Irda seeks life insurers' views on giving agency licence to DoP

To promote financial inclusion, insurance regulator Insurance Regulatory and Development Authority (Irda) on Tuesday said it is planning to grant corporate agency license to the Department of Post for distributing insurance products.

In a circular to all the life insurance companies, Irda has sought comments from life insurers regarding granting corporate agency license to the India Post.

"In order to join the efforts of various institutions that are participating in financial inclusion programmes as also keeping in view the financial infrastructure reach of India Post, it is proposed to give a special dispensation to India Post by granting Corporate Agency License," Irda  said.

An expert committee on 'Harnessing the India Post Network for Financial Inclusion' has recommended that the low cost platform of India Post be used for strategic partners like Micro finance Institutions (MFIs), Mutual Funds and Insurance companies.

It also suggested expanding the role of Post Office Savings Bank as an agent of Ministry of Finance to play a larger and direct role in financial inclusion.

The life insurance companies are needed to submit their comments before September 24, 2010, the circular said.

Corporate agents act as an insurance agent for insurers and procure business on behalf of the insurance companies through its executives.