IRDAI issued a circular having reference number IRDAI/CA/CIR/MISC/64/05/2025 dated May 09, 2025, titled Corporate Agency Matters Concerning RRBs…

IRDAI issued a circular having reference number IRDAI/CA/CIR/MISC/64/05/2025 dated May 09, 2025, titled ‘Corporate Agency Matters Concerning RRBs Amalgamated from 1st May 2025 and Beyond’ (“Circular”). The key highlights of the Circular are as under:

Scope: This circular applies to Regional Rural Banks (RRBs) that were amalgamated effective 1st May 2025, as per Gazette Notification dated 5th April 2025.

Surrender of Certificate of Registration: Following the amalgamation of Regional Rural Banks (RRBs), The Transferee RRB may retain one Certificate of Registration (COR) to act as a Corporate Agent, while all other CORs shall be surrendered through a written request to the Authority along with an undertaking to continue servicing existing policyholders through arrangements with previous insurers.

The Transferee RRB shall also be responsible for settling all regulatory matters of the merged entities of Transferor RRB such as GST arrears and return filings within 90 days from the effective date of amalgamation. If the Transferee RRB and an insurer fail to reach an agreement, the insurer shall continue to service the existing policies until the expiry of policy term.

Harmonisation of Corporate Agency Agreements :

• After the amalgamation, Transferee (RRBs) can maintain insurance arrangements with over 27 insurers for up to 12 months, solely to transfer existing agreements.
• These shall be updated via addendums, with no new insurer tie-ups during this period.
• The Transferee RRB shall submit a revised, Board-approved policy Within 60 days of the amalgamation, to IRDAI detailing its approach to open architecture and insurance product servicing.

Transfer of Specified Persons (SPs) from the Transferor to Transferee Regional Rural Banks :

• The IRDAI shall process the transfer of Specified Persons (SPs) from Transferor to Transferee Regional Rural Banks based on a revised list submitted by the Transferee RRB via email.
• IRDAI Shall not charge any fee for issuing revised SP certificates.
• Only one Principal Officer (PO) from the Transferor RRBs may retain their PO certificate, as designated by the Transferee RRB, all other PO certificates from the Transferor RRBs shall be automatically cancelled.

Renewal Commission for the Transferee Regional Rural Bank – Renewal commissions under life insurance arrangements shall be allowed only after policy servicing arrangements are in place.The Authority may request additional documents post-amalgamation.

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