IRDAI vide its order bearing no. IRDAI/INT/ORD/MISC/199/11/2023 dated November 10, 2023, has issued an order against M/s Centcart…

IRDAI vide its order bearing no. IRDAI/INT/ORD/MISC/199/11/2023 dated November 10, 2023, has issued an order against M/s Centcart Insurance Broking Services Private Limited (“Broker”).

Issue:

The Broker had not filed the second Half-yearly returns for FY 2019-20, and the first and second Half-Yearly returns for FY 2020-21 resulting in a violation of Regulation 39 (1) of IRDAI (Insurance Brokers) Regulations, 2018. The Authority has levied three Charges on the Brokers which are as follows:

Charge No 1:

Regulation 39 (1) of the Regulations require the insurance intermediaries to file periodical returns prescribed under the Regulation duly certified by their auditor, which the Broker had violated. The IRDAI has cautioned the Broker to exercise prudent care and diligence in filing the periodical returns.

Charge No 2:

IRDAI is of the opinion that the Broker did not act prudently at the occurrence of the technical issue in BAP software, in violation of Regulation 39 (2) of the Regulation. The Broker has been cautioned to ensure the filing of periodical returns within the time specified in the Regulation.

Charge No 3:

Sub-regulation 3 of the Regulation says that:

“39(3) any false or wrong certification or concealment of facts in the certificate submitted to Authority shall arises penal action as specified under these regulations. ”

The IRDAI, while analysing the particular sub-regulation, is of the opinion that the Chartered Accountant Certificate submitted by the Broker to the Authority, has been forged and amounts to grave misconduct. Accordingly, a penalty of INR 3, 00, 000 has been imposed on the Broker for the violation of the sub-regulation 3 of Regulation 39 of the Regulation.

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