IC-38 Corporate Agent / SP key terms

A company, firm, or other organisation licensed by IRDAI to solicit and procure insurance business through its specified employees, rather than an individual agent working alone.

An employee of a corporate agent who is identified to IRDAI, trained, and authorised to solicit and sell insurance products on the corporate agent's behalf.

The formal registration granted by IRDAI permitting an entity to act as a corporate agent for one or more insurers, subject to capital, fit-and-proper, and infrastructure conditions.

The Insurance Regulatory and Development Authority of India, the statutory regulator that licenses insurers, agents and intermediaries and issues the regulations governing their conduct.

The statute that established IRDAI and set out its powers to regulate, promote and ensure the orderly growth of the insurance industry in India.

The principal legislation governing insurance business in India, covering registration of insurers, agent licensing, policyholder protection and prohibitions on rebating.

The mandatory pre-appointment examination prescribed by IRDAI that a specified person of a corporate agent must pass before being permitted to solicit insurance business.

The minimum hours of insurance instruction a specified person must complete before appearing for the IC-38 examination and being appointed to sell insurance.

Regulator-approved digital learning modules, including e-learning content and assessments, that candidates complete to satisfy the pre-appointment training obligation.

A computer-based test delivered at an approved examination centre under invigilation, used to assess a candidate's knowledge before licensing or appointment.

The minimum score a candidate must obtain in the IC-38 examination to be declared successful and become eligible for appointment as a specified person.

A person licensed under the Insurance Act to solicit and procure insurance business for an insurer in return for commission, acting as a representative of the insurer.

The legal relationship in which the agent is authorised to act on behalf of the insurer, creating duties of loyalty, disclosure and obedience toward the principal.

The prescribed standards of behaviour for agents, covering fair dealing, accurate disclosure of product features, confidentiality, and avoidance of misrepresentation or rebating.

The illegal practice of offering a policyholder part of the agent's commission or any other inducement to buy a policy, prohibited under the Insurance Act.

Making false or misleading statements about a policy's benefits, terms, or the insurer's standing, which breaches the agent's duty of fair dealing.

The principle requiring both insurer and proposer to disclose all material facts honestly, since insurance contracts depend on full and accurate information from both sides.

Any information that would influence an insurer's decision to accept a risk or set its terms and premium, and which the proposer must therefore disclose.

Failure by the proposer to reveal a material fact, which may entitle the insurer to avoid the contract or repudiate a claim.

The application document in which the proposer supplies details of the risk and declares the truth of the information, forming the basis of the insurance contract.

A financial or legal relationship such that the policyholder benefits from the continued existence of the insured subject and suffers loss if it is destroyed.

The principle that a general insurance claim restores the insured to the financial position held before the loss, without allowing profit from the claim.

The maximum amount the insurer agrees to pay under a policy for a covered loss, and the figure on which the premium is normally calculated.

The consideration paid by the policyholder to the insurer in exchange for the cover provided under the policy.

The remuneration an insurer pays an agent for procuring business, calculated as a percentage of premium within the limits set by the regulator.

The insurer's right, after paying a claim, to step into the insured's shoes and recover the loss from the party responsible for it.

The principle allowing an insurer that has paid a claim to recover proportionate shares from other insurers covering the same risk, preventing double recovery.

The dominant and effective cause of a loss, which determines whether the loss falls within the cover provided by the policy.

A specific risk, circumstance, or property that a policy expressly does not cover, listed in the policy wording.

The amount of each loss the insured must bear before the insurer pays, used to reduce small claims and moral hazard.

The formal contract issued by the insurer setting out the cover, conditions, exclusions, and obligations of both parties.

A window after policy issuance, usually fifteen or thirty days, during which the policyholder may cancel the policy and receive a refund of premium subject to conditions.

The continuation of a policy for a further term by payment of premium before expiry, preserving continuity of cover and any accrued benefits.

The additional time allowed after the due date for payment of premium during which cover continues and the policy is not treated as lapsed.

The identity verification and due diligence process an agent must complete for each prospect, including collection of prescribed documents, before business is solicited.

The set of laws and internal controls aimed at preventing insurance products from being used to disguise the proceeds of crime.

The formal mechanism, including insurer-level complaint handling and escalation to the regulator or ombudsman, for resolving a policyholder's complaint.

An independent authority that resolves eligible policyholder complaints against insurers through a low-cost, quasi-judicial process.