As you are looking for information related to Multi Level Marketing Scheme of IRDA, so here are following information:

IRDA Multi Level Marketing Scheme
“Multilevel Marketing Scheme” means any scheme as defined in explanation to Section 42 (A) of the Insurance Act 1938 as amended from time to time

No person shall allow or offer to allow, either directly or indirectly or an inducement to any person to take out or renew or continue an insurance policy through multilevel marketing scheme.

The Authority may through an officer authorized in this behalf, make a complaint to the appropriate police authorities relating to the entity or persons involved in the Multi-Level Marketing schemes

Resort to multilevel marketing for soliciting and procuring insurance policies and/or induct any prospect/policyholder to join a multilevel level marketing scheme.
Here I am attaching Guidelines of IRDA for your reference:

IRDA Guidelines on Appointment of Insurance Agents, 2015

Definitions:
“Act” means the Insurance Act1938 (4 of 1938) as amended from time to time

“Appointment Letter” means a letter of appointment issued by an insurer to any person to act as an insurance agent

“Appellate Officer”means an officer authorised by the Insurer to consider and dispose representations and appeals received from an Insurance Agent.

"Insurance Agent" means an individual appointed by an insurer for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance;

“Authority” means the Insurance Regulatory and Development Authority of India established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);


“Composite Insurance Agent” means an individual who is appointed as an insurance agent by two or more insurers subject to the condition that he/she shall not act as insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.

“Centralised list of Agents” means a list of agents maintained by the Authority, which contains all details of agents appointed by all insurers.

“Centralised list of black listed agents” means list of agents maintained by the Authority whose appointment is cancelled/suspended by a designated official of insurer on grounds of violation of code of conduct and / or fraud.

“Designated Official” means an officer authorised by the Insurer to make Appointment of an individual as an Insurance Agent.

“Examination Body” means an Institution, which conducts pre-recruitment tests for insurance agents and which is duly recognised by the Authority;

Appointment of Insurance Agent by the Insurer:

An applicant seeking appointment as an Insurance Agent of an Insurer shall submit an application in Form I-A to the Designated Official of the Insurer

The Designated Official of the insurer, on receipt of the application, shall satisfy himself that the applicant:-

Has furnished the Agency Application in Form I-A complete in all respects;

Has submitted the PAN details along with the Agency Application Form;

Has passed the insurance examination as specified under Clause VI;

Does not suffer from any of the disqualifications mentioned in Clause VII

Has the requisite knowledge to solicit and procure insurance business; and capable of providing the necessary service to the policyholders;

Attached Files

IRDA Guidelines on Appointment of Insurance Agents, 2015.pdf (188.5 KB, 74 views)