An IRDAI panel has suggested standardisation of the professional indemnity policy under which insurance cover can be provided to brokers, corporate agents, web aggregators and insurance marketing firms.
As per the recommendation, policies issued under the new format will cover all damages resulting from any claim for breach of duty of the insured, fraud and dishonesty of any employee for which the insured becomes legally liable, reported Press Trust of India.
Under the proposed standard policy, it would not be permissible for insurers to issue any public liability insurance policy with unlimited liability.
The premium rates under the new agreement will be quoted on an annual basis and the full premium will have to be paid at inception.
The IRDAI has previously proposed standardised policies for several other lines of business including travel insurance, personal accident, term life and health.