IRDAI has imposed a fine of Rs.10 lakh on SBI Life Insurance for violating various norms like soliciting insurance policies through unlicensed agents and getting new business from a corporate agent during expiry period.
The insurance regulator found that the company had acquired new business from its corporate agent called Bonanza Assurance Advisers even after the expiry of its license. Also, SBI Life had renewed the license of this corporate agents retrospectively.
Another key violation of SBI Life was soliciting business through unauthorized agents. Most of policies were sold through sales persons of the corporate agent.
IRDAI has asked SBI Life to pay the penalty amount within 15 days of receipt of the order.