Complaint of bribe given in obtaining International Re-insurance Contract
International Re-insurance business – Brokerage – Complaint of bribe given in obtaining International Re-insurance Contract – Violation of Section 41(1) of Insurance Act, 1938 & Clause 37(1) of IRDA (Insurance Brokers) Regulations, 2013 – IRDAI dismissed the complaint – SAT ordered fresh inquiry
Important Judgment dated 24.3.2023 of the Supreme Court of India
he appellant and the respondent no.1, both, are in the Insurance and Re-Insurance business. Jagson International Limited (Jagson) is in oil exploration and the insurance is mainly with the exploration equipments.
The respondent no.1 had business of insurance / re-insurance with Jagson between 2002 to 2012. It was found from the pleadings that there was increase in the number / size of rigs of Jagson after 2012 requiring enhanced insurance coverage.
On 11.8.2015, the respondent no.1 made a complaint against the appellant in adopting illegal means of bribe to Jagson for obtaining the brokerage contract.
On 19.9.2017, the High Court of Andhra Pradesh (at that time it was for the States of Telangana and Andhra Pradesh) in the writ petition directed IRDA to consider the complaint by following due process.
On 9.1.2018, the Non-Life Member of IRDA recorded that no proof of evidence was brought by the respondent no.1 to prove the allegations and the Authority could not proceed further with the complaint.
By the Order dated 16.3.2018 of the Securities Appellate Tribunal allowed the appeal of the respondent no.1, set-aside the order dated 9.1.2018 of the IRDA, and directed the IRDA to re-visit the complaint & to pass a fresh order.
HELD – that barring a statement of a telephonic conversation of Managing Director of the respondent no.1 in which the respondent no.5 was alleged to have mentioned that the appellant had agreed to pay money to obtain the business, there was no cogent material showing that such illegality was committed by the appellant and to warrant a detailed investigation. It was held that the fact finding body i.e. IRDA had already come to its conclusion on lack of evidence and there was no occasion for SAT to interfere with the order of IRDA. The remand order of SAT was quashed, the Order of IRDA was upheld and the Civil Appeals were allowed.
Marsh India Insurance Brokers Private Limited Vs. M/s. Atkins Special Risks Ltd and others (Civil Appeal Nos.4678-4681 of 2018) (Reportable)
