In line with the corporate, the penalty was levied after an onsite inspection carried out by IRDAI in September 2020, overlaying the monetary years 2017-18, 2018-19, and 2019-20.
The penalty of Rs 1 crore was levied for points associated to the safety of policyholders’ pursuits. Moreover, a penalty of Rs 1 crore was imposed for irregularities in regards to the outsourcing of providers by the corporate.
“IRDAI issued an Order dated August 01, 2024, levying a penalty in mixture of Rs. 2 crore for violation of provisions of relevant IRDAI Rules: Penalty of Rs.1 crore (Rupees One crore) with respect to sure features pertaining to Safety of Policyholders’ Curiosity; Penalty of Rs.1 crore (Rupees One crore) with respect to sure features of Outsourcing of providers undertaken by the Firm and cost of Fee or Remuneration or Reward for solicitation of insurance coverage enterprise,” stated the corporate on Thursday in its submitting with the change.
Along with the monetary penalties, IRDAI has issued additional instructions and advisories to the insurance coverage supplier HDFC Life. The corporate has been instructed to stick to those tips inside a stipulated timeframe to rectify the recognized deficiencies and guarantee compliance with regulatory requirements.
The Insurance coverage Regulatory and Improvement Authority of India (IRDAI) is a statutory physique established by the Insurance coverage Regulatory and Improvement Authority Act, 1999 (IRDA Act, 1999) to oversee and develop India’s insurance coverage sector. IRDAI’s aim is to guard policyholders’ pursuits and promote the trade’s orderly progress.