IRDA cancels PNB Principal Insurance Broking licence

NEW DELHI: Insurance regulator IRDA today said it has cancelled the licence of PNB Principal Insurance Broking pursuant to their request for surrender.

"Pursuant to the request made by the Broker for surrender of Broker licence, the Authority hereby cancels the Direct Broker Licence granted to PNB Principal Insurance Broking," IRDA said in a statement.

This is pursuant to the restructuring of the insurance broking business of state-run Punjab National Bank, under which PNB bought out the stake of its two partner.

However, the other local partner Vijaya Bank would remain with the joint venture.

The Delhi-based public sector lender PNB will also buy out Principal and Berger Paints stake of 26 per cent and 25 per cent, respectively in a proposed insurance broking company, which also did not get off the ground.

The Insurance Regulatory and Development Authority (IRDA) said that the shareholders of PNB Principal Insurance Broking applied to surrender its license on November 24, 2010.

IRDA said PNB Principal Insurance Broking would continue to provide service to its clients for the next six months and would "make suitable arrangements with another licensed broker to service the contracts already concluded".