The Hindu Business Line : Move to check discrepancies — IRDA gets tough with agents training institutes

AFTER taking action against erring broking firms, the Insurance Regulatory and Development Authority (IRDA) has now turned its attention on to the institutes that train insurance agents.

Finding discrepancies in several insurance agents training institutes, the regulator has decided to initiate a detailed inspection into the various irregularities. Pending completion of the inspection, the regulator has directed the training institutes to immediately stop training programmes.

IRDA sources told Business Line that the ban on training at these institutes would come into force from Saturday.

Sources said the officers at the regulatory body conducted surprise inspections at some IRDA-accredited insurance agents training institutes during the third week of last month.

At the time of the inspection of six centres of NIS Sparta Ltd located at Kanpur, Agra, Meerut, Bhiwani, Haridwar and Lucknow, IRDA officers found that these centres, being run on franchisee agreements, were not having the mandatory infrastructure, facilities and library etc. as required by the conditions of accreditation.

According to IRDA Member (Life), Mr T.K. Banerjee, "An enquiry is being conducted into the matter and it is hereby directed that these centres should not conduct any training programmes with effect from May 15, and all the other franchisee centres of the said institute shall refrain from taking any new batches after May 15, pending final outcome of this enquiry."

The IRDA officers also conducted similar inspection at the Kanpur centre of Taurus Institute of Insurance Training, which revealed several discrepancies including non-availability of proper records and library as required by the conditions of accreditation.

"An enquiry is being conducted in the matter and it is hereby directed that no training programme/ session shall be conducted at this centre with effect from May 15, pending final outcome of the enquiry," Mr Banerjee said in a communiqué to insurance industry participants.

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Move to check discrepancies — IRDA gets tough with agents training institutes