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Group Insurance

Insurance Regulatory and Development Authority of India
(Insurance Brokers) Regulations, 2018
(see regulation 30 and regulation 8(2))

CODE OF CONDUCT – Insurance Broker

1. Every insurance broker shall follow recognised standards of professional conduct and discharge their functions in the interest of the clients or policyholders.

  • conduct its dealings with clients with utmost good faith and integrity at all times;
  • act with care and diligence;
  • ensure that the client understands their relationship with the insurance broker and on whose behalf the insurance broker is acting;
  • Treat all information supplied by the prospective clients as completely confidential to themselves and to the insurer(s) to which the business is being offered;
  • take appropriate steps to maintain the security of confidential documents in their possession;
  • hold specific authority of client to develop terms;
  • understand the type of client it is dealing with and the extent of the client’s awareness of risk and insurance;
  • obtain written mandate from client to represent the client to the insurer and communicate the grant of a cover to the client after effecting insurance. Unless it is specifically mentioned otherwise, the written mandate obtained from the client shall be valid for a period of one year if the mandate has no validity period mentioned. However, in the case of pre-underwritten policies or retail/individual policiesthere is no requirement of obtaining mandate from the client;
  • obtain written mandate from client to represent the client to the insurer/ reinsurer; and confirm cover to the insurer after effecting re-insurance, and submit relevant reinsurance acceptance and placement slips;
  • avoid conflict of interest.
  • Obtain necessary documents required under KYC norms and share with insurance
  • company.
  • Assist the client in opening e-insurance account.

14. Every insurance broker shall display in every office where it is carrying on 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.

15. An insurance broker as defined in these regulations shall not act as an insurance agent of any insurer under section 42 of the Act.

16. Every insurance broker shall abide by the provisions of the Insurance Act, 1938 (4 of 1938), Insurance Regulatory and Development Authority Act 1999(41 of 1999), rules and regulations made there under which may be applicable and relevant to the activities carried on by them as insurance brokers.