IRDA slaps Rs 49-lakh penalty on Tata-AIG Life Insurance
New Delhi: Insurance regulator IRDA today slapped a penalty of Rs 49 lakh on Tata-AIG Life Insurance Company for violation of various regulatory norms.
The Insurance Regulatory and Development Authority (IRDA) has found lapses in various rules, including non-adherence to norms of referrals and preparation of financial statements, by the life insurance company.
"...I hereby direct the insurer (Tata-AIG Life Insurance Company) to remit the penalty of Rs 49 lakh debiting shareholder's account within 15 days," IRDA Chairman J Hari Narayan said in his order.
The penalty follows an on-site inspection of Tata-AIG in August, 2010, during which the regulator found violations of the provisions and guidelines of the Insurance Act.
The insurance company could not be contacted for comments.
The regulator said Tata AIG Life has made certain payments to HSBC Bank and Citibank banks in violation of IRDA's guidelines on Group Insurance policies.
The life insurer, IRDA said, was also been found violating the provisions of the norms while entering into referrals arrangement with non-banking entities and utilising unlicensed entities.
Further, the IRDA has found lapses in the business promotion expenses under the Corporate Agency guidelines.