CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
A company secretary firm plans to become a corporate agent for insurance distribution. Which statement best reflects the regulatory position under IRDAI rules?
The firm must obtain corporate agent registration from IRDAI and satisfy the prescribed requirements, including having trained and qualified specified persons who solicit business. Neither a small commission level nor verbal insurer approval removes the need for registration, and the requirement applies across insurance classes.
- ANo registration is needed if the firm earns commission below Rs 10 lakh
- BRegistration is needed only for life insurance, not for general insurance
- CIt must hold a corporate agent registration from IRDAI and meet the specified requirements, including trained and qualified specified personsCorrect
- DIt can begin once the insurer verbally approves the arrangement
Explanation
Acting as a corporate agent requires registration (licence) from IRDAI, and the firm must have qualified, trained specified persons who solicit business. There is no commission-based exemption, no life-only rule, and verbal approval does not substitute for registration.
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