Marsh India Insurance Broker has been fined Rs.1 crore by the IRDAI for withholding policyholder premiums.
The insurance regulator discovered that the insurance brokers failed to pay the premiums to the various insurers on time. In reality, in certain situations, the delay extended beyond 180 days from the date of premium receipt.
IRDAI regulations provide that the insurance broker must send the client-received premium amount to the insurance firms within 15 days. Should there be a delay, the broker must obtain the clients’ written consent. According to IRDAI data, the company has overpaid premiums in 826 cases totaling Rs. 1,253 crore over the course of three years.
This is the real example of ‘How are Insurance brokers regulated?‘ & Now you know ‘who regulated insurance brokers of India‘
Answer is IRDAI
