Insurance Regulatory and Development Authority of India (Irda) has asked insurance companies not to do business with 884 corporate agents who have not filed their permanent account number (PAN) details with the sector watchdog.
"The insurers shall abstain from doing any business from these (884) corporate agents, until the PAN of the entities is registered in the portal by the insurers," the Irda said in a circular.
On July 11, Irda had asked all insurers to update the income tax PAN of their corporate agents on the agent licensing web portal before July 31, 2010.
Irda said that 884 corporate agents existing in Irda's Agemcy License Portal have not registered their PAN so far and asked the insurance companies to issue them a show cause notice.
"The insurers are advised to issue a show cause notice to the Corporate Agents... To furnish reasons for failure to produce the PAN and why the insurer should not recommend to the authority for the cancellation of their corporate agent license," the circular said.
The regulator has given the insurance companies September 30 deadline to complete the said formalities.
Earlier in June, out of the total 7,000 agents listed with the Irda, the watchdog had cancelled the licences of 4,261 corporate agents, after they failed to renew the policies sold by them in time (March 31, 2010).
"The clients (insurance customers) should not do business with them (4,261 corporate agents). They have not applied for renewal of licences, so there licences currently stands cancelled," Irda had said.