The Securities Appellate Tribunal (SAT) has asked the Insurance Regulatory and Development Authority of India (IRDAI) to pass a fresh order on a case involving alleged financial irregularities in awarding insurance broker contract to a broking firm.
The Securities Appellate Tribunal (SAT) has asked the Insurance Regulatory and Development Authority of India (IRDAI) to pass a fresh order on a case involving alleged financial irregularities in awarding insurance broker contract to a broking firm.
“We set aside the impugned order and direct IRDAI to entrust the matter to a competent officer other than P J Joseph, Member (non-life) for passing fresh order on the complaint filed by the appellant on merits and in accordance with law,” the SAT judgement said. The order was passed by Justice JP Devadhar, Presiding Officer who directed that the earlier order by PJ Joseph on disposing the complaint be looked at by another official.
The case pertains to a company Atkins Special Risks, which is incorporated in the United Kingdom is specialized in broking special risk insurance and re-insurance with core competency in Marine and Energy insurance.
During the years 2002 to 2012, they had provided international re-insurance cover to Jagson International. They have alleged in their submission to SAT thay this said firm and its officials demanded a cut from commission from 2010 which they declined. Post this, the reinsurance business was given to Marsh India Insurance Brokers.
The appellant has alleged that detailed investigation by a globally reputed investigating firm showed some alleged kickbacks given to the company by the broking firm.
They (appellant) added that a complaint was filed with IRDAi in August 2015. The appellant added that as no action was taken, appellant filed a writ petition in the Telangana and Andhra Pradesh High Court which was disposed of in September 2017 by directing IRDAI to consider the complaint filed by them.
However, after hearing the appellant, P J Joseph took a decision to dispose of the complaint by stating that the appellant has not submitted any documentary proof, material information or evidence in support of its contention.
“In our opinion, the impugned order passed by P J Joseph (non-life) virtually amounts to aiding and abetting corruption in the insurance business by the regulator which cannot be tolerated,” said the SAT judgement.
However, the judgement made it clear that SAT has not expressed any opinion on the merits of the complaint filed by the appellant.
