct for all the
intermediaries in the insurance business are specified
clearly in the respective regulations framed under the
IRDA Act, 1999. (Insurance Surveyors and Loss
Assessors (Licensing, professional requirements and
code of conduct), Regulations, 2000, Insurance
Regulatory and Development Authority (Licensing of
Corporate Agents) Regulations, 2002, Insurance
Regulatory and Development Authority (Insurance
Brokers) Regulations, 2002.
d) Specifying the code of conduct for surveyors
and loss assessors
The Code of Conduct applicable for Surveyors and
Loss Assessors in respect of their professional work
is embodied in Chapter VI of IRDA Regulations for
surveyors and loss assessors. Regulation 15
elaborates on the code which, inter alia, stipulates that
a surveyor and loss assessor shall behave ethically
and with integrity in the professional pursuits, shall
strive for objectivity in professional and business
judgment, act impartially when acting on instructions
from an insurer in relation to a policyholder’s claim
under a policy issued by that insurer, conduct himself
with courtesy and consideration to all people with
whom he comes into contact during the course of his
work etc. The code also prescribes that a surveyor
shall not (1) accept or perform work which he is not
competent to undertake, unless he obtains some
advice and assistance, as will enable him to carry out
the work competently. (2) carry out his professional
work with due diligence, care and skill and with proper
regard to technical and professional standards
expected of him and shall keep himself updated with
all developments relevant to his professional practice.
(3) at all times maintain proper record of work done
by him and comply with all the relevant laws. (4) assist
and encourage his colleagues to obtain professional
qualifications, and in this behalf, provide free
articleship and/or practical training for a period of
twelve months. (5) maintain a register of survey work
as provided for, (6) disclose to all parties concerning
his appointment where the acceptance or continuance
of such an engagement may materially prejudice, or
could be seen to materially affect the interests of any
interested party. (7) not disclose any information
pertaining to a client or employer or policyholder
acquired in the course of his professional work to any
third party without the necessary consent, and (8) can
not use or appear to use any confidential information
acquired or received by him in the course of his
professional work, to his personal advantage or to the
advantage of a third party.
e) Promoting efficiency in the conduct of insurance
business
The authority directed insurance companies to have
proper systems in place and also to focus on the
training needs of their workforce so as to improve
efficiency in conducting the insurance business.
f) Promoting and regulating professional
organizations connected with insurance and
reinsurance business:
The Life Insurance Council and the General Insurance
Council are the platforms available for the insurers to
interact and to set up practices for the healthy growth
of the industry. Development of these self regulatory
bodies augurs well for the industry to put across their
view points on critical areas for the growth of the
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