Wednesday, July 11, 2007

Insurance broker licence cancelled

The Insurance Regulatory and Development Authority (IRDA) has cancelled the direct insurance broker licence of New Delhi-based Paramount Insurance Brokers Pvt Ltd. In a notification, the IRDA said that the decision had been taken after an enquiry into the complaints against the broker which include soliciting and procuring insurance business by employing persons not having requisite qualifications as prescribed under Regulation 9, indulging in inducements in cash or kind t o the clients’ directors and the persons acting as introducers, contravening the provisions of section 41 of the Insurance Act, 1938 and non-compliance with Regulations 27 of the IRDA (Insurance Brokers) Regulation 2002 as to the maintenance of systems of internal controls and internal audit, among others. The cancellation would come into effect immediately, according to the notification.
Source: The Hindu Business Line

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