Brokers meet IRDA chairman

Chennai: Upset over the July notification that allows 5 per cent special discount on premium to customers, a delegation led by Bharat J Boda, president, Insurance Brokers Association of India (IBAI), has expressed its strong concern to C S Rao, chairman, Insurance Regulatory and Development Authority (IRDA).

The brokers contend that the notification has put a question mark over the future of 90-plus insurance broking companies.

IRDA, after receiving representations from various players (insurers, policyholders and chambers of commerce), suspended its May notification that dispensed with the 5-per cent discount on non-life premium if the business is placed directly with the general insurance companies.

The broking community argues that the Indian customers will be deprived of value-added professional risk management services if broking is not encouraged and allowed to thrive. "The incidental additional cost to insurance companies in the short term will be offset through higher premium generation and the growth of the insurance industry as a whole."

It is said that IRDA will come out with another notification on the subject after hearing all the stakeholders.