Irdai approves new broking consultancy norms

The Insurance Regulatory and Development Authority of India (Irdai) will soon allow insurance brokers to offer consultancy for claims not exceeding ~10 crore without the need for regulatory approvals. For claims exceeding ~10 crore, the brokers will have to seek prior approval from the regulator.

The last Irdai board meeting held in August cleared changes to the Brokers Regulations, said Sanjay Kedia, president, Insurance Brokers Association of India, adding that a formal notification is expected to be out soon.

For the past one decade, the association’s stand has been that policyholders should have a choice to decide their service provider with regard to claims.

Kedia said the broker represented the policyholder, and not allowing a policyholder to access the services of a qualified licensed broker in a completely free manner was denying him/her the right to exercise claim settlement.