IBAI votes out its president Sanjay Kedia, elects five new faces as directors
IBAI's 15-member board of directors, have chosen Sumit Bohra as the new the new president of the association. After voting out some existing directors who were seeking re-election, the brokers had elected five new faces as directors for three years,. They are Sundaram Venkatavaradan of Abhivridhi Insurance Brokers. Rashmi Ravi Iyer of Global Insurance Brokers, Sandeep Dadia of Aditya Birla Insurance Brokers, Mohan Sriraman of Paavana Insurance Brokers, Surender Kumar Tonk of Advance Life Insurance Brokers
In a high drama, the Insurance Brokers Association of India(IBAI), the official representative body with over 480 insurance brokers, has voted out its president Sanjay Kedia on Sep 24 from the directorship of the body and consequently its 15-member board of directors, have chosen Sumit Bohra as the new the new president of IBAI.
Kedia, country head and CEO of Marsh India Insurance Brokers, where world’s largest insurance broker Marsh has 49 per cent, has been the president pf IBAI since 2015 and was seeking re-election to continue as one of directors of the IBAI that would have enabled him to continue as the president of the influential brokers’ body for another three years.
Surprisingly, he lost the election along with the honorary secretary of the IBAI, Vijay Rampal. Another senior broker who also lost the election to continue as the one of directors of IBAI was V. Ramakrishna, the founder of Hyderabad based India Insure Risk Management and Insurance Broking Services Private.
After rejecting some existing directors who were seeking re-election, the brokers had elected five new faces as directors for three years,.
They are Sundaram Venkatavaradan of Abhivridhi Insurance Brokers,Rashmi Ravi Iyer of Global Insurance Brokers, Sandeep Dadia of Aditya Birla Insurance Brokers, Mohan Sriraman of Paavana Insurance Brokers, Surender Kumar Tonk of Advance Life Insurance Brokers .
Arvind Kumar Khaitan of Salasar Services (Insurance Brokers) was the only director who succeeded in getting re-elected to continue as one of the directors of the IBAI for another three years.
``It was a kind of revolt of brokers against some of the long-serving functionaries of the IBAI that led to their ousters through ballot box. The brokers now want a complete overhaul in the way their representative body functions to serve the larger interest of the profession and the industry,’’ said industry observers.
To-day, over 30 per cent of India’s general insurance business, around Rs 2 lakh trillion in 2019-20, are placed through the brokers.
Last year, the government had allowed 100 per cent foreign direct investment(FDI) in the Indian insurance intermediaries industry including broking..
The move was opposed by the IBAI as it would be allowing foreign brokers, with superior muscle power, to trample upon the the domestic insurance brokers
However, no international brokers, including those who have already joint ventures in the country for years, have set-up operations with full ownership till now..
Along with Marsh, Willis,which has recently been taken over by Aon,Howden, and UIB are present in India through joint ventures.
Sources point that Marsh had undertaken a valuation exercise of its business in India,to buy out multiple stake holders, who hold 51 per cent in the Indian joint venture.
Kedia holds 10 per cent in the Indian JV.
Due to Covid-19 pandemic, the election at the IBAI was conducted, on Sept 24, through the e-voting facility provided by Central Depository Services (India) Limited (CDSL) and for the first time,, the facility for appointment of proxies for casting their votes by the members was not be available as physical attendance of members had been dispensed with.