Insurance Regulatory and Development Authority

OF THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

AGAINST

M/s RADIANT OVERSEAS (P) LTD

(IN THE MATTER OF THEIR ACTIVITIES RELATED TO AND CONNECTED WITH THE BUSINESS OF INSURANCE IN INDIA)

Whereas it has come to the notice of the Insurance Regulatory and Development Authority (the Authority) that M/s. Radiant Overseas (P) Limited, operating from 517-I, Ansal Chambers-II, 6 Bhikaji Cama Place, New Delhi-110066, has been issuing, marketing and selling in India, mediclaim insurance policies of M/s Dask Ukrainemedstrakh, a private limited insurance company, registered with and licensed by the Government of Ukraine,
Whereas as per the records available with the Authority, the entities viz. M/s. Radiant Overseas (P) Limited and M/s. Dask Ukrainemedstrakh have neither sought for registration nor a license from the Authority nor are registered with or licensed by this Authority to transact insurance business in India,
Whereas in its capacity as the Insurance Regulator of India, this Authority being empowered to protect the interests of the holders of insurance policies, regulate, promote and ensure the orderly growth of the insurance industry in India, sought to verify the nature of the business /transactions being carried on/entered into by M/s. Radiant Overseas Limited and for that purpose issued a notice to M/s. Radiant Overseas (P) Limited to seek their explanation as to how they are carrying out insurance business in India without being registered by this Authority. Their explanation was to be filed within 15 days of receipt of the said notice
Whereas M/s. Radiant Overseas (P) Limited were also given an opportunity to appear for a hearing on 17th September, 2009 and the Director of M/s. Radiant Overseas (P) Ltd appeared in person and made his submissions with regard to the business and transactions carried on by the said company,
Whereas during the course of the hearing, the Director of M/s. Radiant Overseas (P) Ltd also submitted that the said company issues certificates in terms of the agreements that the said company has with the overseas State Government insurance companies viz. M/s. Ukrimedstrakh and M/s. Belgosstrakah. Further, from the documents submitted to the Authority, it is noted that the said company collects money, from persons intending to visit Ukraine and Belarus, towards mediclaim insurance premium and transfers the money collected to the insurance companies; M/s. Ukrimedstrakh and M/s. Belgosstrakah.
Whereas after examining the details of the business and transactions carried on by M/s. Radiant Overseas (P) Ltd., as explained by its Director during the course of the personal hearing and the records and documents submitted on behalf of the said company, the Authority is of the considered opinion that M/s. Radiant Overseas (P) Limited is engaged in the business of insurance,
Whereas in terms of the provisions of the third proviso to section 2C read with section 3 of the Insurance Act 1938 which are in force in India as on date, no person can carry on any insurance business in India unless he has obtained from the Authority, a certificate of registration to that effect. Further, no person can function as an agent or broker for an insurance company unless he holds a valid license issued by the Authority authorizing him to function as such.
Accordingly, in exercise of the powers conferred upon it by virtue of the provisions of section 14 (1) of the IRDA Act, 1999, this Authority hereby directs M/s. Radiant Overseas (P) Limited, New Delhi, to stop issuing, marketing or selling insurance policies, collecting money towards insurance premium or carrying on any activity related to and connected with the business of insurance, failing which the Authority will initiate appropriate action under the provisions of the Insurance Act, 1938, the IRDA Act, 1992 and the Regulations framed thereunder against M/s. Radiant Overseas (P) Limited, New Delhi as it deems appropriate.
This order shall come into force with immediate effect.

Sd/-
(J. HARI NARAYAN )
CHAIRMAN

PLACE: HYDERABAD
DATE: 29, APRIL, 2010