Risk Management in Banking and Insurance · Insurance Intermediaries

Registration, Code of Conduct and Training of Insurance Intermediaries

Updated 11 October 2026 · Fact-checked

The Authority (IRDAI) regulates intermediaries by specifying their qualifications, practical training, examinations and code of conduct, and by making regulations on licence fees, capital and remuneration. It also adjudicates disputes between insurers and intermediaries. To answer questions, name the power, its source and the protected interest.

Understand Registration, Code of Conduct and Training of Intermediaries

An insurance intermediary sits between the insurer and the policy-holder. Because policy-holders trust intermediaries for advice, the law lets the regulator set entry standards and conduct standards for them.

The IRDA Act, 1999, section 14(2) gives the Authority its powers and functions. Clause (c) says it may specify requisite qualifications, code of conduct and practical training for intermediaries or insurance intermediaries and agents. Clause (d) lets it specify the code of conduct for surveyors and loss assessors. Clause (a) covers the certificate of registration of the applicant: issue, renewal, modification, withdrawal, suspension or cancellation.

The Insurance Act, 1938, section 114A gives the Authority the power to make regulations, by notification in the Official Gazette, consistent with the Act and its rules. Under it, regulations may cover agents' qualifications, practical training and examination, and the code of conduct for agents. They may also cover the manner and fees for issuing a licence to an intermediary or insurance intermediary, renewal fees, qualifications, training, examination and code of conduct for intermediaries, and the fee for a duplicate licence. They may also cover the capital, form of business and other conditions needed to act as an intermediary.

Money and disputes are also covered. Regulations may fix the manner and amount of remuneration or reward, by way of commission or otherwise, paid to or received by an agent, intermediary or insurance intermediary. Under IRDA Act section 14(2)(m), the Authority adjudicates disputes between insurers and intermediaries or insurance intermediaries. It may also call for information, inspect, enquire and investigate, including audit of intermediaries, under clause (h).

Every regulation must be laid before each House of Parliament for a total of thirty days. Parliament can modify it or annul it, but anything done earlier under it stays valid.

Key rules to remember

Qualifications, code of conduct and training: IRDA Act s.14(2)(c): Authority specifies qualifications + code of conduct + practical training for intermediaries, insurance intermediaries and agents; Core power. Quote it for any question on standards of entry and conduct.
Code of conduct for surveyors and loss assessors: IRDA Act s.14(2)(d); Separate clause. Do not merge it with clause (c).
Registration of applicant: IRDA Act s.14(2)(a): issue, renew, modify, withdraw, suspend or cancel; Registration is a certificate issued to the applicant, covering the full life of the registration.
Adjudication of disputes: IRDA Act s.14(2)(m): disputes between insurers and intermediaries or insurance intermediaries; This is about disputes between insurer and intermediary, not policy-holder claims.
Remuneration regulations: Insurance Act s.114A(2)(jd): manner and amount of remuneration or reward by way of commission or otherwise; Applies to agents, intermediaries and insurance intermediaries.
Licensing regulations for intermediaries: Insurance Act s.114A(2)(q) to (v): licence manner and fee, renewal fee, qualifications and training, examination, code of conduct, duplicate licence fee; Each item is a separate matter on which regulations may be made.
Laying of regulations: s.114A(3): laid before each House for 30 days in total; Modification or annulment does not affect things already done.

How to solve Registration, Code of Conduct and Training of Intermediaries questions

Use this method for any question on how the Authority controls intermediaries.

1Identify who is regulated: agent, intermediary, insurance intermediary, or surveyor and loss assessor.
2Identify the issue: entry (registration, licence), competence (qualification, training, examination), behaviour (code of conduct), money (remuneration) or disputes.
3Name the source: IRDA Act section 14(2) for the Authority's powers, Insurance Act section 114A for regulations.
4State the power in plain words and quote the key phrase, such as qualifications, code of conduct and practical training.
5Apply it to the facts of the case, for example an unlicensed person selling policies or a commission dispute.
6Link to the purpose: protecting policy-holders and promoting orderly growth of insurance business.
7Conclude with a clear answer on what the Authority can do and how.

Quickest way: Issue-to-clause matching

When to use it: Use for MCQs and short case questions where you must choose the correct power or authority.

Spot the keyword: qualification, training, conduct, commission, licence, dispute.
Match it: conduct, qualification or training goes to s.14(2)(c); surveyors to s.14(2)(d); disputes to s.14(2)(m); commission to s.114A(2)(jd).
Check the party: surveyor and loss assessor questions use clause (d), not (c).
Pick the option that says the Authority acts through regulations notified in the Official Gazette.

Common mistakes in Registration, Code of Conduct and Training of Intermediaries

Saying the Authority can only specify a code of conduct and not qualifications or training.
Students remember only the headline phrase.
Fix: Recall the trio in s.14(2)(c): qualifications, code of conduct and practical training.
Applying clause (c) to surveyors and loss assessors.
Both clauses deal with codes of conduct, so they blur.
Fix: Surveyors and loss assessors have their own clause, s.14(2)(d).
Confusing adjudication of disputes between insurers and intermediaries with policy-holder grievances.
The word dispute is used loosely.
Fix: Clause (m) covers insurer versus intermediary. Policy-holder protection sits in clause (b) and in grievance regulations.
Stating specific commission rates or fee amounts.
Students try to add detail to look thorough.
Fix: The Act says the manner and amount are set by regulations. Do not quote figures. The only cap in the text is that the duplicate registration certificate fee under s.114A(2)(c) cannot exceed five thousand rupees.
Treating regulations as valid without Parliament's involvement.
Students ignore section 114A(3).
Fix: Regulations are notified in the Gazette and laid before Parliament for thirty days.

Worked examples

Example 1

Ravi wants to work as an insurance intermediary. Explain which powers of the Authority apply to him before and after he starts.

Show the solution

Before starting: the Authority issues a certificate of registration under IRDA Act s.14(2)(a) and specifies qualifications and practical training under s.14(2)(c).
Regulations under Insurance Act s.114A(2) can set the licence manner and fee, the examination and the capital and form of business needed.
After starting: the code of conduct applies under s.14(2)(c) and the regulations.
The Authority may call for information, inspect and investigate him under s.14(2)(h).
If he breaches the rules, it may suspend or cancel registration under s.14(2)(a).

Answer: The Authority controls Ravi at entry through registration, qualification, training and examination, and afterwards through the code of conduct, inspection and the power to suspend or cancel.

Example 2

An insurer and a broker disagree over commission due. Which powers of the Authority are relevant and how?

Show the solution

Identify the issue: a money matter between insurer and intermediary.
Remuneration: s.114A(2)(jd) allows regulations on the manner and amount of commission or other remuneration. The payment must follow them.
Dispute: s.14(2)(m) lets the Authority adjudicate disputes between insurers and intermediaries.
Information: under s.14(2)(h) it can call for information and enquire.
Apply: the Authority checks the payment against the regulations and decides the dispute.

Answer: The Authority can test the commission against its remuneration regulations and adjudicate the insurer-broker dispute under s.14(2)(m).

Exam tips

Write the clause reference with the power. It shows you know the source.
For case scenarios, name the party first, then the clause.
Keep the sets apart: s.14(2) lists the Authority's functions, and s.114A lists regulation-making matters.
Do not quote commission rates or fee amounts.

Practice questions from Insurance Intermediaries

Registration, Code of Conduct and Training of Intermediaries in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Registration, Code of Conduct and Training of Intermediaries: frequently asked questions

Who sets the code of conduct for insurance intermediaries?

The Authority does. Under IRDA Act section 14(2)(c) it specifies qualifications, code of conduct and practical training for intermediaries, insurance intermediaries and agents. The Insurance Act section 114A lets it make regulations on the code of conduct.

Can the Authority cancel an intermediary's registration?

Yes. Section 14(2)(a) of the IRDA Act lets it issue, renew, modify, withdraw, suspend or cancel a certificate of registration. The manner of suspension or cancellation is also a matter for regulations under section 3 of the Insurance Act.

Who fixes commission for agents and brokers?

Regulations made by the Authority decide the manner and amount of remuneration or reward, by way of commission or otherwise. This power is in section 114A(2)(jd) of the Insurance Act.

Are surveyors and loss assessors also covered?

Yes. The Authority specifies their code of conduct under IRDA Act section 14(2)(d). Regulations can also set their academic qualifications and the period for which a person may act as a surveyor or loss assessor.