IRDAI has imposed a fine of Rs.10 lakh on Bajaj Allianz for paying higher commissions than what is permitted to its corporate agents. The insurance company gave incentives to corporate agents in the form of other expenses like advertising cost, infrastructure etc.
IRDAI norms restrict an insurance company from paying any amount other than the permitted agency commission, whether as administration charge, reimbursement of expenses, profit commission or any other form to corporate agents. Also, an insurer cannot reimburse its corporate agents for co-branded advertisements.
The insurance regulator has found that the insurer had paid an additional amount of Rs.55 crore to its corporate agents.
Meanwhile, the insurance regulator has imposed a fine of Rs.15 lakh on Shriram General Insurance for violating norms like soliciting business from unauthorized persons and extending heavy discounts on some of its policies.
IRDAI found that the company had solicited motor own damage and personal accident covers through unlicensed persons and entities. The insurance regulator has found 26 such instances.