Irda has now started taking action against insurance brokers. After completing its investigations involving flouting of norms in several cases, Irda has refused to renew the licence of Willis India Insurance Brokers Pvt, where Willis, the third-largest international insurance broker has 26%.
Irda has decided to reject the renewal application of Willis India Insurance saying, ?In the context of the violations committed by the broker, having regard to the gravity of the same and the facts of the case which has evidence that the broker has clearly failed to adhere to the applicable and relevant regulations while carrying out the activities as an insurance broker and has acted in a manner prejudicial to the interests of the policyholders.?
However, Irda has allowed Willis India Insurance Brokers to appeal to chairperson of Irda within 30 days from the date of receipt of this communication.
FE couldn’t contact anybody in Willis India Insurance Brokers for their comment. Irda is currently scrutinising 46 brokers including Aon Global before renewing their licences for technical and minor issues. Earlier Irda had fined Rs 2 lakh against Marsh-India for violation of norms before renewing its licenses. Irda’s website showing renewal process marked as ‘scrutiny’ is being viewed as non-friendly by the Insurance Brokers’ Association. Willis India is an affiliate company of Willis and has been operating in India since March 2003, as an Irda-licensed composite insurance broker. The company is a service providers to more than 200 clients in India in diversified sectors like aviation, fertilizers, high-tech, textiles, technology & telecommunication, cement, pharmaceuticals, automobile, banks/ financial institutions etc.