Irda imposes Rs 50 lakh fine on 6 insurers for violating norms

Insurance regulator Insurance Regulatory and Development Authority (Irda) imposed Rs 50 lakh fine on 6 insurance companies, including private sector players Reliance General and Apollo Munich Health in 2009-10 for failing to comply with various norms, including rural and social obligations.

Fines were also imposed on Life Insurance Corporation, General Insurance Corporation, HDFC Standard Life and HDFC Ergo General, said the annual report of Irda.

The maximum penalty of Rs 20 lakh was levied on Reliance General for violation of Irda's regulations and guidelines, while the sectoral watchdog imposed fine of Rs 10 lakh on Apollo Munich Health for non compliance to rural and social sector obligations during 2008-09

The country's largest insurer LIC was fined Rs 5 lakh in January this year as it failed to comply with obligations towards rural sector in 2008-09, the report said.

Irda imposed Rs 5 lakh penalty on re-insurer GIC for failure to comply with the investment regulations during 2009-10.

Penalty of Rs 5 lakh each was levied on HDFC Standard Life and HDFC Ergo for failure to comply with rural sector obligations in 2008-09 and 2007-08 respectively, Irda said.