IRDAI has imposed a penalty of Rs.20 lakh on ICICI Prudential Life Insurance for making additional pay outs to their corporate agents and incentivizing sales persons with foreign trips.
The insurance regulator has found that the company had made an additional pay out to their corporate agents, which were over and above the stipulated commission structure. The company had paid money towards marketing and advertisement expenses to its corporate agents. Further, the insurer had also incentivized employees of corporate agents with foreign trips and gifts on achieving certain targets.
In addition, IRDAI found that ICICI Prudential Life Insurance has made payment to a few master policyholders under group insurance policies towards marketing support.
In another case, IRDAI has imposed a fine of Rs.10 lakh on PNB MetLife Life Insurance for delaying claim settlement and soliciting policies through unauthorized agents.
IRDAI has asked both the insurers to pay the penalty amount within 15 days.