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| GENERAL INSURANCE AGENTS REGISTRATION REGULATIONS (GIARR) |
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These regulations came into effect on 1st January 2003, and apply to representative or intermediaries, commonly referred to as “agents”, appointed by member companies of GIAB for the purpose of soliciting and obtaining general insurance business.
There are two categories of agents:
(i) Individual Agent who is an agent registered in his/her own name, and
- Corporate Agent, which is an organization, registered with the Registry of Companies and which is set up for the purpose to transact general insurance agency business for insurance companies. Nominees shall represent corporate agencies. Nominees must possess the same minimum requirements to be an agent.
How to apply for Registration
An application for registration shall be made in the prescribed form obtainable from the GIAB Secretariat or from any member company and submitted to the GIAB Secretariat together with all supporting documents and applicable fees by the principal. The principal is the insurance company whom the agent wishes to represent.
Minimum Requirement to qualify as an Agent or Corporate Nominee
- Be at least twenty-one (21) years of age.
- Pass a minimum professional insurance qualification of the Pre-Contract Examination for Insurance Agent (PCEIA) conducted by the Malaysian Insurance Institute or higher qualification as approved by GIAB.
- Be a Brunei citizen or permanent resident, or holds an employment pass granted for purpose of being a general insurance agent.
(Note: PCEIA examinations are organized on a demand basis subject to a minimum of 5 candidates per session)
Persons or Companies Disqualified from being Agents
- If the person is of unsound mind
- If the person or company has been convicted of any criminal offences including misappropriation of funds, breach of trust, cheating, forgery or abatement or attempting to commit such offence.
- If the company is insolvent or is to become insolvent
- If the person is a bankrupt or any petition has been taken to declare him a bankrupt
- Has misappropriated premiums
- Has had his registration terminated
Responsibilities of Agents
The agent shall be responsible for:
- all acts of his employees, sub-agents or persons acting on his behalf;
- ultra-vires acts.
- The payment of all premium due to the principle
Code of Conduct for Registered General Insurance Agents
Registered agents are required to comply with a Code of Conduct, which covers, among others, the following:
- General sales principles
- Explanation of the contract (insurance policy)
- Disclosure of underwriting information
- Accounts and Financial aspects
- Treatment of documentation
- Assisting the policyholder in the event of claims
- Observation of rates fixed by the company
- Restrictions on publicity
- Treatment of premium refund
- Observe the terms of the Agency Agreement with the principal
Representation
Agents are allowed to represent not more than three (3) principles. A principle is an insurance company that is a member of GIAB. |
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