Brokers in the rapidly liberalising Indian insurance market won’t be allowed to collect premiums or manage claims under new legislation being debated by the country’s parliament. The Insurance (Amendment) Bill covers such areas as commission, new competency rules for managers, distribution and the use of credit facilities.

Although the country’s first broker has already been licensed – they had been banned since 1938 – the legislation that will allow that company to practise has had a rough passage through the lower house, the Lok Sabha, since it was introduced last year. The Bill is expected to free up the distribution process, and insurers and banks are expected to adopt multi-channel strategies once the law comes into effect.