To ensure continuity of services, sectoral regulator IRDA said life insurance companies will have to allot new agents to policyholders in case of removal of existing agents.
“Insurance companies are allowed to allot any of the lapsed orphan life insurance policies to individual agents whose license is in force for the purpose of conservation and rendering effective policy service to the policyholders,” IRDA said in its guidelines on servicing of such policies.
‘Orphan life insurance policies’ means the policies initially effected by an individual agent whose services were subsequently terminated or removed from the rolls of the insurer. It said that single premium life insurance policies are not eligible for allotment under these guidelines.
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