IRDA reverses earlier order on insurance brokerage
Hyderabad: The Insurance regulatory and development authority (IRDA) has decided to reverse an earlier decision regarding insurance brokerage.

The IRDA under its new chairman, Mr C.S. Rao has suspended a notification dated May 30, 2003 issued by the earlier chairman Mr N. Rangachary, which gave a special discount up to 5 per cent on the face of the policy to businesses directly placed with the insurers and emanating from non-public sector entities for tariff lines of general insurance business.

In a circular dated July 16, the IRDA has said: "Arising out of representations received from insurers, insured and the chambers of commerce in respect of the above decision (May 30 notification), the authority has now decided to keep the said notification under abeyance with immediate effect".

Brokers said the new IRDA move would dampen prospects of insurance brokerage and hit the brokers hard.

Post-May 30 guidelines, the IRDA had accorded licences to more than a dozen insurance brokers across the country after collecting a licence fee.
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