The Insurance Regulatory and Development Authority of India (“IRDAI/Authority”) has issued an order in the matter of M/s Omega Insurance Broking Services Private Limited (“Broker”) vide Order Ref. No. IRDAI/INT/ORD/MISC/71/5/2026, dated May 21, 2026 (“Order”).
The Order has been passed pursuant to a Show Cause Notice (“SCN”) dated February 24, 2026 bearing Ref. No. IRDAI/INT/BRK/DB 809/20/SCN, and subsequent submissions made by the Broker dated March 13, 2026. Also, the response of broker declining personal hearing was made on March 20, 2026.
Background
The matter arose during the review of the Broker’s application for renewal of its Certificate of Registration (“CoR”) as a Direct (Life and General) Insurance Broker by the Authority vide Application bearing URN No. BR-RNW-14441 2024 dated March 25, 2024. Renewal was sought for the period May 11, 2024 to May 10, 2027 in accordance with Regulation 14 of the IRDAI (Insurance Brokers) Regulations, 2018 (hereinafter referred to as “the Regulations”). The CoR was renewed on 10th May, 2024.
During the course of such review, the Authority identified certain instances of potential non-compliance with the IRDAI (Insurance Brokers) Regulations, 2018 and sought clarifications from the Broker. Subsequently, the Authority issued a Show Cause Notice dated February 24, 2026.
The observations raised by the Authority and decisions thereon are summarised below for your reference:
| Charge | Violation | Observation of the Authority | Decision of the Authority |
|---|---|---|---|
| 1 | Regulation 25(2) read with Clause (1) of Schedule II (Form T)… |
| Warning The Authority held that the Broker had violated Regulation 25(2) read with Schedule II (Form T) by failing to obtain prior approval before effecting changes in shareholding. However, considering the Broker’s submissions, including that the omission was an inadvertent administrative oversight and that corrective compliance mechanisms had been implemented, the Authority issued a warning and advised strict compliance going forward. |
| 2 | Violation of Regulation 22(1) of the Broker Regulations… | The Authority observed that the Broker’s net worth had fallen below the minimum prescribed threshold of ₹50 lakh on multiple occasions. The Broker’s net worth remained negative from March 2023 to March 2024 and later increased marginally to ₹52.16 lakh in March 2025. | Warning The Authority held that the Broker had remained non-compliant with the minimum net worth requirements for a prolonged period. However, taking note of the Broker’s explanation regarding operational losses and its subsequent restoration of net worth levels, the Authority issued a warning and directed the Broker to ensure continuous compliance with the regulatory requirements. |
Directions
- The Order be placed before the Board of Directors of the Broker at its next immediate Board Meeting;
- The Board to take note of the violations and initiate appropriate corrective and preventive measures;
- A copy of the relevant extracts of the Board minutes be submitted to the Authority.
The Authority has further clarified that the Order is appealable under Section 110 of the Insurance Act, 1938 and the Broker may prefer an appeal before the Securities Appellate Tribunal (“SAT”).
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