New Delhi: To increase the penetration of the sector in rural and semi-urban areas, insurance sector regulator Irda has proposed to make it mandatory for insurers, who have been in business for 10 years, to open at least 25% of new offices in areas that have a population less than 1,00,000.
“An insurer having solvency ratio of 1.5 and expenses of management within the extant limits in the preceding three financial years are proposed to be permitted to open new places of business, in places where population is not more than 1,00,000, 15 days after submitting the information on the same”, Irda said.
It added that in respect of all other places of business, the insurers will be accorded approvals on an aggregate basis once in a financial year, based on their expansion plans. However, insurers are allowed to approach Irda for any urgent business proposals for opening any other places of business, it added.
The Draft Exposure also proposes to mandate insurers to offer minimum policyholders’ services such as collection of premiums/proposal deposits and status confirmation of policy service requests in all the places of business.