IRDAI issued an Order bearing reference number: IRDAI/INT/ORD/MISC/42/02/2024 dated February 22, 2024, in the matter of M/s. Dealmoney Securities Pvt. Ltd. (“Corporate Agent or CA”) with respect to the on-site inspection conducted from September 29, 2021, to November 03, 2021.
The observations/ issues raised by the Authority and decisions on these observations are summarized hereunder for reference:
Charge No
Violation
Observations of the Authority
Decision of the Authority
1
Violation of Regulation 22(2) of IRDAI (Corporate Agents) Regulations, 2015
Corporate Agent that holds a valid registration shall, subsequent to the issuance of registration, disclose, to the Authority voluntarily, any change in material facts, based on which the registration was made to them, within a reasonable time but not later than 30 days from happening of such change.
Corporate Agent has not intimated about the pending disputes, information regarding FIR filed against the director of CA, information regarding resignation of CEO and Director – Mr. Dishant Sagwaria.
The Authority has imposed a penalty Rs. 1 crore for the violation period exceeding 100 days.
2
Violation of Clause II, Sub-clause 3 (ii) (o) of the Schedule III Code of Conduct of Corporate Agents Regulations, 2015.
As per the above clause, no corporate agent/principal officer/specified person shall engage, encourage, enter into contract with or have any sort of arrangement with any person other than a specified person, to refer, solicit, generate lead, advise, introduce, find or provide contact details of prospective policyholders in furtherance of the distribution of the insurance product.
Corporate Agent has availed the services of distribution of Insurance Product from the facilitator after the termination for a period exceeding 100 days.
The Authority has imposed a penalty Rs. 1 crore for the violation period exceeding 100 days.
3
Violation of Regulation 22 (5) IRDAI (Registration of Corporate Agent) Regulations, 2015
The Corporate agent shall disclose to the Authority the details of its offices in which they propose to distribute insurance products and details of Specified Persons along with their certificate number issued by the Authority. Further, any opening or closure of an office by a corporate agent shall be informed to the Authority. The Authority may seek further information as it deems appropriate.
The Corporate Agent had failed to inform the Authority with respect to the date of closure of its Kolkata Office.
Based on the submissions of the insurer, no charge is pressed.
4
Violation of Clause II, Sub-clause 3 (ii) (l) of the Schedule III Code of Conduct of IRDAI (Registration of Corporate Agents) Regulations, 2015.
No corporate agent/principal officer/specified person shall undertake multi-level marketing for soliciting and procuring of insurance products.
It was observed by the Authority that an entity i.e. M/s P.P. Enterprises Ltd was a sub-broker of the CA was indulged in multi-level marketing.
Based on the submissions of the insurer, no charge is pressed.
The Authority has directed the Insurer to:
1. Remit the penalty of Rs. 2,00,00,000/- (Rupees Two Crore only) within a period of 45 days from receipt of this Order.
2. Prohibits the M/s Dealmoney Securities Private Limited from the Insurance market, from applying for registration as ‘Insurance intermediary’ and from soliciting insurance under the Group Insurance Guidelines of the Authority, directly or indirectly, for a period of three years from the date of this order.
3. S ubmit an Action Taken Report to the Authority on the direction given within 6 months from the date of the Order.
A copy of the order is attached for your ready reference.
Source category: IRDAI
Attachments
- /2024/358_Order_in_the_matter_of_M_s__Dealmoney_Securities_Private_Limited.pdf
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