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Insurance Regulatory and Development Authority of India (IRDAI) has revoked a prior order that had suspended the corporate agent licence of R K Live Well Assurance.
IRDAI had given this suspension order in October 2017. This, the regulator said, was on the basis of violations of the norms under the Registration of Corporate Agents Regulations, 2015. It further said the company had failed to disclose proceedings initiated against them by another government body within a stipulated time.
It pertains to a case in the Registrar of Companies (ROC), NCT of Delhi and Haryana which struck off the name of the company from ROC. This was due to non-filing of the returns to ROC.
When IRDAI came to know of this, it suspended RK Live Well Assurance’s certification of registration without notice.
As per Regulation 14 (jii) of the Corporate Agent Regulations, an agent has to inform IRDAI in writing immediately if there is any material change in the information submitted. The ROC had struck off the name of the company, which is a material change. Non-disclosure of this was considered a violation and therefore their licence was suspended.
Section 22 (3) of the Corporate Agents Regulations 2015 has said a corporate agent has to disclose to IRDAI any proceedings initiated against them by other regulatory or government bodies within a reasonable time but not later than 30 days from the initiation of such proceedings. IRDAI said this was also a factor in ordering the suspension.
However, RK Live Well Assurance had informed IRDAI in February 2018 that the National Company Law Tribunal (NCLT) has reinstated the name of the company. Further, the NCLT Delhi bench had also asked the company to pay Rs 25,000 to Prime Minister’s Relief Fund and restored the name of the company in the Registrar of Companies (ROC).
Following this, IRDAI has said the company is no longer in violation of the regulations. Therefore, the suspension order was revoked.
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