Irdai fines Deinon Risk Rs 10 lakh for acting as insurance intermediary

The firm did not have a valid registration with the insurance regulator

The Insurance Regulatory and Development Authority of India (Irdai) has imposed a penalty of Rs 10 lakh on Deinon Risk Services for acting as an insurance intermediary without having a valid registration with the insurance regulator of the country.

Deinon, which is into business support and risk consultancy, was playing an active part in foreign inward reinsurance placements, and was acting as an extended arm of PIIQ, a foreign insurance broker, for placing foreign inward reinsurance. “Though there is no bar on an Indian Insurer accepting foreign inward reinsurance placement directly from a foreign insurance broker, Deinon acting as an Indian representative of the foreign insurance broker, PIIQ, is unlawful”, Irdai observed.

This came to light when the insurance regulator received an email from the corporate insurance cell of Reliance Industries seeking the registration status of Deinon & M/s PIIQ Risk Partners, stating that they had been approached by Deinon, offering services in respect of the aviation insurance business.

Deinon submitted to Irdai that their activities are business analytics and business support, valuations, risk evaluation and studies and various other technological solutions to industry including the aviation insurance industry, which does not warrant registration with the insurance regulator.

However, Irdai observed that Deinon had offered access to Global Insurance Markets in Aerospace (Re) Insurance, which only a registered reinsurance/composite broker can do.