Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 1.47 crore on HDFC Standard Life Insurance Company. This is the highest ever penalty imposed on any life insurance company so far.
This penalty has been imposed for many violation such as wrongful marketing expenses paid to corporate agents, use of unlicensed individuals and corporate agents to procure business, payment of death claims and deviation from norms on Unit-Linked Insurance Plan (ULIP).
As per IRDA Penalty amount will be debited only to the shareholder’s account and no part of the penalty will be debited to policyholder’s account.
As per IRDA penalty of such nature is a regulatory necessity in order to impress upon the management of any insurance company that regulatory prescriptions have to be complied with at all times and failure to do so will entail appropriate regulatory action.
Posted on June 29, 2012 by Akanksha
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