The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a total fine of Rs 2 crore on HDFC Life for violating various rules. The company has informed the exchange about this in a filing.
According to the company, IRDAI imposed this fine after an onsite inspection in September 2020. This inspection covers the financial years 2017-18, 2018-19 and 2019-20.
IRDAI has imposed a total fine of Rs 2 crore on HDFC Life Insurance Company. Out of this, a fine of Rs 1 crore has been imposed for issues related to the protection of the interests of policyholders. Apart from this, a fine of Rs 1 crore has also been imposed due to irregularities in outsourcing of services.
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Company statement
IRDAI issued an order dated August 1, 2024, imposing a total penalty of Rs 2 crore for violation of applicable IRDAI regulations. “A penalty of Rs 1 crore was imposed for certain aspects relating to protection of the interests of policyholders and a penalty of Rs 1 crore for certain aspects relating to outsourcing of services performed by the company and payment of commission or remuneration or reward for insurance business,” the company said in an exchange filing.
IRDAI issued guidelines to the company
In addition, IRDAI has issued additional guidelines and advice to the company. HDFC Life has been directed to comply with these guidelines within the prescribed time frame, remove the identified deficiencies and ensure compliance with regulatory standards.
