The Insurance Regulatory and Development Authority (IRDA) has cancelled the corporate agency license of Abira Insurance Services Ltd—a group concern of Golden TrustFinancial Services—due to violation of rules mentioned by the regulator.
Corporate agency license was granted to Golden Trust Financial by LIC of India on 06 October2006 which was valid up to 05 October 2009. The same set of individuals belonging to Golden Trust Group had floated Abira Insurance and obtained another corporate agency license on 20 July 2009 from Max New York Life Insurance without disclosing about insurance related activities of any of the members of its group. According to IRDA, this amounts to violation of Clause 5of guidelines on licensing of corporate agents.
Corporate agent Abira Insurance denied the charges and stated that it is an independent entity without belonging to any group and exclusively engaged in distribution of insurance products of Max New York Life. On examination of reply of Abira and other related documents, it was observed that the following three corporate agencies licenses—Golden Trust Financial Services, Golden Trust Multi Services & Abira Insurance—have been obtained from LIC and Max New York Life.