October 1, 2004.

 

STANDARD INSTRUCTIONS AND GUIDELINES

APPLICABLE FOR APPROVAL/RENEWAL OF AGENTS TRAINING INSTITUTES APPROVED/TO BE APPROVED BY THE AUTHORITY

 

 

These instructions/guidelines are applicable to all the training institutes including in-house training institutes of the insurers.  These guidelines will be effective 31st October, 2004.  Any violation, non-adherence and breach of these instructions shall be treated as violation of provisions of IRDA Act, Insurance Act and regulations made there under requiring practical training for the grant of license to an insurance agent and renewal thereof and met with penal provisions including fine, suspension, and cancellation of the approval granted by the Authority from time to time.  

 

1.                 The applicant shall have to undergo at least 100 hours’ practical training in life or general insurance business which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent.  The approved training institutes will cover the syllabus already prescribed by the Authority during this period.  In case of 50 hours of training, the duration will be half as mentioned above.

 

2.                 The training duration should be minimum 18 working days excluding Sundays and holidays with 6 hours per day excluding lunch and tea break applicable for full time batches.  For part-time batches the training can be imparted 3 hours daily in the evening excluding tea break and the minimum duration of the training will be 34 working days excluding Sundays and holidays.

 

3.                 No product training/market survey should be included into this hundred 100 hours training.  The product training, if any, to be given by the insurance company should be over and above the minimum training hours prescribed by the Authority.  However, the revision examination may form part of 100 hours of training.

 

4.                 The attendance record of the trainees should be maintained at the Institute for necessary inspection at any given point of time.  The candidates should sign the attendance register in his/her own hand-writing.  It will be the duty of the In-charge of the Institute to mark absent preferably with red-ink.  No relaxation in attendance is permitted.  The attendance will be counter-signed by the faculty or in-charge of the training institute.

 

5.                 In case of short-fall of attendance, extra class may be permitted but the extra hours may be specified separately with proper attendance and details of faculty.  The extra classes for the shortfall in attendance, if any, can be held on Sunday or holiday during the course of the training or after completion of 18 days of training.

 

6.                 Every Institute should have at least one qualified permanent faculty who is an Associate or Fellow from the Insurance Institute of India for each stream i.e. for Life and Non-Life.  Those not fulfilling this requirement will be required to obtain the above qualification within 2 years.  However, the training institutes can employ faculty with more than 15 years of service in the insurance company with last three years in managerial capacity i.e. Divisional Manager and above in the public sector insurance companies.

 

7.                 The attendance register of the faculty members should be maintained at the training institutes.  The faculty should sign the attendance register in his/her own hand-writing daily.  It will be the duty of the In-charge of the Institute to mark absent preferably with red-ink.

 

8.                 The record of the payment made to faculty should be maintained at the training institute i.e. batch-wise payment detail should be maintained.  In case the employment of the faculty is full time, record of monthly wages/payment should be maintained.

 

9.                 The faculty should provide details of the other Institutes with whom they have been empanelled as part-time/guest faculty.  The faculty must also inform the other Institutes of his/her leaving one institute and joining any other training institute.

 

10.             The sponsorship letter must be available with the training institute at the time of commencement of training session.  The insurer should affix a photograph of on the sponsoring letter.  The insurer should also put rubber-stamp of the company across the photograph and Institute should keep the  record with them for inspection purposes.

 

11.             Register should be maintained at the training institute giving details of batches completed, strength of the each batch, number of candidates decertified, name of the sponsored insurer and details of faculty who imparted the training with dates.  The record of results of the examination whether passed/failed  recorded in the same register giving details of date of examination and centre.

 

12.             The seating capacity of each class-room should not exceed 40.

 

13.             The fresh accreditation will be given on need basis after assessing the needs of the particular city/town.  This may not apply to the in-house training institutes of the insurers.

 

14.             The initial approval will be for a period of 3 years and consideration of further renewal upto 3 years would depend on the satisfactory compliance of requirements of accreditation.

 

15.             The insurance companies would regularly send their officials to the oversee the proper conduct of the training at the institutes and would not sponsor candidates to those institutes that are not maintaining the required standards of and facilities for the training.  In-house training centres will be subject to regular inspections and audit by the insurer concerned in addition to officials of the Authority.

 

16.             The training institute must display the certificate of accreditation to impart training issued by the Authority at the training institute.

 

17.             The Institute should not allow a franchisee to conduct courses on its behalf even if the faculty is that of the Institute.  The Institute should conduct the training on its own premises or hired premises with proper infrastructure.

 

18.             No marketing fee/consultancy fee payment is permitted for getting the training batches.

 

19.             Henceforth, no temporary accreditation will be given by the Authority.  The existing institutes, who have been granted temporary accreditation shall cease to operate by 31st December, 2004 or the actual date of expiry whichever is earlier.

 

20.             It will be the responsibility of the Insurance Company to check the status of the institute before sponsoring any candidates for training.  If name of the training institute is not displayed on IRDA web-site, no insurer should sponsor the candidate for training to such an institute.

 

21.             In case of mofussil areas or the cities where there are no accredited institutes and an insurance company intends to appoint agents, it will be the responsibility of the insurance company to conduct training.  The employed faculty only of the in-house training centres may impart training at such places.  No temporary/guest faculty is permissible for the in-house training centres of the insurers.

 

22.             The Institutes must keep with them one set of records of the training at the place where the training is being imparted.

 

23.             No accreditation will be given to the institutes that are imparting training in the hotels.  Fresh accreditation/renewal, if any, will be granted by the Authority only to Institutes who are maintaining good infrastructure and complying with all other requirements specified in the application form for licence/renewal of the criteria of obtaining marks already prescribed by the Authority in this behalf.

 

24.             The Institute should confine its activities only to the place/city for which it has been given the approval.  No training outside the said place/city is permitted.  The premises approved for the training shall not be used for any other purposes i.e. the institute will have dedicated class-rooms which will not be used for any other purposes even though the institute is not running any training batch and if during the course of the inspection by the officials of the Authority, it is found that the institute is not maintaining dedicated class-rooms, the accreditation of the institute will stand cancelled without giving any notice.

 

25.             The Institutes must submit a copy of the lease deed/rent agreement at the time of seeking fresh accreditation/renewal/change of address of the institute.  No need-base agreement/arrangement for conducting training will be accepted by the Authority.  The Institutes will have to maintain dedicated class-rooms during the tenure of the accreditation. 

 

26.             The Institutes that have not conducted any training during the last financial year will not be considered for renewal.

 

     27.     (i) The existing Institutes may convey their willingness to abide by these instructions in the following form for  each centre separately.

 

Name & Address of the Institute (name of the city, State and Pin Code)

Date of Accreditation of the Institute

Expiry date of validity of the Accreditation

Accreditation granted for Life/General or both

Copy of the last accreditation certificate/ letter

Name of the In-charge of the Institute with telephone numbers, Fax number and e-mail address

 

 

 

 

 

 

 

(ii)   The above information must reach  the Authority within 15 days from the date of issuance of these guidelines.   The consolidated list of approved training institutes will then be placed on our web-site and updated from time to time so that Insurance Companies can approach them for conduct of training.

 

28.              Prior approval of the Authority must be obtained if the Training Institute intends to change any of the particulars, details or provisions already approved by the Authority.  All such changes would be simultaneously incorporated on IRDA web-site.

 

29.              Separate draft guidelines will be issued for on-line training institutes.

 

30.              The training institutes should impart training only to the  prospective agents of the insurance companies registered with the Authority.  A list of the registered insurance companies is available on the web-site of the Authority (www.irdaindia.org). 

 

31.    For 25/50 hours training requirement at the time of renewal of agency licences, no separate syllabus is proposed at this stage by the Authority.  The institutes may devise the syllabus in consultation with the insurers which should include: -  

 

·        New regulations/notifications/circulars issued by IRDA [which affect intermediaries or policyholders]

·        New products introduced by the insurers in the market;

·        All tax matters relating to and benefits accruing from such products.

·        Advanced Sales Training

·        Services which policyholders expect from agents and provisions of agents’ code of conduct

·        Protection of policyholders’ interests and grievance redressal mechanism.

·        Any other item which the insurer may deem fit from time to time.

 

 

CHAIRMAN