 "Irdai to make listing a must for large insurers")
Insurance Regulatory and Development Authority of India (Irdai) in its norms on non-compliance by brokers said there would be a graded approach to any violation.
It said that this was to simplify the application of penalties in case of non-compliance/ violation of regulations.
Irdai said that generally there would be a warning for first time non-compliance.
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Later, it said largely not undertaking placement of new business till such time the problem is rectified or for 2/4 months whichever is later for second time non-compliance will be there.
For third time non-compliance, Irdai will initiate steps for suspension/ cancellation of the license with the condition that the broker will not undertake placement of new business till such time the problem is rectified or 6 months whichever is later for third time non-compliance.
The regulator has also put greater onus on the Principal Officer to ensure compliance as he will be held personally responsible along-with the compliance officer.
