annual report 2009-10 - IRDA

ANNUAL REPORT 2009-102. Protection of the interests of policyholders inmatters concerning assigning of policy, nominationby policyholders, insurable interest, settlement ofinsurance claim, surrender value of policy andother terms and conditions of contracts ofinsurance.III.2.1 IRDA has brought out regulations providing forvarious do’s and don’ts for insurers and intermediariesat the point of sale, point of claim, etc. Timeframeshave been set for servicing policyholders under theRegulations. Further, the Regulations mandateinsurers to have in place an effective mechanism forredressal of policyholder grievances. IRDA has setup a “Grievances Cell” for policyholders of life andnon-life insurance companies and a separate channelfor senior citizens for expressing their grievances withregard to health insurance policies. Apart from playinga facilitative role in helping policyholders getting theirgrievances redressed by insurers within the stipulatedtime, IRDA examines on a continuous basis theunderlying issues that cause grievances and workstowards rectifying the systemic issues involved.3. Specifying requisite qualifications, code ofconduct and practical training for intermediariesor insurance intermediaries and agentsIII.3.1 The licensing and code of conduct for all theintermediaries in the insurance business are specifiedclearly in the regulations framed under the IRDA Act,1999 vide Insurance Surveyors and Loss Assessors(Licensing, professional requirements and code ofconduct) Regulations, 2000, IRDA (Insurance Brokers)Regulations, 2002, IRDA (Licensing of InsuranceAgents) Regulations, 2000 and IRDA (Licensing ofCorporate Agents) Regulations, 2002.III.3.2 During 2009-10, the Authority issued guidelineson qualifications of corporate insurance executivesand Faculty of Agent’s training Institutes.III.3.3 The Authority has issued directions on agents/corporate agents; sharing of Database for Distributionof Insurance Products; streamlining the procedure fortransfer of corporate agents from one insurer toanother insurer; inspection of corporate agents byinsurers; and on pre-recruitment examination forinsurance agents.4. Specifying the code of conduct for surveyorsand loss assessorsIII.4.1 The code of conduct regarding the professionaland ethical requirements for conduct of theirprofessional work is specified in Chapter VI of theIRDA Regulations for Surveyors and Loss Assessors,2000. Regulation 15 elaborates on the code which,inter alia, stipulates that a surveyor and loss assessorshall behave ethically and with integrity in professionalpursuits, shall strive for objectivity in professional andbusiness judgment, act impartially when acting oninstructions from an insurer in relation to apolicyholder’s claim under a policy issued by thatinsurer, conduct himself with courtesy andconsideration to all people with whom he comes intocontact during the course of his work, etc. The codeof conduct also states that a surveyor 1) shall notaccept or perform work which he is not competent toundertake; 2) carry out his professional work with duediligence, care and skill and with proper regard totechnical and professional practice; 3) at all timesmaintain proper record of work done by him andcomply with all the relevant laws; 4) assist andencourage his colleagues to obtain professionalqualifications, and in this behalf, provide freearticleship and/or practical training for a period oftwelve months; 5) maintain a register of survey workas provided for; 6) disclose to all parties concerninghis appointment where the acceptance or continuanceof such an engagement may materially prejudice, orcould be seen to materially affect the interests of anyinterested party; 7) not disclose any informationpertaining to a client or employer or policyholderacquired in the course of his professional work to anythird party without the necessary consent; and 8)cannot use or appear to use any confidentialinformation acquired or received by him in the courseof his professional work, to his personal advantage orto the advantage of a third party.III.4.2 The IRDA, as mandated by the Government ofIndia, has established the Indian Institute of InsuranceSurveyors and Loss Assessors (IIISLA) to promoteprofessionalism amongst surveyors as part of furtherreforms in the insurance sector.III.4.3 With a view to streamlining the process ofworking of surveyors and loss Assessors, the Authorityhas proposed to make further amendments to the76