IRDAI vide Order bearing reference number: IRDAl/INT/ORD/MISC/94/06/2024 dated June 14, 2024, issued an Order in the matter of M/s. Billionbrains Garage Ventures Private Limited (“Corporate Agent”) with respect to the Show Cause Notice dated February 23, 2024, issued by the Authority for the violation of the following regulations:
1. Violation of Reg. 22(1) of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
2. Violation of clause I(ii)(b) of Schedule V read with Regulation 28 of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
The observation/ 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(1) of IRDAI (Registration of Corporate Agents) Regulations, 2015.
An applicant desires to become a corporate agent shall disclose to the Authority at the time of filling application all material facts relevant for consideration of application, on its own. In case of any change in the information provided for consideration of their application, subsequent to filling of application or during the processing of application, such change shall be disclosed to the Authority, voluntary by the Applicant, for consideration of the Authority.
The Corporate Agent had complete knowledge of the scheme of amalgamation filed with the NCLT even before filing the application and during the process of the application. However, the same was not informed to the Authority and hence the Corporate Agent is violation of the provisions of Regulation 22(1) of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
Warning and Direction
Based on the submissions of the Corporate Agent,
The Authority has imposed a penalty of Rs. 5 lakh for the violation.
2
Violation of Clause I(ii)(b) of Schedule V read with Regulation 28 of IRDAI (Registration of Corporate Agents) Regulations, 2015.
The Authority may suspend or cancel the registration of a Corporate Agent for any one or more of the following reasons:
b) Furnishes wrong or false information; or conceals or fails to disclose material facts in the application submitted for obtaining a registration.
The Corporate Agent vide Letter dated November 09, 2023, submitted their application to surrender of CoR with the Authority wherein it had been informed that the Corporate Agent has not commenced any business activity as Corporate Agent and no policy has been issued through the CoR.
The Authority has not imposed any charges with respect to violation of Clause I(ii)(b) of Schedule V read with Regulation 28 of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
The Authority has directed the Corporate Agent to:
a. Remit the penalty of Rs. 5,00,000/- (Rupees Five Lakh only) within a period of 45 days from receipt of this Order.
b. The Corporate Agent shall confirm compliance in respect of the decisions, within 21 days from the date of receipt of this order.
c. If the Corporate Agent feels aggrieved by this Order, an appeal may be preferred to the Securities Appellate Tribunal, Mumbai as per the provisions of Section 110 of the Insurance Act, 1938.
A copy of the Order is attached for your ready reference.
Source category: IRDAI
Attachments
- /2024/405_Final_Order_in_the_matter_of_Billionbrains_Garage_Ventures_Private_Limited.pdf
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