(a) The MISP shall nominate a person who shall be responsible for its compliances with the guidelines. Such a person shall be called its Designated Person
(b) The Designated Person and all persons distributing motor insurance policies shall be at least 12th pass and shall undergo training and examination of Point of Sales Person to the extent specified by the Authority
(c) They will be given unique identification number based on their Aadhaar No.
Code of Conduct of MISP
Guidelines 10
Every MISP shall:-
(a) offer a choice of motor insurance policies of different insurer(s) to the prospect;
(b) inform the prospect of the premium rates of different insurers;
(c) issue the motor insurance policy on obtaining the express consent of the prospect;
(d) make available to the policyholder a copy of the insurance policy in electronic form;
(e) have a separate dedicated Bank Account linked to the MISP PAN number in which all payments are received from insurer(s) or insurance intermediary;
(f) ensure issuance of receipt of the insurer on receiving insurance premium;
(g) share the data submitted by the prospect policyholder policyholders containing his contact number, mobile number and other details relevant for insurance with the insurers;
(h) transfer data of the policyholders and registration & other particulars of the automobile to the insurers at the end of the day;
(i) undertake reconciliation on a weekly basis on the motor insurance policies distribution & premium collected between the MISP, the sponsoring entity & the insurer;
(j) prominently display copy of the code of conduct on its premises;
(k) furnish any information as required by the Authority relating to insurance business;
(l) submit periodical returns as required by the Authority;
(m) cooperate in any inquiry conducted by the Authority;
(n) follow the code of conduct given in Annexure "2";
(o) comply with any other requirement which the Authority may specify.
Guidelines 11
Every MISP shall not:-
(a) receive any payment directly or indirectly for outsourcing activity behalf of either the insurer or the insurance intermediary;
(b) force the prospect/ policyholder to necessarily buy motor insurance policy through a particular insurance intermediary or insurer;
(c) deny the prospect his rights and options to seek motor insurance policy or renewal of motor insurance policy from any insurer or insurance intermediary;
(d) directly or indirectly control or interfere in determination of premium of policies;
(e) direct or indirect imposition of risk selection by insurers or curtailment of choice of the prospect policyholder;
(f) interfere in product design;
(g) interfere in the appointment of surveyors and loss assessors assessment activities;
(h) directly or indirectly influence the claims for inflating its revenue;
(i) solicit motor insurance business from those persons who did not buy the automobile from it;
(j) issue a motor insurance policy or a motor insurance cover note that carries name or logo or any other symbol, except that of the insurer;
(k) conduct its business in a manner prejudicial to the interests of the policyholders;
(l) indulge in manipulating the insurance business;
(m) indulge in unfair trade practices;
(n) default in complying with, or acts in contravention of, any requirement of the Act, IRDA Act, 1999 or of any rule or any regulation or order made or any direction issued thereunder;
(o) default in complying with any direction issued or order made, by the Authority;
Code of conduct for sponsoring entity, its employees and MISP (see Guideline 10(n) & 14(f))
1. Every sponsoring entity, its employees and MISP shall follow recognized standards of professional conduct and discharge their functions in the interest of the policyholders.
2. Conduct in matters relating to client relationship- Every sponsoring entity, its employees and MISP shall:
(a) conduct its dealing with clients with utmost good faith and integrity at all times;
(b) act with care and diligence;
(c) ensure that the client understands their relationship with the insurer;
(d) treat all information supplied by the prospective clients as completely confidential to
Themselves and to the insurer to which the business is being offered;
(e) take appropriate steps to maintain the security of confidential documents in their
possession;
(f) avoid conflict of interest.
(g) obtain necessary documents required under KYC norms'
(h) assist the client in opening e-insurance account.
3.
Conduct in matters relating to Sales practices-
Every sponsoring entity, its employees and MISP shall:
(a) identify itself and explain the products that are on offer;
(b) ensure that the client understands the type of service it can offer;
(c) ensure that the policy proposed is suitable to the needs of the prospective client;
(d) explain why a policy or policies are proposed;
(e) state the period of cover for which the quotation remains valid if the proposed cover is not affected immediately;
(f) explain when and how the premium is payable and how such premium is to be collected;
(g) explain the procedures to follow in the event of a loss
(h) not indulge in any sort of money laundering activities.
(i) ensure that it does not indulge in misleading calls or spurious calls.
4.
Conduct in relation to furnishing of information -
Every sponsoring entity, its employees and MISP shall:
(a) ensure that the consequences of non-disclosure and inaccuracies are pointed out to the
prospective client;
(b) avoid influencing the prospective client and make it clear that all the answers or statements given are the latter's own responsibility. Ask the client to carefully check details of information given in the documents and request the client to make true, fair and complete disclosure where it believes that the client has not done so and in case further disclosure is not forthcoming it should consider declining to act further;
(c) explain to the client the importance of disclosing all subsequent changes that might affect the insurance throughout the duration of the policy; and
(d) disclose on behalf of its client all material facts within its knowledge and give a fair presentation of the risk.
5.Conduct in relation to explanation of insurance contract - Every sponsoring entity, its employees and MISP shall:
(a) explain all the essential provisions of the cover afforded by the policy recommended by him so that, as far as possible, the prospective client understands what is being purchased;
(b) draw attention to any warranty imposed under the policy, major or unusual restrictions,
(c) provide the client with prompt written confirmation that insurance has been effected. If the final policy wording is not included with this confirmation, the same shall be forwarded as soon as possible;
(d) notify changes to the terms and conditions of any insurance contract and give reasonable notice before any changes take effect;
6. Conduct in relation to renewal of policies - Every sponsoring entity, its employees and MISP shall:
(a) ensure that its client is aware of the expiry date of the insurance even if it chooses not to offer further cover to the client;
(b) ensure that renewal notices contain a warning about the duty of disclosure including the necessity to advise changes affecting the policy, which have occurred since the policy inception or the last renewal date;
(c) ensure that renewal notices contain a requirement for keeping a record (including copies of letters) of all information supplied to the insurer for the purpose of renewal of the contract;
(d) ensure that the client receives the insurer's renewal invitation well in time before the expiry date.
7. Conduct in relation to claim by client- Every sponsoring entity, its employees and MISP shall
(a) explain to its clients their obligation to notify claims promptly and to disclose all material facts and advise subsequent developments as soon as possible;
(b) request the client to make true, fair, and complete disclosure where it believes that the client has not done so. If further disclosure is not forthcoming it shall consider declining to act further for the client;
(c) give prompt advice to the client of any requirements concerning the claim;
(d) forward any information received from the client regarding a claim or an incident that may give rise to a claim without delay, and in any event within three working days;
(e) advise the client without delay of the insurer's decision or otherwise of a claim; and give all reasonable assistance to the client in pursuing his claim.
8. Conduct in relation to receipt of complaints -
Every sponsoring entity, its employees and MISP shall:-
(a) ensure that letters of instruction, policies and renewal documents contain details of complaints handling procedures;
(b) accept complaints either by phone or in writing;
(c) acknowledge a complaint within fourteen days from the receipt of correspondence, advise the member of staff who will be dealing with the complaint and the timetable for dealing with it;
(d) ensure that response letters are sent and inform the complainant of what he may do if he is unhappy with the response;
(e) ensure that complaints are dealt with at a suitably senior level;
(f) have in place a system for recording and monitoring complaints.
9.
Conduct in relation to documentation -
Every sponsoring entity, its employees and MISP shall
(a) ensure that any documents issued comply with all statutory or regulatory requirements from time to time in force;
(b) send policy documentation without avoidable delay,
(c) make available, with policy documentation, advice that the documentation shall be read carefully and retained by the client;
(d) not withhold documentation from its clients without their consent, unless adequate and justifiable reasons are disclosed in writing and without delay to the client. Where documentation is withheld, the client must still receive full details of the insurance contract;
(e) acknowledge receipt of all monies received in connection with an insurance policy;
(f) ensure that the reply is sent promptly or use its best endeavors to obtain a prompt reply to all correspondence;
(g) ensure that all written terms and conditions are fair in substance and set out, clearly and in plain language, client's rights and responsibilities; and
(h) make available to any new registered entity instructed by the client all documentation to which the client is entitled.
(i) Assist the client is obtaining / receiving electronic motor insurance policies.
10.
Conduct in matters relating to advertising -
Every sponsoring entity and MISP shall conform to the relevant provisions of the Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2000, and:-
(a) ensure that statements made are not misleading or extravagant;
(b) where appropriate, distinguish between contractual benefits which the insurance policy is bound to provide and non-contractual benefits which may be provided;
(c) ensure that advertisements contain nothing which is in breach of the law nor omit anything which the law requires;
(d) ensure that advertisement does not encourage or condone defiance or breach of the law;
(e) ensure that advertisements contain nothing which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence or to cause disharmony;
(f) ensure that advertisements are not so framed as to abuse the trust of clients or exploit their lack of experience or knowledge;
(g) ensure that all descriptions, claims and comparisons, which relate to matters of objectively
ascertainable fact shall be capable of substantiation.
11.
Conduct in matters relating receipt of distribution fees -
Every sponsoring entity, its employees and MISP shall if requested by a client, disclose the amount of distribution fee and the basis of the distribution fee it receives as a result of effecting insurance for that client.
12.
Conduct in relation to matters relating to training -
Every sponsoring entity and MISP shall:
(a) ensure that its staff are aware of and adhere to the standards expected of them by this code
(b) ensure that staff are competent, suitable and have been given adequate training;
(c) ensure that there is a system in place to monitor the quality of advice given by its staff;
(d) ensure that members of staff are aware of legal requirements including the law of agency affecting their activities; and only handle classes of business in which they are competent;
(e) draw the attention of the client to Section 4l of the Act, which prohibits rebating and sharing of commission.
13.
Information and Education
(a) Every sponsoring entity and MISP shall support industry education initiatives aimed at explaining insurance to consumers and the community.
(b) Every sponsoring entity, its employees and MISP shall make readily available to client:
(i) Up-to-date information on motor insurance;
(ii) Information to assist insured to determine the level of insurance cover they may require; And
(iii) Information about motor insurance products, services and this Code.
14. Every sponsoring entity and MISP shall display in every office where it is carrying on motor insurance business and to which the public have access a notice to the effect that a copy of the code of conduct is available upon request and that if a member of the public wishes to make a complaint or requires the assistance of the Authority in resolving a dispute, he may write to the Authority.