New Delhi: Fair trade watchdog CCI has rejected charges that insurance regulator Irda's rules, which grant of corporate agency license to banks to sell insurance products, are anti-competitive.
In an order, the Competition Commission of India (CCI) said that "the issue of abuse of dominance by Irda does not arise and no case of contravention of the provisions...Of the (Competition) Act is made out against Irda and the information is ordered to be closed forthwith".
A complaint filed with the Commission had alleged that banks in insurance retailing sector were imposing unfair and discriminatory conditions on financed clients to purchase insurance product from them, indulging in predatory pricing, restricting and denying market access to independent insurance agents, among others.
As a result, the complainant had asked the fair trade watchdog to pass directions to Insurance Regulatory and Development Authority (Irda) to repeal the regulation.
CCI noted in the case that Irda was discharging its regulatory and statutory mandate and did not fall within the purview of Competition norms.
"Regulatory actions are not per se amenable to the jurisdiction of the Commission," CCI said in the order dated September 12.
Under the Irda norm, banks have been granted corporate agency license to operate in insurance retailing.
It was believed that such retailing would raise competition which in turn benefits consumers in terms of increased access to insurance products, increase in the quality of services, among others.
