Policies valid despite withdrawal of agency licences: IRDA

NEW DELHI: Insurance regulator IRDA today sought to assure customers that their policies would remain valid despite the withdrawal of licences of over 4,200 corporate entities, including HDFC Bank, Indiabulls Insurance Advisors and Indian Overseas Bank.

At the same time, IRDA Chairman J Hari Narayan said that the licences of the corporate agents would not be renewed with retrospective effect. Out of the 7,000 agents, IRDA withdrew licences of 4,261 agents, as they failed to renew them by March 31 this year.

"The licences of the corporate agents will not be renewed with retrospective effect. The insurance policies will remain valid...the respective insurance companies will assign another agent," Insurance Regulatory and Development Authority (IRDA) chief Hari Narayan told PTI.

IRDA on Tuesday evening cancelled the licences of 4,261 corporate agents, after failed to renew their policies in time.

"The clients (insurance customers) should not do business with them (4,261 corporate agents). They have not applied for renewal of licences, so there licences currently stands cancelled," IRDA chief said.

Besides HDFC Bank and the Indian Overseas Bank, other agents whose licences were not renewed by IRDA include Oswal Consultancy, India Bulls Insurance Advisors, Bharat Overseas Bank, Max Healthcare Institute, Indian Medical Association (Pune) and Edelweiss Capital.

While withdrawing the licences of corporate agents, IRDA had cautioned the public "not to transact any insurance business through them."