NEW DELHI: The Insurance coverage Regulatory and Growth Authority of India (IRDAI) has imposed a penalty totaling Rs 2 crore on HDFC Life for violating varied IRDAI laws, the corporate knowledgeable the alternate in a submitting.
Based on the corporate, the penalty was levied after an onsite inspection carried out by IRDAI in September 2020, masking the monetary years 2017-18, 2018-19, and 2019-20.
The penalty of Rs 1 crore was levied for points associated to the safety of policyholders‘ pursuits. Moreover, a penalty of Rs 1 crore was imposed for irregularities regarding the outsourcing of providers by the corporate.
“IRDAI issued an Order dated August 01, 2024, levying a penalty in combination of Rs. 2 crore for violation of provisions of relevant IRDAI Laws: Penalty of Rs.1 crore (Rupees One crore) with respect to sure points pertaining to Safety of Policyholders’ Curiosity; Penalty of Rs.1 crore (Rupees One crore) with respect to sure points of Outsourcing of providers undertaken by the Firm and fee of Fee or Remuneration or Reward for solicitation of insurance coverage enterprise,” stated the corporate on Thursday in its submitting with the alternate.
Along with the monetary penalties, IRDAI has issued additional instructions and advisories to the insurance coverage supplier HDFC Life. The corporate has been instructed to stick to those pointers inside a stipulated timeframe to rectify the recognized deficiencies and guarantee compliance with regulatory requirements.
The Insurance coverage Regulatory and Growth Authority of India (IRDAI) is a statutory physique established by the Insurance coverage Regulatory and Growth Authority Act, 1999 (IRDA Act, 1999) to oversee and develop India’s insurance coverage sector. IRDAI’s objective is to guard policyholders’ pursuits and promote the business’s orderly progress.
Based on the corporate, the penalty was levied after an onsite inspection carried out by IRDAI in September 2020, masking the monetary years 2017-18, 2018-19, and 2019-20.
The penalty of Rs 1 crore was levied for points associated to the safety of policyholders‘ pursuits. Moreover, a penalty of Rs 1 crore was imposed for irregularities regarding the outsourcing of providers by the corporate.
“IRDAI issued an Order dated August 01, 2024, levying a penalty in combination of Rs. 2 crore for violation of provisions of relevant IRDAI Laws: Penalty of Rs.1 crore (Rupees One crore) with respect to sure points pertaining to Safety of Policyholders’ Curiosity; Penalty of Rs.1 crore (Rupees One crore) with respect to sure points of Outsourcing of providers undertaken by the Firm and fee of Fee or Remuneration or Reward for solicitation of insurance coverage enterprise,” stated the corporate on Thursday in its submitting with the alternate.
Along with the monetary penalties, IRDAI has issued additional instructions and advisories to the insurance coverage supplier HDFC Life. The corporate has been instructed to stick to those pointers inside a stipulated timeframe to rectify the recognized deficiencies and guarantee compliance with regulatory requirements.
The Insurance coverage Regulatory and Growth Authority of India (IRDAI) is a statutory physique established by the Insurance coverage Regulatory and Growth Authority Act, 1999 (IRDA Act, 1999) to oversee and develop India’s insurance coverage sector. IRDAI’s objective is to guard policyholders’ pursuits and promote the business’s orderly progress.
