11 Jan, 2012, 09.20PM IST, Shilpy Sinha,ET Bureau , Mumbai: The Insurance Regulatory and Development Authority today imposed a fine of Rs 20 lakh on Future Generali Life Insurance for procuring business through unlicensed agents.
Irda in its investigation found out that unlicensed individuals have solicited business for an entity "Insurance For You (Future)" that has not been approved by the Authority as Corporate Agent.
"The Insurer's contention that the business booked by the individual agent was inadvertently categorized under corporate agency is not acceptable. The Insurer has also not been able to explain to the satisfaction of the Authority, the reasons for signing of the Agents Confidential Report by persons other than the agent," Irda said in a circular.
The regulator said this is a substantive violation where the Insurer has permitted various unlicensed individuals to solicit and procure business through Insurance For You (Future) when the entity itself was not licensed. The company is asked to pay the fine within 15 days.
Irda in its investigation found out that unlicensed individuals have solicited business for an entity "Insurance For You (Future)" that has not been approved by the Authority as Corporate Agent.
"The Insurer's contention that the business booked by the individual agent was inadvertently categorized under corporate agency is not acceptable. The Insurer has also not been able to explain to the satisfaction of the Authority, the reasons for signing of the Agents Confidential Report by persons other than the agent," Irda said in a circular.
The regulator said this is a substantive violation where the Insurer has permitted various unlicensed individuals to solicit and procure business through Insurance For You (Future) when the entity itself was not licensed. The company is asked to pay the fine within 15 days.
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