IRDAI Slaps Rs.2 Crore Fine On HDFC Life For Violating Rules
Orders it to rectify the identified deficiencies and ensure compliance with regulatory standards
By: : Ajay Singh
Update: 2024-08-02 03:30 GMT
IRDAI Slaps Rs.2 Crore Fine On HDFC Life For Violating Rules
Orders it to rectify the identified deficiencies and ensure compliance with regulatory standards
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of Rs.2 crore on HDFC Life for violating the Protection of Policyholders' Interest Regulations, 2017.
The fine was levied after the IRDAI’s onsite inspection in September 2020, covering the Financial Years 2017-18, 2018-19, and 2019-20.
While Rs.1 crore was levied for issues policyholders' protection interests, the other half was for irregularities on outsourcing services undertaken by the company and payment of commission, remuneration, or reward for solicitation of insurance business.
The Authority instructed the insurance provider to adhere to the guidelines within a stipulated timeframe. It was ordered to rectify the identified deficiencies and ensure compliance with regulatory standards.
The IRDAI is a statutory body established by the Insurance Regulatory and Development Authority Act, 1999, to supervise and develop India's insurance sector. Its mission is to protect policyholders' interests and promote the industry's orderly growth.