IRDAI has imposed fine on one life insurer – Max Life and two non-life insurers - IFFCO Tokio General and Shriram General for violating regulatory norms.
While IRDAI imposed a fine of Rs.3 lakh on Max Life, the insurance regulator penalized IFFCO Tokio and Shriram with Rs.5 lakh and Rs.6 lakh, respectively.
Let's look at their violations:
Max Life
IRDAI found that the life insurer did not disclose details of payment made to its sister company Max Skill First. The life insurer has hired Max Skill First for outsourcing activities.
IFFCO Tokio General
The insurer made additional payment to a motor dealer which was over and above commission. These payments were made in the name of data processing charges and other support functions, which are not allowed in Motor Insurance Service Provider guidelines.
Shriram General
The insurance regulator has found that the company has not maintained arm’s length distance with its parent company Shriram Capital. In fact, the insurer paid an aggregate amount to Shriram Capital without any invoice.
