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C.R. Sukumar

Hyderabad , March 30

THE Insurance Regulatory and Development Authority (IRDA) has suspended the licence of the New Delhi-based composite brokerage firm - Corporate Risks India Pvt Ltd (CRIPL), invoking for the first time powers vested under the regulations.

In a communique to the industry participants, the IRDA Member, Mr Mathew Verghese, said, "under the powers vested by regulation 35 of IRDA (Insurance Brokers) Regulations, 2002, the Authority hereby suspends the Licence No. 135/CB-082/03 granted to Corporate Risks India Private Ltd with immediate effect."

According to IRDA sources, the authority had received a complaint alleging improper conduct in relation to placement of reinsurance liability risk on account of Ranbaxy Laboratories Ltd.

IRDA found that the explanation provided by CRIPL in response to the complaint was not satisfactory.

There was also sufficient ground to believe that the insurance broker had acted improperly on technical issues as well as on matters relating to due diligence and truthful conduct of business, sources said.

Apart from deciding to suspend the licence of CRIPL, the authority also decided to appoint its Deputy Director, Mr Arup Chatterjee, as the Enquiry Officer under Regulation 37 of the IRDA (Insurance Brokers) Regulations, 2002 to enquire into the case. Mr Chatterjee will report back to the authority within six weeks. The Enquiry Officer would also look into other cases that might be brought to the notice of IRDA in the immediate future, sources said. Further, sources said CRIPL was directed to confirm suspension of all insurance broking activities with immediate effect until completion of the enquiry and decision on the report of the Enquiry Officer.

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