IRDA forms a committee to review insurance broker’s regulation

The committee will look into different problems existing in the distribution space.

IRDA has constituted a committee headed by Suresh Mathur, Senior Joint Director, IRDA, to review the entire insurance brokers’ regulations, 2002. Currently, there are 345 insurance brokers who were issued licence by the regulator. The licence is valid for three years from the date of issue.

According to the regulator, “Irda ‘s Regulations, 2002 is ‘silent’ about dealing with requests made by the insurance broker, in case where the authority has cancelled or refused the renewal of licence of an insurance broker. There is no mention of procedure to be followed in case of such aggrieved brokers whose licence is cancelled...either in Insurance Act, 1938 or the Irda Regulations, 2002," explained the release.

The seven member committee will do the following things:

1. Review the entire IRDA(insurance brokers) regulation,2002

2. Review the existing practice and evolve a standardized process to assess the gravity of violation for imposition of appropriate penalties.

3. Look into the possibility of allowing brokers to apply afresh to the authorities in case where the authority has canceled or refused the renewal of license of a insurance brokers. Suggest the process to be followed by the authority under the above circumstances.

4. Any other matter related to insurance broking

The committee would submit its report on or before April 30, 2013.