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The Insurance Regulatory and Development Authority (Irda) on Tuesday issued a warning to the public against payment of money as insurance premium to entities claiming to be insurers or insurance agents.
It advised citizens to check the entity's veracity and the insurance arrangement promised, before making any such payment.
"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 Irda in the notice.
It said an entity could function as an insurer or an insurance intermediary only after a licence/certificate of registration from Irda 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.
