M/S. Lord Krishna Insurance Brokers Pvt Ltd., Jan 2008
- Order No.IRDA/DB 258/04
Ratio decidendi
The rule this decision rests on
The licence of a direct insurance broker lapses on the expiry of its validity period where the holder has not made a renewal application in Form A under Regulation 13(1) of the IRDA (Insurance Brokers) Regulations, 2002. Its validity then ends on the date of expiry, and the broker must cease to act as an insurance broker from that date. A broker whose licence has so lapsed remains bound by the continuing obligations the Regulations impose on cessation. These include giving an undertaking to service existing clients whose policies are in force for six months under Regulation 40, and complying with the related reporting and accounting requirements specified in the order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
To The Principal Officer, M/S. Lord Krishna Insurance Brokers Pvt Ltd, 3rd Floor, Hind Bharti Tower, 7, DDA Service Centre Sector-5, Rohini, DELHI- 110 085. Dear Sir, Re: Expiry of Validity of Direct Broker License No. 276. WHEREAS, LORD KRISHNA INSURANCE BROKERS PVT LTD. (hereinafter referred to as the `Broker`) having its Registered Office at 3rd Floor, Hind Bharti Tower, 7, DDA Service Centre, Sector-5, Rohini, DELHI- 110 085 have been granted license by the Authority to act as a Direct Insurance Broker, vide License No. 276 on 09-09-2004, pursuant to the provisions of the IRDA (Insurance Brokers) Regulations, 2002. WHEREAS, the validity of direct Broker License No 276 issued to M/S. Lord Krishna Insurance Brokers Pvt Ltd expired on 8th September, 2007. WHEREAS, the Broker has not made the renewal application in Form A to the Authority as required under Regulation 13(1) of IRDA (Insurance Brokers) Regulations, 2002. NOW THEREFORE, the Authority, in view of the Broker not applying for renewal of direct Broker license No 276 as per Regulation 13(1) of IRDA (Insurance Brokers) Regulations, 2002, hereby declares the validity of direct Broker license No 276 granted to M/S. Lord Krishna Insurance Brokers Pvt Ltd expired with effective from 8th September, 2007 and the company shall cease to act as an insurance Broker. The Broker is advised to comply with following procedure. 1. An undertaking from the directors to service the existing clients whose policies are in force for a period of six months as required under Regulation 40 of IRDA (Insurance Brokers) Regulations 2002. 2. Confirmation from the Broker that no fresh business has been placed after 8th September, 2007. 3. Submit the Original License No. 276. 4. Details of every event that has come to the company’s notice where the company may become liable to pay damages or compensation to clients, whether covered by the professional indemnity policy or not, giving the following information.
i) Date of period of occurrence. ii) Name of client concerned. iii) Nature of event likely to give rise to a claim iv) Brief description of basis of claim v) Intimated or estimated amount of claim. vi) Amount provided by the broker in its books for the claim. vii) Present status of claim. 5. Remittance of annual fee due as per Regulation 18(1) read together with Schedule II (2) and (3) of IRDA (Insurance Brokers) Regulations, 2002 along with a certificate from its auditor certifying that the annual fee has been calculated as per Schedule II Regulation 22 of IRDA (Insurance Brokers) Regulations, 2002. 6. Submission of half yearly and yearly accounts as per Regulation 25 and 26 of IRDA (Insurance Brokers) Regulations, 2002.
/sd- (Suresh Mathur) Joint Director
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