IRDA asks agent training institutes to register as cos

To eliminate non-serious players, the insurance regulator IRDA has asked all existing agent training institutes (ATIs) to get themselves registered either as a company or trust by June.

“Existing accredited entities (ATIs), other than the companies/ societies, trusts, have to convert themselves into companies, societies or trusts within 6 months...,” the IRDA said in a circular.

The Insurance Regulatory and Development Authority (IRDA) has said that only those entities with more than three years of experience in training for financial or insurance products will be eligible for accreditation as institutes for training insurance agents.

The initial approval will be for a period of three years and consideration of further renewal for next three years.

Further, ATIs are required to maintain the attendance record by way of biometric system and put in place an effective mechanism for the same by April 1, 2012.

These entities play an important role in training agents for selling insurance products as the sector is battling the curb the menace of mis-selling. Mis-selling refers to sale of a financial instrument without fully disclosing the pros and cons of it to an investor.