Only licensed insurer can offer insurance products: IRDA

India Infoline News Service | Mumbai |

Only licensed entity/ies (by IRDA) can offer an insurance product and collect/charge insurance premium towards consideration

The Insurance Regulatory and Development Authority (IRDA) is a regulatory body established by an Act of Parliament to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith, the IRDA said in a circular on Monday.

According to IRDA, a few entities under the banner of cargo carriers, couriers / logistic providers / freight forwarders / transporters or involved in similar trade are charging consideration from their clientele towards their contractual liabilities, using the terminology ‘insurance’, thus creating an impression that they are either insurance entities or arranging insurance on behalf of their clientele.

An entity can function as an insurer or an insurance intermediary only after obtaining a license / certificate of registration from the IRDA under the relevant provisions of the Insurance Act, 1938 and the IRDA Act, 1999 for carrying on such business.
Only licensed entity/ies (by IRDA) can offer an insurance product and collect/charge insurance premium towards consideration, the circular added.

The general public is also advised to check the veracity of the entity as well as the insurance arrangement promised, before making any payment towards insurance premium/consideration.

 

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