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Definitions
- “Applicable Law” includes all applicable laws including but limited to one or more provisions of the Point of Presence Regulations, 2018 of Pension Fund Regulatory & Development Authority (PFRDA), a Regulations including modifications, amendments or re-enactments thereof, as in force from time to time.
- “Pension Agent” means the Applicant who is appointed as a pension agent by LIC PFL subject to the terms and conditions as applicable.
- 'Intellectual Property' means all patents, trademarks, permits, service marks, brands, trade names, trade secrets, proprietary information and knowledge, technology, computer programs, databases, copyrights, licenses, franchises, formulae, designs and other Confidential Information.
- “PFRDA” means the Pension Fund Regulatory and Development Authority established under the PFRDA Act.
- “PFRDA Act” means the Pension Fund Regulatory and Development Authority Act, 2014 including modifications, amendments or re-enactments thereof, as in force from time to time.
- “PoP Regulations” means the regulations made by the PFRDA in exercise of its powers under the PFRDA Act and including modifications, amendments or re-enactments thereof, as in force from time to time.
- “Terms” refer to terms and conditions herein in connection with the Pension Agent.
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Effective Date
This agreement shall commence from the above-mentioned date and will continue unless earlier terminated in accordance with the provisions of this agreement.
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Eligibility Condition for Engagement of Pension Agent
Any individual/entity falling under any one of the following categories:
- Banking correspondents permitted by the Reserve Bank of India.
- Insurance Agent registered with the Insurance Regulatory and Development Authority of India.
- Mutual fund distributors registered with Association of Mutual Funds in India.
- Any other person permitted by the PFRDA.
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Engagement
The engagement shall be in the nature of principal - agent relationship. Pension agent shall be associated with only one point of presence at any point of time for distribution of each pension scheme. The interested party will file an application with LIC PFL in specified format and furnish details as requested. The acceptance of the application will be at the sole discretion of LIC PFL and will be subject to due-diligence checks as per regulation of PFRDA. The engagement will be bound by the service agreement between LIC PFL and the applicant and will be subject to periodic review and renewal in compliance with regulatory and KYC norms. LIC PFL may at its discretion levy an application/renewal fee. The accepted applicants will be assigned a unique identity number.
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Skill Development & Practical Training
LIC PFL shall provide the skill development and practical training in accordance with the requirements, if any, as per industry standards from time to time.
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General Activity of Pension Agent
- Provide subscriber registration form(s) to the potential subscriber for registration in pension schemes.
- Receive subscriber registration form, subsequent service requests (excluding exit and withdrawal request) in such form as determined by PFRDA, duly filled and signed by the subscriber along with the necessary documentation and ensure they are complete in all respects.
- Ensure that prescribed KYC records for various services are collected in accordance with the provisions of Prevention of Money Laundering Act, 2002 and the rules framed thereunder. Notwithstanding the same, ensuring compliance with KYC, AML and CFT norms shall continue to be the entire responsibility of point of presence.
- Ensure that contribution is collected only by means of electronic mode as per the laid down nomenclature of collection account of LIC Pension Fund Limited.
- Ensure that TATs pertaining to NPS account opening, Contribution processing or any non-financial transaction request from subscribers are adhered to as per applicable regulations and guidelines of PFRDA.
- Ensure that service standards laid down for point of presence for various operational activities are adhered to.
- Adherence of Code of Conduct as stated in this policy under point 5.
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Code of Conduct
- The Agent shall abide by all applicable laws and regulations including but not limited to the service standards provided under the regulations and guidelines issued by PFRDA in relation to National Pension System, for providing the functions relating to registration of subscribers and any other activity as prescribed / notified by PFRDA and required under Prevention of Money Laundering Act (PMLA) 2002.
- Pension Agent must exercise requisite care in selecting those with whom we conduct business. While conducting business, you must adhere to processes which help in ensuring adequate customer due diligence and ongoing monitoring of their transactions. This is done to detect suspicious transactions during the entire period of relationship. Know Your Customer (KYC) and Anti Money Laundering (AML) - Do's And Don'ts
Do's
- Undergo relevant training to update yourself on applicable internal KYC/AML guidelines
- Exercise requisite due diligence while accepting a customer and undertaking a transaction and make reasonable enquiries in case of doubt.
- Escalate all suspicious activities/transactions in respect of money laundering regardless of the amount involved or the nature of the offence as per the applicable internal procedures. Failure to report suspicious transactions despite having knowledge is an offence.
Don't
- Provide assistance to any person to launder proceeds of any criminal conduct.
- Prejudice an investigation by informing (i.e. tipping off) the person who is the subject of a suspicious transaction.
- Keep and maintain the books and documents specified under rules, regulations and guidelines issued by PFRDA in relation to National Pension System.
- Comply with the Know Your Customer requirements specified or laid down by PFRDA for National Pension System
- Ensure the preservation and protection of the security and confidentiality with regard to all matters, documents, information or data already exchanged or to be exchanged in relation to any subscriber.
- Pension Agent shall avoid conflict of interest in managing National Pension System or any other pension scheme covered under the Act and keep the interest of subscribers’ paramount in all matters.
- Subscribers shall be provided with updated information on pension schemes through fair disclosure mechanism as may be instructed by the PFRDA to enable informed decision making by the subscriber: (a) sufficiently before a subscriber opens an account, allow such subscriber reasonable time to understand the information; (b) dissemination on a continuing basis through the website (if applicable), and within a reasonable time-period from the occurrence of any material change or at reasonable periodic intervals, as applicable; and (c) in writing and in a manner that is likely to be understood by the subscriber.
- The Pension Agent shall ensure that they have not given any undue or unfair advantage to any associates or dealt with any of the associates in any manner detrimental to interest of the subscribers.
- Pension Agent, shall maintain high standards of integrity and fairness in all their dealings and in the conduct of its activities. They shall render at all times high standards of service, exercise due diligence which implies a standard of skill and care that is commensurate with honest market practice, good faith, profile of subscriber, the extent of dependence of the subscriber on the point of presence and exercise independent professional judgment.
- Pension Agent, shall not make any exaggerated statement, whether oral or written, either about their/LIC PFL’s qualifications or capability to render services or its achievements.
- Pension Agent are prohibited from indulging in unfair conduct, i.e., an act or omission that significantly impairs, or is likely to significantly impair, the ability of a subscriber to make an informed transactional decision and includes conduct that is misleading or abusive, while dealing with subscribers.
- Pension Agent, shall not collect any charge other than as determined by PFRDA from time to time.
- Pension Agent, shall establish adequate procedures and facilities to ensure that its records are protected against loss or destruction and due arrangements have been made for maintaining back up facilities.
- Pension Agent shall not assign, delegate or transfer any rights, duties or obligations hereunder or interests herein without prior written consent of LIC PFL and any attempted assignment shall be null and void.
- Pension Agent shall not represent itself in any capacity other than providing NPS services as Pension Agent with LIC PFL. Further it shall not undertake any other activity for or on behalf of LIC PFL during the engagement and shall not act in any manner whatsoever for or on behalf of LIC PFL after the expiry / termination of the Service Agreement unless expressly agreed by the Parties.
- Pension Agent undertakes to ensure that its employees and/or Agent, if any, shall act in strict compliance with the Service Agreement and all applicable laws and shall ensure strict conformity to regulations, directions guidelines, notifications, circulars and code of conduct and their amendments from time to time issued by PFRDA.
- Pension Agent shall not use LIC PFL’s name, logo, trademark, service marks or any other intellectual property right in any advertisement, publication, leaflet or document of any kind without obtaining prior written approval of LIC PFL.
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Remunerations and Benefits
- Subject to the provisions made by PFRDA, LIC PFL shall pay the consideration to the – Pension Agent for providing services agreed under the Service Agreement in accordance with the regulations and guidelines issued by PFRDA in relation to National Pension System.
- All payments shall be subject to statutory deductions and other laws applicable from time to time. LIC PFL may, basis mutual discussion, revise the fees, charges or deposits from time to time and the same will be applicable from the date mentioned in the communication received from LIC PFL.
- LIC PFL may withhold payment of any consideration or benefits due to the Pension Agent in case the Pension Agent fails to discharge applicable obligations as stated in this Service Agreement till such time the said requirements remain unfulfilled.
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Other Conditions
- Pension Agent shall use reasonable precautions, including but not limited to, physical, software, and network security measures, to prevent anyone from monitoring, using, gaining access to or import of LIC PFL’s information.
- Pension Agent shall initiate all measures which a prudent person would take to secure and defend its systems that contain LIC PFL’s information against “hackers” and others who may seek, without authorization, to modify or access its systems or LIC PFL’s information. The Pension Agent will periodically test its systems for potential areas where security could be breached.
- Pension Agent shall take appropriate technical measures against (a) any unauthorized or unlawful processing or alteration of LIC PFL’s information in the systems of the Pension Agent, (b) any resultant loss or destruction of, or damage to, LIC PFL’s information due to unauthorized processing or alterations, and (c) unauthorized or accidental access, processing, erasure, transfer, use, modification, or other misuse of LIC PFL’s information and shall ensure no third party shall have access LIC PFL’s information.
- Pension Agent shall be vigilant to report any breach in the security practices, control processes and all suspected security events immediately to LIC PFL’s Information Security Team at licpensionfund@licpensionfund.in.
- Pension Agent acknowledges and agrees that, in the course of its engagement by LIC PFL, the Pension Agent may receive or have access to personal information or sensitive personal data or information of LIC PFL’s customers. The Pension Agent shall comply with the terms and conditions set forth in the Service Agreement and provisions under applicable law in its collection, receipt, transmission, storage, disposal, use and disclosure of such personal information or sensitive personal data or information and be responsible for the unauthorized collection, receipt, transmission, access, storage, disposal, use and disclosure of personal information or sensitive personal data or information under its control or in its possession.
- All personal information or sensitive personal data or information acquired by the Pension Agent from LIC PFL or its customers shall only be used for the purposes of this Engagement and shall not be further processed or disclosed without the prior written consent of LIC PFL.
- Any information and data provided by the LIC PFL or its customers to the Pension Agent and used by the Pension Agent directly or indirectly in the performance of this Engagement shall remain at all times the property of the LIC PFL. It shall be identified, clearly marked and recorded as such by the Pension Agent on all media and in all documentation
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Review and Termination of Service Agreement
- LIC PFL shall periodically review the performance of the Pension Agent and may cancel its engagement with the Pension Agent based upon such a review in terms of number of new pension accounts opened, services rendered to the subscribers or for any other reason.
- The Engagement may be terminated by the Parties by giving 30 days’ notice to other Party in writing. Neither party is required to give any reason for termination. However, in case of breach of any terms and conditions of this Agreement, LIC PFL shall terminate this Agreement with immediate effect.
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Intellectual Property Rights
The Intellectual Property Rights (in the nature of Copyright, trademark or any other right) in the documents, business cards, sales docket/kit, sales literature, presentations, papers, product brochures, policy documents, or any material that contains LIC PFL’s brand name, logos, designs, color schemes, drawings, artistic work etc. provided during the term of this agreement or at any time thereafter including LIC PFL’s brand name, logos, designs, color schemes, drawings, artistic work etc. vests solely and exclusively at all times into the LIC PFL and Pension Agent agree and undertake that he/she shall not set an adverse claim at any time either during the currency of the agreement or at any time thereafter. General Agency further agrees and undertakes not to copy, reproduce, duplicate, modify, adapt, enhance, share with third party, any materials provided by LIC PFL to the Pension Agent, any Intellectual Property Rights in documents, business cards, sales docket/kit, sales literature, presentations, papers, product brochures, policy documents that contains LIC PFL's brand name, logos, designs, color schemes, drawings, artistic work etc at all times during the currency of this agreement and thereafter.
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Agreement
On the termination of this Agreement, for any reason whatsoever, Pension Agent shall immediately deliver to LIC PFL any documents, papers, equipment or other written information which belongs to LIC PFL and which came into Pension Agent's possession in the course of providing the services hereunder. Also, on the termination of this appointment, LIC PFL shall not be responsible and liable to pay any fees, allowance or other charges for services provided prior to such termination or in respect of commitments for the future.
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Indemnity
- Pension Agent shall indemnify the customer and LIC PFL from any liability, penalty, cost, compensation, order, demand, claim or any other liability arising due to breach of TAT or any applicable regulation by Pension Agent with respect to services under NPS as prescribed by PFRDA and/or services provided under this Agreement including but not limited to KYC verification process.
- Pension Agent shall indemnify LIC PFL and its officers, directors, employees, representatives, Agent, respective directors, and assigns from and against any liability, loss, damage, claims, settlement, cost, expenses and penalties of any kind levied on LIC PFL caused due to the Pension Agent including but not limited to the following (a) contravention of any applicable laws; (b) breach of the terms, conditions, covenants, representations, undertakings, obligations or warranties of this Service Agreement; and (c) non-compliance of the directions of PFRDA. LIC PFL reserves the right to withhold the payment due to the Pension Agent to the extent of such unpaid loss/ damage.
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Confidentiality
- All records, information and documents pertaining to LIC PFL or any of its customers / prospect / policyholder, including any personal data of such customers / prospect /policyholder obtained from or on behalf of or provided to LIC PFL and the contents of the Terms and this Agreement will constitute Confidential Information. For the purpose of this clause, any data, information or knowledge will also constitute Confidential Information if it is not in public knowledge, whether or not marked or identified as confidential and which is disclosed by LIC PFL to the Pension Agent in written, oral or in any other form (including without limitation, computer storage, tape or other electronic media forum).
- Pension Agent undertakes and agrees not to disclose any Confidential Information, directly or indirectly, and in any manner whatsoever, whether during the currency of his/her relationship with LIC PFL or any time thereafter. However, such obligation of confidentiality will not apply in one or more of the following cases:
- If and to the extent the disclosure is required by any law or any court, government agency or regulatory authority;
- If the information is or becomes available to public other than as a result of prior unauthorized disclosure by the Pension Agent;
- If the information is or was received from a third party not known by the Pension Agent to be under a confidentiality obligation with regard to such information; or
- If the Pension Agent is able to prove that he/she was lawfully in possession of the information (having been received on a non-confidential basis).
- The Pension Agent agrees not to disclose or provide copies of any such materials, documents and other information, which are meant for internal circulation only, to any third parties.
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Corporate Authority
The Parties represent that they have taken all necessary corporate action to authorize the execution and consummation of this Agreement and will furnish satisfactory evidence of same upon request.
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Relationship
The parties hereby agree that the Pension Agent shall be representing LIC PFL for the fulfillment of the purpose laid down in this agreement. Apart from the authorized purpose, nothing contained in this Agreement shall be construed or deemed to create any association, partnership or joint venture or employer- employee relationship in any manner whatsoever between the parties. The Pension Agent acknowledges that its rendering of services is solely within its own control, subject to the terms and conditions agreed upon and agrees not to hold itself out to be an employee, or servant of LIC PFL or any subsidiary or affiliate thereof. Such a relationship shall likewise not be implied, inferred or deemed to be created from any act or the terms/duties/responsibilities under the terms of this appointment.
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Law And Arbitration
- The provisions of this Agreement shall be governed by and construed in accordance with Indian law.
- Any dispute, controversy or claims arising out of or relating to this Agreement or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996.
- The arbitral tribunal shall be composed of a sole arbitrator to be appointed by both the parties with mutual understanding.
- The place of arbitration shall be Mumbai and any award whether interim or final, shall be made, and shall be deemed for all purposes between the parties to be made, in Mumbai.
- The arbitral procedure shall be conducted in the English language and any award or awards shall be rendered in English. The procedural law of the arbitration shall be Indian law.
- The award of the arbitrator shall be final and conclusive and binding upon the Parties
- The rights and obligations of the Parties under, or pursuant to, this Clause, including the arbitration agreement in this Clause, shall be under the exclusive jurisdiction of the courts located at Mumbai.
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Publicity
The Pension Agent shall not use the name and/or trademark/logo of LIC PFL, its group companies, subsidiaries or associates in any sales or marketing publication or advertisement, or in any other manner without prior consent of LIC PFL.
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Miscellaneous
- Any provision of this Agreement may be amended or waived if, and only if such amendment or waiver is in writing and signed, in the case of an amendment by each Party, or in the case of a waiver, by the Party against whom the waiver is to be effective.
- No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
- The provisions of this Agreement shall be binding upon and insure to the benefit of the Parties hereto and their respective successors and permitted assigns.
- Unless otherwise provided herein, all notices or other communications under or in connection with this Agreement shall be given in writing and may be sent by personal delivery or post or courier. Any such notice or other communication will be deemed to be effective if sent by personal delivery, when delivered, if sent by post, two days after being deposited in the post and if sent by courier, one day after being deposited with the courier.
- This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior written agreements, understandings and negotiations, both written and oral, between the Parties with respect to the subject matter of this Agreement. No representation, inducement, promise, understanding, condition or warranty not set forth herein has been made or relied upon by any Party hereto.
- Neither this Agreement nor any provision hereof is intended to confer upon any Person other than the Parties to this Agreement any rights or remedies hereunder.
- In connection with this Agreement, as well as all transactions contemplated by this Agreement, each Party agrees to execute and deliver such additional documents and to perform such additional actions as may be necessary, appropriate or reasonably requested to carry out or evidence the transactions contemplated hereby.
- The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of this Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the Parties hereunder shall be enforceable to the fullest extent permitted by law.
- The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
- This Agreement together with all Schedules written hereunder form a single Agreement between the Parties hereto.
- This Agreement has been signed in duplicate, each of which shall be deemed to be an original.
- Such of the provisions of this Agreement as are necessary to survive for giving effect to them will survive notwithstanding termination of this Agreement.
- LIC PFL shall be entitled, with notice to the Pension Agent, to assign any of its rights and obligations under this Agreement to any third party.
