(No.176/DB-040/02 of M/s Pegasus Insurance Brokers Pvt. Ltd., New Mumbai, Oct 2004
- CitationBRO/ORD/044/October-04
Ratio decidendi
The rule this decision rests on
A broker that continues to function without a Principal Officer and without trained manpower, and that fails to disclose the death of its Principal Officer, contravenes Regulations 9(2)(F), 9(3) and 21 read with Clause 12 of the Code of Conduct under the IRDA (Insurance Brokers) Regulations, 2002. Working without a Principal Officer, even temporarily, is also contrary to the Authority's circular cautioning brokers against it. Where the Authority is satisfied that such irregularities are of a grave nature and impair the broker's ability to act in a professional manner, it may suspend the broker's licence under Regulation 34, with immediate effect. The broker's admission of the lapses and its request for time to comply do not preclude that suspension. The suspension is conditional. It may be revoked only after the broker achieves full compliance with the Regulations and furnishes evidence of that compliance to the Authority's satisfaction.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Title:SUSPENSION OF DIRECT INSURANCE BROKERS LICENCE Reference No.:BRO/ORD/044/October-04 Date:13/10/2004 (No.176/DB-040/02 of M/s Pegasus Insurance Brokers Pvt. Ltd., New Mumbai, Maharashtra.) M/s Pegasus Insurance Brokers Pvt. Ltd. is registered with IRDA as Insurance Broker ( hereinafter referred to as ~the broker~) having registration code No. DB 176/03. WHEREAS Mr. Bhaskar De, Principal Officer of the said broking company expired on 27.1.04 and the said broking company failed to bring this fact to the notice of the Authority and functioned without a Principal Officer and also without trained manpower as required as by Regulations 9(2)(F),9(3),Reg.21 r/w the Clause 12 of code of conduct prescribed under the IRDA (Insurance Brokers) Regulations, 2002. Whereas the said broking company vide its letter dated 30th June, 2004 informed the Authority about Mr. Bhasker De being replaced by Mr. Shoubhik De as Director only, but have failed to disclose the death of the Principal Officer and about their company functioning without a Principal Officer with prescribed requirements and also without trained manpower.
The said broking company also failed to abide by the circular No. IRDA/BRO/36/AUG-04 dated 18.8.04 issued by the Authority cautioning broking companies from working without a Principal Officer even for temporary periods. WHEREAS the Authority vide its letter No. IRDA/DB/040/02 dated 29.9.04 brought the above violations to the notice of the broking company and asked it to show cause as to why its broking license be not suspended for above violations. WHEREAS vide letter dated 4th October, 2004, the said broking company has admitted the lapses and requested the Authority to condone the same and to provide it some time to complete all the formalities as prescribed by the IRDA (Insurance Brokers) Regulations, 2002. The Authority has carefully examined the matter and it is satisfied that the above irregularities are of a grave nature and impairs the ability of the broker to act in a professional manner, the Authority hereby suspends the license of the above broking company with immediate effect. The broker may apply for revocation of this suspension order after achieving full compliance with the regulations and providing evidence of this to the satisfaction of the Authority.
This is in exercise of the powers conferred upon the Authority vide Regulation 34 of IRDA (Insurance Brokers) Regulations, 2002, FURTHER M/s Pegasus Insurance Brokers Pvt. Ltd. is directed to acknowledge receipt of this notice and confirm suspension of all fresh insurance broking activities with immediate effect.
Member (Non-Life)
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