Registration Renewal Process of Insurance Marketing Firm

In the Insurance sector Insurance marketing firm is the new type of business and distribution channel. It was formed by one of the insurance committees in the year 2007. Their work is equal to the distribution firm. Basically insurance marketing firms collaborate with the insurance companies for the marketing of their products. In this blog we shall take a close look at its registration renewal process. What is an Insurance Marketing Firm? As per the Insurance Regulatory and Development authority of India (Registration of IMF) Regulations, 2015, IMF is defined as an entity registered by the authority to scott or procure insurance products, to undertake insurance services activities and to distribute other financial products as mentioned in the regulations through employing the individuals licensed to market, distribute and service other financial products. Procedure for renewal of IMF registration Following are the procedure for renewal of IMF registration- Prescribed form is required to be submitted for registration renewal to the authority in Form AA. he form should be submitted 30 days before the expiry of the registration. The IMF can also apply for renewal 90 days before the expiry of registration. Form is to be submitted along with the required documents. The fees of Rs. 3000 + service tax is required to be submitted along with the form submission. In case the applicant fails to submit the application for renewal to the authority minimum of 30 days before the end of registration, an additional amount of Rs. 100 must be paid as penalty. Thereafter, the authority may seek further clarification or information from the applicant while examining the application form. The applicant needs to submit such information or clarification within 2 days of the receipt of the communication. In case the applicant requires additional time then he should intimate the authority, and the authority should consider the request on merit. If the examiner is satisfied with the information or clarification submitted by the applicant, the authority shall renew the registration in form D for three years and communicate the same to the applicant. Documents Required for Renewal of IMF Relevant information is required to be sent in form D. Declaration of fit and proper criteria from the principal officer, Directors, Managing Partners must be provided in the fit and proper form. Infrastructure details with supporting evidence such as ownership or lease agreement papers concerning the office space/ equipment etc. for areas of operation. Renewal training certificate for 25 hours undergone by the principle officer. Copies of professional indemnity insurance policies of the past three years. Copies of annual reports of the last three years. Any other information that is relevant to the nature of services provided by the applicant. Any other documents as deemed necessary by the authority. What to do when renewal for registration is not granted by the authority? If the authority is not satisfied with the application submitted by the applicant, the authority may refuse to renew the registration. However, the applicant must be provided the opportunity to be heard and no application can be refused without providing such an authority. If an applicant is aggrieved by the decision of the authority he may apply to the chairman within 30 days from the receipt of decision. The chairman of the authority will make such a request and intimate the applicant and will give his decision within 60 days from the receipt of the reconsideration application. If the applicant is not satisfied with the decision of the chairman, he may further appeal to the Securities Appellate Tribunal within 45 days of the order. If the Tribunal also rejects the application then the applicant can file a fresh application only after one year. Conclusion A license is necessary to carry out activities in the insurance industry. The insurance marketing firm also requires to register itself and then renews its registration from time to time in order to carry out its operation in an authentic manner.