IRDAI – Final Order dated 22.2.2024 prohibiting Confiance International Reinsurance Brokers Malaysia for two years from Indian Insurance Market –
IRDAI – Final Order dated 22.2.2024 in the matter of Confiance International Reinsurnance Brokers Malaysia under Section 14(1) of the IRDA Act, 1999 – Prohibition from Indian Insurance Market for two years –
On 21.12.2018, TATA-AIG made complaint in respect of arrangement reinsurance of its crop insurance risk through Unison. It was found that Confiance and M/s. Globe Master Consultants, Jaipur (GMC) were involved in non-placement of reinsurance of crop insurance risk of TATA-AIG with foreign insurers and issuance of forged reinsurance slips to Unison.
By the order dated 8.1.2020 against Confiance and GMC, the IRDAI issued directions not to engage in any business activity with Confiance and its Directors were also barred from doing insurance / reinsurance business in India.
However, the said order was set-aside in appeal by the SAT.
Show cause notice dated 27.12.2021 was issued on six grounds. Confiance submitted its reply.
After considering the reply and submissions, it was HELD that the cession of reinsurance premium, insurance of the forged reinsurance slip and subsequent refund of the reinsurance premium by Confiance constitutes a serious and grave violation. The actions of Confidance in reinsurance transaction caused to TATA-AIG in India which could have potential loss to the insurer and its policy holders. It is of the considered view that the actions were deliberate and harfum, it had made no efforts to clarify its stance and simly returned premium which in turns the premium which proves that the Confiance has not exercised due care and diligence by placing the risk with the foreign reinsurers and issued forged reinsurance slips to the Indian Reinsurance Broker.
The Authority has passed the final order prohibiting Confiance from the Indian Insurance market and directions to others not to engage with Confiance, directly or indirectly, in whatsoever manner, for a period of 2 years, in both the cases.
