On Tuesday, the Insurance Regulatory and Development Authority (IRDA) issued a notice advising general public not to buy insurance products from an unlicenced entity or insurer. The insurance watchdog in a circular said, “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."
“It has come to (our) notice that 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,“ said the statement.
Furthermore, the statement said, an entity could function as an insurer or an insurance intermediary only after a licence/certificate of registration from the Insurance Regulatory and Development Authority under the relevant provisions of the Insurance Act, 1938, and the IRDA Act, 1999, for such a business.
Only such a licensed entity can offer an insurance product and collect/charge an insurance premium. The statement also advised the general public to check the truthfulness of the entity as well as the insurance arrangement promised, before making any payment towards insurance premium/consideration.
“It has come to (our) notice that 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,“ said the statement.
Furthermore, the statement said, an entity could function as an insurer or an insurance intermediary only after a licence/certificate of registration from the Insurance Regulatory and Development Authority under the relevant provisions of the Insurance Act, 1938, and the IRDA Act, 1999, for such a business.
Only such a licensed entity can offer an insurance product and collect/charge an insurance premium. The statement also advised the general public to check the truthfulness of the entity as well as the insurance arrangement promised, before making any payment towards insurance premium/consideration.
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