IRDAI Slaps Rs 35 Lakh Fine On Bharti AXA General Insurance
New Delhi: IRDAI has imposed Rs 35 lakh fine on Bharti AXA General Insurance Co Ltd for violation of various norms including outsourcing activities and corporate governance guidelines.
The fine is based on violation related with an inspection finding during December 2012 to March 2013.
"In conclusion, as directed under the respective charges, the penalty of Rs 35 lakh shall be debited to shareholders' account of the general insurer and the amount shall be remitted to Insurance Regulatory and Development Authority of India within a period of 15 days from the date of receipt of this Order," the regulator said in its order.
The insurer was making payments towards infrastructure expenses to corporate agents, making additional payout to licensed entities in the name of workshop, training, distribution of publicity material which were in violation of outsourcing guidelines, and fined Rs 5 lakh.
Among others, it said the company was soliciting business through other than licensed entities without exercising due diligence and impost a penalty of Rs 10 lakh under a clause of Corporate Governance guidelines.
Fine of Rs 5 lakh each was imposed for making payout under commission head to unauthorised entities and not providing information sought by inspection team.
Besides, penalty of Rs 5 lakh each was imposed for violating file & use policy and protection of policy holders interest.
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