CCI: Regulatory Functions of IRDAI are Outside the Ambit of Competition Act, 2002

CCI: Regulatory Functions of IRDAI are Outside the Ambit of Competition Act, 2002

The Competition Commission of India (CCI) has refused to interfere in Insurance Regulatory and Development Authority of India’s (IRDAI) regulatory functions, disposing off an information case alleging anti-competitive arrangement between insurance regulator and the Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA).

The informant- Shrikant Ishwar Mende was aggrieved by the alleged anti-competitive arrangement between IRDAI and IIISLA, which resulted in non-renewal of his license to act as Surveyor and Loss Assessor by IRDAI.

As per the informant, IRDAI had created a statutory monopoly in favour of IIISLA by mandating the membership as an eligibility criterion for grant and renewal of licenses and IIISLA had abused its dominant position by withholding the grant of membership due to non-payment of past dues of annual subscription to IIISLA.

IIISLA is a body promoted by IRDAI in the discharge of its functions under the IRDAI Act. Membership of IIISLA was made mandatory by IRDAI for grant and renewal of licence for Surveyors and Loss Assessors.

The CCI noted that it was apparent that IRDAI is a statutory body created under the IRDAI Act, 1999 and IIISLA is a body promoted by IRDAI in the discharge of its functions under Section 14(2) (k) of the IRDAI Act, 1999. Further, membership of IIISLA has been made mandatory by IRDAI for grant and renewal of licenses for Surveyors and Loss Assessors.

In this regard, the commission observed, “Such functions, being regulatory in nature, are not per se amenable within the jurisdiction of the Commission.”

The CCI recalled that the Delhi High Court in its judgement dated 2 June, 2023 in the case of Institute of Chartered Accountants of India vs. Competition Commission of India & ors., had observed that CCI’s power is for regulating of markets and it does not extend to addressing any grievance regarding arbitrary action by any statutory authority.

Resultantly, the Commission was of the opinion that the alleged anti-competitive conduct by the IRDAI was outside the ambit of the provisions of the Act and no case of contravention of the provisions of the Act was made out.

Accordingly, the Commission in terms of the provisions of Section 26(2) of the Competition Act, 2002 closed the matter.