Policies valid despite withdrawal of agency licences: IRDA

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.