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IRDAI has levied a penalty of Rs. 2 crore on HDFC Life Insurance for delay in claim settlement and paying additional money to intermediaries.
The insurance regulator found that the life insurer delayed allocating premium amount and claim settlement. In fact, there were instances where the insurer did not pay penal interest for such a delay at the time of settling claims.
Another major violation was related to distribution of life policies. The company paid additional money to web aggregators for making cold calls to acquire new clients. As per the norms, insurers cannot pay anything other than commission.
Further, the life insurer made additional payment to corporate agents to promote their policies.
IRDAI has asked the insurer to pay the penalty amount within the next 45 days.
