No. 188/DB-151/03 of M/s Mass Insurance Brokers Pvt. Ltd.,NOIDA,U.P, Jun 2004

Title:SUSPENSION OF DIRECT INSURANCE BROKERS LICENCE Reference No.:BRO/ORD/020/JUNE-04 Date:08/06/2004 No. 188/DB-151/03 of M/s Mass Insurance Brokers Pvt. Ltd.,NOIDA,U.P M/s Mass Insurance Broker Pvt. Ltd. is registered with IRDA as Insurance Broker ( hereinafter referred to as ‘the broker’) having registration code No. DB 151/03. Whereas Regulation 26 of IRDA (Insurance Brokers) Regulations, 2002 ( hereinafter referred to as ‘the regulations’)mandates that every insurance broker shall before 31st October and 30th April each year furnish to the Authority a half-yearly un-audited financial statement containing details of performance, financial position, etc., alongwith a declaration confirming the fulfillment of requirements of capital in accordance with the provisions of regulation 10 and deposit requirements in accordance with the provisions of regulation 22. WHEREAS the broker has however failed to furnish the required information to IRDA (hereinafter referred to as ‘the Authority’) as prescribed by the regulations. IRDA vide its letter dated 8th January, 2004 informed the broker about non-compliance of the above regulation and called upon the broker to submit its un audited half yearly accounts as on 30.9.03 within 15 days from the date of receipt of the letter.

WHEREAS the broker however did not respond to the letter of the Authority inspite of lapse of considerable time and therefore the Authority issued a Show-Cause Notice dated 21.4.04 vide registered post to M/s. Mass Insurance Brokers Pvt. Ltd. asking it to show cause as to why its license to act as Direct Insurance Broker should not suspended, for failing to comply with Regulation 26 of IRDA (Insurance Brokers) Regulations, 2002 and for not responding to the directions of the Authority. The broker was advised to submit its reply within 15 days of the receipt of the notice failing which necessary action would be taken without any further notice. The broker has neither acknowledged the receipt of Show Cause nor submitted its unaudited half yearly accounts as on 30.9.03 thus violating the regulations. In view of the above, the Authority is satisfied that this is a fit case to impose the penalty of suspension of license of the broker. Therefore, in exercise of the powers conferred upon the Authority by Regulation 34 of IRDA (Insurance Brokers) Regulations, 2002, the Authority hereby suspends the Licence No. 188/DB-151/03 granted to M/s Mass Insurance Brokers Pvt. Ltd. with immediate effect until further orders.

FURTHER M/s Mass Insurance Brokers Pvt. Ltd. are directed to acknowledge receipt of this notice and confirm suspension of all insurance broking activities with immediate effect. They will not be entitled to payment of any remuneration for the insurance broking activities carried out w.e.f. 8th June 2004.

(Mathew Verghese) Member