IRDAI has imposed a fine of Rs.50 lakh on Future Generali Life Insurance for violation of various norms like soliciting business with unauthorized agents, luring agents and customers with gift voucher of its parent company’s retail arm Big Bazaar, making additional payouts to its corporate agents for advertisement and delaying claim settlement under group policies. The insurance regulator has examined 34 such violations of the company.
Of the total Rs.50 lakh, Rs.15 lakh was imposed for soliciting insurance policies through unauthorized agents of a few corporate agents. Also, the company was found to have paid advance commission to a corporate agent. In addition, the regulator observed that a corporate agent of the company was engaged in multi-level marketing to solicit insurance policies.
The insurance regulator has found that the company had lured distributors and customers with gift vouchers of its parent company - Big Bazaar. The company had paid Rs. 23.5 crore to Big Bazaar for such coupons.
Meanwhile, IRDAI has found that the company had generated leads through unlicensed entities by paying hefty amounts in the name of printing and distributions. Also, the regulator found that the company had delayed claim settlement under group insurance schemes.
IRDA has asked Future Generali Life Insurance to pay the penalty money by June 24.