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IRDAI has imposed a penalty of Rs.1 crore on Acko General Insurance for violating several insurance regulations.
According to IRDAI, Acko had paid commission of Rs. 19.97 crore to Ola Financial Services between FY 2019-20 and FY 2020-21, which was not legally allowed to sell insurance because it did not have a corporate agent license.
Also, the regulator noted that Acko General made indirect payments for advertisement and technology services, which is not permitted. As a result, IRDAI imposed a penalty of Rs. 1 crore and directed the company to improve its internal policies and review its practices.
Acko must now pay the fine within 45 days and submit a report to IRDAI on the steps it will take to fix the issues.