IRDA wants the insurance industry to be more transparent.
IRDA has penalized various life insurance players - HDFC Standard Life Insurance, ING Vysya Life Insurance, Bajaj Allianz Life Insurance, Tata AIG Life Insurance, New India Assurance, National Insurance, Kotak Old Mutual Life Insurance and and IndusInd Bank (the corporate agent of Cholamandalam MS General Insurance) for violation of various norms. In the process the regulator has ended up collecting Rs 2.78 crore in three months.
The regulator wants to make the insurance industry more transparent and promote healthy learning practices in the industry, says a senior official of a private life insurance company. The chairman of IRDA wants to curb miss-selling as much as possible so that the insurers retain goodwill among the consumers.
Last week, IRDA had charged Kotak Old Mutual Life Insurance a fine of Rs 22 lakh for violating rules pertaining to the file and use procedure and violation of group guidelines. In August, Tata AIG Life Insurance was charged penalty of Rs 49 lakh and New India Assurance and National Insurance had to pay a penalty of Rs 5 lakh for violation of certain norms. Earlier in June, HDFC Standard Life Insurance had been asked to pay Rs 1.47 crore penalty and ING Vysya Life Insurance Rs 30 lakh, Bajaj Allianz Life Insurance Rs 5 lakh and IndusInd Bank Rs 15 lakh.