NEW DELHI: The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a fine of Rs 2 crore on HDFC Life, for violating several of its regulations, said the company on Thursday in its filing with the exchange.
The company was fined Rs 1 crore for matters related to safeguarding the interests of policyholders and, an additional penalty of Rs 1 crore was levied due to irregularities in the company’s outsourcing practices.
“IRDAI issued an Order dated August 01, 2024, levying a penalty in aggregate of Rs. 2 crore for violation of provisions of applicable IRDAI Regulations: Penalty of Rs.1 crore (Rupees One crore) with respect to certain aspects pertaining to Protection of Policyholders’ Interest; Penalty of Rs.1 crore (Rupees One crore) with respect to certain aspects of Outsourcing of services undertaken by the Company and payment of Commission or Remuneration or Reward for solicitation of insurance business,” the company said.
The penalty was levied after an onsite inspection conducted by IRDAI in September 2020, which covered the financial years 2017-18, 2018-19, and 2019-20, as per the company.
HDFC Life, an insurance provider, has been given additional instructions and advisories by IRDAI, along with monetary fines. The company is required to follow these guidelines within a specified timeline to address the identified shortcomings and ensure compliance with regulatory norms.
The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body established by the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) to supervise and develop India’s insurance sector.
IRDAI’s primary objectives are to safeguard the interests of policyholders and facilitate the orderly expansion of the insurance industry in the country.
(With inputs from ANI)