In a significant ruling, the Competition Commission of India (CCI) has refused to interfere in IRDAI’s regulatory functions, disposing off an information case alleging anti competitive arrangement between insurance regulator and the Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA).
The informant – ShrikantIshwarMende – was aggrieved by the alleged anti-competitive arrangement between IRDAI and IIISLA , which resulted in non-renewal of his licence to act as Surveyor and Loss Assessor by IRDAI.
As per the informant, IRDAI had created a statutory monopoly in favour of IIISLA by mandating the membership as an eligibility criterion for grant and renewal of licenses and IIISLA had abused its dominant position by withholding the grant of membership due to non payment of past dues of annual subscription to IIISLA.
IIISLA is a body promoted by IRDAI in the discharge of its functions under the IRDAI Act. Membership of IIISLA was made mandatory by IRDAI for grant and renewal of licence for Surveyors and Loss Assessors.
“Such functions, being regulatory in nature, are not per se amenable within the jurisdiction of the Commission as held by the Hon’ble Delhi High Court in its judgement dated 2-6-2023 in the case of Institute of Chartered Accountants of India vs Competition Commission of India &ors”, said a CCI order issued recently.
It maybe recalled that the Delhi High Court had last month ruled that regulatory powers exercised by statutory bodies are not subject to competition watchdog’s oversight.
Delhi High Court had highlighted that CCI’s power is for regulating of markets and it does not extend to addressing any grievance regarding arbitrary action by any statutory authority.
