Irda slaps Rs 10 lakh penalty on Reliance Life

The Insurance Regulatory and Development Authority (Irda) has imposed a fine of Rs 10 lakh on Anil Ambani Group company Reliance Life Insurance Company for violating the norms.

The company was directed to pay a penalty of Rs 10 lakh and was asked to adhere strictly to the guidelines in future, said an order by Irda Chairman J Hari Narayan which was posted on the official website of the regulator today.

Reliance Life, according to the order passed in August by the Irda, was fined for paying excess referral fees and not following the regulatory guidelines with respect to group products.

 

The order followed a meeting between the Irda officials and Reliance Life management in July, during which six charges were discussed.

No comments could be obtained immediately from Reliance Life.

The insurance regulator has observed that Reliance Life had paid excess referral fees than envisaged in the referral guideline.

In its reply to the Irda, the company had agreed for the lapses and said that these fees were paid in anticipation of business volumes to be generated as per initial commitments.

"The company is directed to pay a penalty of Rs 5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines in future," the Irda said.

Also the regulator has said that the company has deviated in the "F&U procedure" particularly in group products and the comments received from the company on this was not satisfactory.

"The company is directed to pay a penalty of Rs 5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines in future," Irda said.