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IRDAI has imposed a fine of Rs.1 crore on Marsh India Insurance Broker for withholding premium amount of policyholders.
The insurance regulator has found that the insurance brokers did not remit the premium amount to the respective insurers within the specified time limits. In fact, in some cases, the delay was beyond 180 days from the date of receipt of premium.
According to IRDAI norms, the insurance broker has to remit the premium amount received from clients to the insurance companies within 15 days. In case there is a delay, the broker has to take written consent from clients.
IRDAI data shows that the company has delayed premium payment of Rs.1253 crore spread across 826 cases in 3 years.