Wednesday, September 25, 2013

AIC Can Now Use Services of Insurance Agents, Says IRDA

With a view to boost crop insurance penetration in the country, the Insurance Regulatory and Development Authority (IRDA) has permitted Agriculture Insurance Company of India (AIC) to use the agent network of non-life insurance companies to distribute its products.

The regulator in a circular issued recently, has said that those agents and corporate agents willing to offer their services to AIC would have to submit a 'No Objection Certificate' obtained from their parent non-life insurance company and registered themselves with AIC.

However, the regulator said that the certificate is not required to use the existing agency network of state-owned non-life insurers by AIC to distribute government -sponsored agriculture insurance schemes and distribution of in-house products on co-insurance basis.

The regulator said that there is very less awareness about crop insurance in rural people. It is very urgent to make them aware about crop insurance, the regulator said adding, a large number of crops are being cultivated in India without appropriate insurance coverage.

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