It has come to the notice of the Authority that Principal Officers of licensed Insurance Broking Companies are engaged in other activities apart from performing the duties of Principal Officer of broking companies. Instances have also come to notice where Principal Officer(s) have left the services of the broking companies and the same was not brought to the notice of the Authority immediately but after a lapse of considerable time. In some cases, the Principal Officer was deputed to look after other assignments in the group companies while working as the Principal Officer. It has also come to Authority’s notice that broking companies have appointed personnel from other broking companies without the incumbent Principal Officer resigning from his earlier position. In some cases, the broking companies fail to notify the Authority about the change in position of Principal Officer in their respective companies with the result that old names continue to appear on the IRDA Website.

The Authority would like to highlight once again that IRDA (Insurance Brokers) Regulations, 2002 envisage the post of Principal Officer as a full time post and not on part time basis and with considerable amount of responsibility attached to it. He is responsible for conducting the affairs of the broking company in a professional manner and as per the rules and regulations laid down / prescribed by the Authority. He is the interface between the customers and the insurers. He also acts as a link between the Regulator and the Broking Company. The Principal Officer of a broking company is not permitted to look after any other assignment or position so long as he is the Principal Officer of a broking company, even for a temporary period. Any change in position of the Principal Officer of a broking company should be brought to the notice of the Authority without loss of time and the position of Principal Officer of an insurance broking company cannot be kept vacant. The broking company should ensure a substitute, who fulfills all the eligibility requirements i.e. educational, training requirements, not suffering from any of the disqualifications under section 42 D of Insurance Act, 1938, etc., in place before it relieves the current Principal Officer.

The broking companies are directed to adhere to the instructions contained in the circular.



(Mathew Verghese)
Member (Non-Life)