Irda bans 4,261 corporate agents

The insurance Regulatory & Development Authority (Irda) has banned over 4,261 corporate agents out of the total 7,000 in the country. The regulator said because these agents failed to renew their licences they are not authorised to sell policies from March 31, 2010.

The regulator cautioned insurance companies and the general public from dealing with these agents or getting business through them.

Earlier, the regulator had asked insurance companies to carry out regular inspections of corporate agents. Irda had received complaints against the agents and said in many occasions one agent is working under different names.

The list of banned agents includes HDFC Bank for general insurance, Oswal Consultancy, India Bulls Insurance Advisors in Mumbai; Prosoft Technologies and Tangent in Bangalore; Rishab Investments and Cosmos Financial Services in Chennai; Pact Brokerage and Atluri Travels in Hyderabad.

“These corporate agencies were due for renewal on or before March 31, 2010 but have not been renewed till date. All these agency licences have been withdrawn,” Irda said.

According to a senior Irda official, the policies purchased after March 31 and till date could be valid and the implications are being worked out.

Business is likely to hit as most life and general insurers including Life Insurance Corporation of India had engaged these agencies. The Irda is in the process of verifying the quantum of business done through these agencies after March 31.