In a set back for the insurance regulator, Insurance Regulatory & Development Authority (Irda), the Bombay High Court on Thursday has nullified the regulator’s decision to reject the renewal of licence of Willis India Insurance Broker Pvt ltd.
Willis India is a joint venture between the third largest international broker Willis and Bhaichand Amoluk, which has 74% in the insurance broking firm.
In September, Willis India Insurance Broker’s renewal licence was rejected by Irda as the brokers had allegedly committed a number of malpractices. Willis India then filed an appeal in Bombay High Court against the order on Sep18 and HC had given a favourable verdict for Willis India.
The Bombay High Court in its order had instructed the Irda to form two member panel to review a fresh application from Willis India for a three year renewal of its licence in next four weeks.
Justice Pale had also rejected the earlier Irda’s decision to reject the renewal licence of Willis India.
However, just before the court order, Irda had unconditionally withdrawn its show cause notice and non renewal letter with regard to Willis India operations.
Irda official said it would act according to the Mumbai High Court order.
Interestingly, the foreign partner Willis had earlier decided to end its partnership with the local partner Bhaichand Amoluk after Irda’s order not renew the licence of its joint venture in India had supported the move in the Bombay High Court to renew the JV’slicence.