RDAI has recently cancelled the licence of SB Insurance Brokers. While announcing the decision, the regulator said that it was not in the interest of policyholders or the insurer to allow this broking company for continuing its operations in the industry.
IRDAI has taken the decision at the backdrop of the allegations of spurious calls being made and broker representing an insurance company rather than customers.
The regulator has also stated that that it has asked the broker to respond to the charges of the broker’s tele-callers identifying themselves as members of an insurance company rather than SB Insurance Brokers.
It has also been stated by IRDAI that the tenor and rhyme of the reply of the broker implied it was attempting to question the regulatory prescription that every broker has to identify himself to the client.
“The reply further attempts to justify the action of their personnel claiming themselves to be speaking from the office of the insurer. But both the arguments of the broker are untenable and cannot stand the scrutiny of law and regulations because of the fact that the customer is misled and is placed at a disadvantageous position,” said IRDAI in its order.
