The Insurance Regulatory and Development Authority (IRDA) has found lapses in various rules, including non-adherence to norms of referrals and preparation of financial statements, by the life insurance company.
"...I hereby direct the insurer (Tata-AIG Life Insurance Company) to remit the penalty of Rs 49 lakh debiting shareholder's account within 15 days," IRDA Chairman J Hari Narayan said in his order.
The penalty follows an on-site inspection of Tata-AIG in August, 2010, during which the regulator found violations of the provisions and guidelines of the Insurance Act.
The insurance company could not be contacted for comments. MORE
