Stressing that monetary penalty is not the solution to ensure compliance, Irdai today revised norms relating to insurance brokering firms, under which repeat offences could lead to cancellation of licences.
The reworked graded approach to be followed in the case of non-compliance of Broker Regulations is based on the experience gained over the last six years.
The Insurance Broker Regulations were amended in December 2013 and new rules notified in January 2014, which are aimed at encouraging good behaviour among insurance brokers and foster better compliance.
"Generally, a warning is given for first-time non-compliance," it said. And in the case of second-time non-compliance, the firm can't undertake placement of new business till such time the problem is rectified or for 2-4 months, whichever is later.
Further, Irdai will initiate steps for suspension or cancellation of the licence "with the condition that the broker will not undertake placement of new business till such time the problem is rectified or 6 months, whichever is later for third time non-compliance".
However, if the regulator considers the violation committed by the insurance broker is grave, then it may initiate steps for suspension/cancellation of licence at the first stage itself.
The revised rules are intended to simplify application of penalties in the case of non-compliance or violation of regulations, Insurance and Regulatory Development Authority of India (Irdai) said in a notification.
In order to achieve the objective, Irdai said: "Imposition of monetary penalties is not the solution to encourage good behaviour and foster compliance."
Besides, if the broker financially benefited, then such benefits will be neutralised or set off by fines.
Announcing the launch of the new product, Parag Gupta
Chief Underwriting Officer, Bharti AXA General Insurance said, "As per industry projections, the two wheeler segment is expected to grow at CAGR of 10-12% till FY 2020. Additionally, as per IRDAI, approximately 75% of two wheelers are either uninsured or have lapsed insurance policies. With the two-wheeler segment poised for growth, coupled with a large consumer base with a break in policy, it's extremely important to introduce comprehensive two-wheeler plans that will encourage riders to not only buy insurance but also renew regularly. Based on our online poll we understood that the majority of riders either found renewals cumbersome or simply forgot to renew. In view of these insights, we realized a need to introduce a comprehensive 'buy & forget' type of two wheeler insurance policy. We are confident that our 'Two Wheeler Long Term' plan will cater to all the needs of a rider and create a strong foothold for us within the two-wheeler insurance category."
Bharti AXA has launched this product with its dealer and agent network pan-India and will soon launch this online on its website http://www.Bharti-axagi.Co.In
About Bharti AXA General Insurance:
Bharti AXA General Insurance Company Ltd is a joint venture between Bharti Enterprises, a leading Indian business group and AXA, a world leader in financial protection. The joint venture company has a 51% stake from Bharti and 49% stake from AXA Group. Bharti AXA General Insurance is the first organization in the GI Industry to receive dual certifications of ISO 9001:2008 & ISO 27001:2005 for its superior quality and information safety systems.
Presently, the organization has cashless facilities across 4,500 network hospitals, over 2,700 garages for motor claims and associations with 16+ TPAs pan India.
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