Reconsider Willis licence: Bombay HC

Written by Sitanshu Swain | Mumbai | Updated: Mar 11 2011, 14:48pm hrs
The court battle between Willis India Insurance Brokers (WIIBPL), and insurance regulator Irda over the cancellation of license of former by the later has now taken a new twist. The Bombay HC Bench comprising of Justice Majumdar and Amjad Sayyed delivered the judgement in the matter of the writ filed by WIIBPL on March 7 against the impugned order of Irda refusing to renew its licence.

The impugned order of November 26 was further to the earlier impugned order dated September 1 2010 of Irda wherein the latter had refused to renew the licence of WIIBPL following which a writ was filed in the Bombay HC.

The Irdas imupgned order of November 26,20110 rejected the renewal of licence of WIIBPL on two grounds which included the non-discolsure of the dispute between Bhaichand Amoluk and ECGC and the earning of interest on premium monies held by WIIBPL through a fixed deposit opened by WIIBPL for a period from 2003 till 2006. The bench ruled that the dispute between BACSPL and ECGC was not a factor to be considered in renewal application.

On the matter of earning interest income through fixed deposit by WIIBPL on premium monies, the bench said that if Irda considered this to be a ground for cancellation of licence then the applicant company must be heard.