M/S. SMS Insurance Services Pvt Ltd, Jan 2008
- Order No.IRDA/DB 200/03
Ratio decidendi
The rule this decision rests on
Where a direct insurance broker licence has expired and the licensee has not made a renewal application in Form A under Regulation 13(1) of the IRDA (Insurance Brokers) Regulations, 2002, the licence's validity lapses on the date of expiry, and the licensee must cease to act as an insurance broker. Following the lapse, the licensee remains bound by the obligations the Regulations impose on a departing broker. These include an undertaking from its directors to service existing clients whose policies are in force for six months (Regulation 40), a confirmation that no fresh business has been placed after expiry, surrender of the original licence, disclosure of potential client claims, and payment of annual fees and filing of accounts (Regulations 18, 22, 25 and 26).
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
To The Principal Officer, M/S. SMS Insurance Services Pvt Ltd, 2nd Floor, Tarasing Market (West Wing), Above Sangli Bank, Nanded-431601. Dear Sir, Re: Expiry of Validity of Direct Broker License No. 279. WHEREAS, SMS INSURANCE SERVICES PVT LTD. (hereinafter referred to as the `Broker`) having its Registered Office at 2nd Floor, Tarasing Market (West Wing), Above Sangli Bank, Nanded-431601 have been granted license by the Authority to act as a Direct Insurance Broker, vide License No. 279 on 26-10-2004, pursuant to the provisions of the IRDA (Insurance Brokers) Regulations, 2002. WHEREAS, the validity of direct Broker License No 279 issued to M/S. SMS Insurance Services Pvt Ltd expired on 25th October, 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 279 as per Regulation 13(1) of IRDA (Insurance Brokers) Regulations, 2002, hereby declares the validity of direct Broker license No 279 granted to M/S. SMS Insurance Services Pvt Ltd, expired with effective from 25th October, 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 25th October, 2007. 3. Submit the Original License No. 279. 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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