Irda Issues New Guidelines For Insurance Professional – Irda has framed new rules for professional indemnity policy for insurance intermediaries
The professional compensation rules issued will be applicable from July 1.
As per the new guidelines, now the insurers will decide the premium on the basis of risk.
New Delhi . The Insurance Regulatory Authority of India (IRDA) has issued guidelines on standard professional indemnity policy for insurance intermediaries including brokers, corporate agents and web aggregators providing information on products of various insurance companies. The guidelines will come into effect from July 1, 2021. According to these, professionals and entities can be prosecuted for negligence in the performance of duties on the part of clients.
Here is the Professional Indemnity Policy: A professional indemnity policy is a liability insurance product that protects individuals and organizations providing professional advice from claims of negligence by their clients. It covers financial loss caused to clients as a result of breach of professional functions. According to IRDA, everyone should strive to offer standard professional compensation. Insurers will fix the premium based on the risk. Insurers will fix the premium based on the risk.
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