Irdai has allowed appointment of insurance agents and intermediaries on the board of an insurance organisation.
But, the regulator has put a few conditions to guard the interest of policyholders and avoid battle of interest. Let us look at them:
. Insurers will ought to are looking for approval before appointing an agent or middleman on board of insurance corporation
. A decision must be passed through the present board before appointing an agent or middleman
. Insurers cannot pay any remuneration to agent or intermediary in lieu of becoming a board member. But, they are able to pay sitting costs to appointed agent or intermediary
. The board will ought to make sure that there’s no battle of interest in this appointment