Whereas your company M/s Just Insure Brokers Ltd. is registered with IRDA as Insurance Broker ( hereinafter referred to as ‘the broker’) having registration code No. DB 095/03. Whereas the IRDA (Insurance Brokers) Regulations, 2002 (hereinafter referred to as ‘the regulations’)mandates that every insurance broker shall have a Principal Officer possessing the prescribed educational qualification, who must have undergone and passed the prescribed examination.
Whereas on getting information about the above broking company working without a trained Principal Officer the Authority issued a notice dated the 2nd December 2004 pointing out the said violation and also calling upon you to show cause why the Broking license granted to them should not be suspended for violating Regulations 9(2)(F) , Regulation 34(1)(k)&(m) of IRDA (Insurance Brokers) Regulations, 2002.
Whereas when the duly addressed notices to your company returned undelivered with the remarks that the address of your company had changed the Authority had to publish last and final notice on its website vide Notice No. IRDA/NOT/BRO/063/Jan-05 dated the 10th January 2005 pointing out the violation of law and asking your company to show cause why the broker license granted to you should not be suspended/ cancelled for the violations mentioned therein.
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 a letter dated 25th April 2005 was also issued to Dr. Rajiv Sharma, Chairman of the above broking company advising him to appear personally before the Authority in order to give him a further opportunity of being heard as specified in Reg.34 of the said regulations with regard to the above mentioned violation.
Whereas Mr. Rajiv Sharma vide his reply dated the 11th May, 2005 has chosen not to avail the opportunity of personal hearing and expressed his inability to leave Delhi till 20th June 05 and also admitted the fact of not having appointed a duly qualified Principal Officer for the above broking company.
Whereas your company has been virtually working without a Principal Officer since 1st November 2004 till date and there is failure to comply with the said regulations and the Circular No. IRDA/BRO/36/AUG-04 dated the 18.08.04 inspite of elapse of considerable time in this regard.
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 temporarily suspends the License No.DB-095/03 granted to your company with immediate effect till a duly qualified Principal Officer is appointed as mandated by the Regulations and the Circular
You are further is 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. 1st June 2005 which please note.
(Mathew
Verghese)
Member