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IMF full form is Insurance Marketing Firm. It is a type of business entity in India that works in the insurance industry. They act as an intermediary between insurers and potential customers. They were formally introduced in India in 2015. The Insurance Regulatory and Development Authority of India (IRDAI) is responsible for registering and overseeing the IMFs. Without IRDAI’s approval, a business cannot provide IMF services.
In this blog post, we shall learn about the roles and responsibilities of IMFs in the country. If you’re planning to start an insurance business, then we recommend you to go through this blog post!
IMF in insurance refers to insurance marketing firm. An IMF is an insurance business entity registered with the Insurance Regulatory and Development Authority of India (IRDAI) in accordance with the IRDAI Registration of Insurance Marketing Firm Regulations 2015. An IMF primarily deals in soliciting, purchasing, and distributing insurance products. It serves as a distribution channel that offers insurance and often focuses on financing planning/advice.
To give customers a broader selection of options, IMFs tend to collaborate with several insurance companies. Examples of IMFs are Kstar Assurance Insurance Marketing LLP, Tryus Insurance Marketing Pvt. Ltd. and Wealth Instill Insurance Marketing Pvt. Ltd. among others.
The roles and responsibilities of the IMF play a crucial role in helping customers pick suitable insurance products and make informed financial protection decisions. Some of Insurance Marketing Firm (IMF) roles and functions include:
IMF's business model involves acting as an intermediary between insurance companies and potential customers. IMF’s role as an intermediary involves promoting, marketing and selling insurance products on the insurers’ behalf.
The focus of an IMF is on generating leads, educating clients about various insurance options available and assisting them in selecting policies that best meet their needs. In return, the IMF earns commissions or service fees from the insurance providers for each successful sale or facilitation of policy renewal.
Another role of an IMF is to assist in insurance-related activities that may involve banks.
Many IMFs are authorized to distribute financial products such as mutual funds, pension products to expand their service offerings. This allows them to help customers to secure their financial future.
IMFs, due to their unique capabilities, are capable and well-positioned to establish strategic collaborations with various other insurance intermediaries such as third party administrators, surveyors, loss assessors, and insurance repositories. These partnerships enable IMFs to offer a variety of services.
A key responsibility of an IMF is to make sure that clients get accurate information about the features, benefits and risks associated with various insurance products. This enables the clients to make smart purchasing decisions.
Whenever an IMF conducts business, they must do so ethically.
It is the duty of an IMF to adhere to the guidelines of IRDAI while conducting business. Additionally, they must maintain accurate records and provide timely information to authorities as and whenever necessary.
An IMF is an IRDAI-authorized entity that is engaged in soliciting, purchasing, and distributing insurance products. Generally, an IMF ties up with multiple insurers to offer a wide range of insurance products across different categories. To get IMF registration in India, you can connect with Registrationwala’s insurance license consultants! We will help you file an application for IMF registration and help you secure IRDAI’s approval.
Q1. What does IMF stand for?
A. IMF stands for Insurance Marketing Firm.
Q2. Which authority regulates IMFs in India?
A. The Insurance Regulatory and Development Authority of India regulates the IMFs in India.
Q3. Can IMFs sell mutual funds?
A. Yes, apart from insurance products, the IMFs can sell mutual funds. However, for this, they need to secure specific certifications and regulatory approvals from AMFI, PRDA, etc.
Q4. Which regulations govern IMFs in India?
A. IRDAI Registration of IMF Regulations 2015 governs IMFs in India.
Q5. Can I run an IMF without IRDAI’s approval?
A. No, you cannot run an IMF without receiving IRDAI’s approval.
Q6. Is IMF registration lifelong or does it require renewal?
A. No, IMF registration is not lifelong. It remains valid for a period of three years from the date of issuance. After this, the registration requires renewal as per the guidelines laid down by IRDAI.
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