Whereas your company M/s Vision Insurance Risk Analysis Management & Brokers Pvt. Ltd. is registered with IRDA as Insurance Broker ( hereinafter referred to as ‘the broker’) having registration code No. DB 238/04. Whereas Regulation 24 of IRDA (Insurance Brokers) Regulations, 2002 (hereinafter referred to as ‘the regulations’)mandates that every insurance broker shall take out and maintain and continue to maintain a professional indemnity insurance cover throughout the validity of the period of the license granted to him by the Authority within 15 months from the date of issue of license.

WHEREAS the broker has however failed to furnish a copy of the professional indemnity insurance cover to IRDA (hereinafter referred to as ‘the Authority’) as prescribed by the regulations. IRDA vide its letter dated 18th March, 2005 had reminded the insurance broker to the requirement of taking professional indemnity insurance policy throughout the validity of the license. It was also brought to the notice of the broker that the Authority will not be sending any separate communication for fulfillment of this requirement at his end.

Whereas you have vide letter dated the 14th January 2005 paid the annual fees and apologized for the delay. Further you had in the reply attempted to explain the non intimation of change of address and contended that the then Principal Officer Mr. Vohra had not notified you about his intentions to discontinue with your company and that he is under investigation for irregularities and mismanagement.

WHEREAS the broker however did not submit a copy of the professional indemnity insurance policy to the Authority inspite of lapse of considerable time and therefore the Authority issued a Show-Cause Notice dated 17.6.05 to M/s Vision Insurance Risk Analysis Management & Brokers Pvt. Ltd. when the 15 months period expired on 17.6.05 directing the broker to produce a copy of the professional indemnity insurance policy failing which the Authority shall be constrained to consider suspending the broking license to act as Direct Insurance broker for failing to comply with Regulation 24 of IRDA (Insurance Brokers) Regulations, 2002 and for not responding to the directions of the Authority. The broker was advised to submit its reply within 10 days of the receipt of the notice failing which necessary action would be taken without any further notice. The broker has neither acknowledged the receipt of Show Cause nor submitted the copy of the professional indemnity insurance policy thus violating the regulations.

In view of the above and on examining the facts and material on record, the Authority is satisfied that this is a fit case to impose the penalty of suspension of license of the broker. Therefore, in exercise of the powers conferred upon the Authority by Regulation 34 of IRDA (Insurance Brokers) Regulations, 2002, the Authority hereby suspends the Licence No. 252/DB-238/04 granted to M/s Vision Insurance Risk Analysis Management & Brokers Pvt. Ltd. with immediate effect until further orders.

FURTHER M/s Vision Insurance Risk Analysis Management & Brokers Pvt. Ltd. are directed to acknowledge receipt of this notice and confirm suspension of all insurance broking activities with immediate effect. They will not be entitled to payment of any remuneration for the insurance broking activities carried out w.e.f. 13th July 2005.

(Mathew Verghese)
Member