HDFC Life Penalty: After conducting an on-site inspection, the insurance regulator has decided to impose a penalty of Rs 1 crore each on HDFC Life in two separate cases…
Insurance regulator IRDAI has taken action against insurance company HDFC Life. The regulator has imposed a fine of Rs 2 crore on the company. This action of the regulator is regarding irregularities in compliance with the rules. The company has informed the stock market about the action taken against it.
The regulator had done the inspection
HDFC Life said in a regulatory filing that an on-site inspection was done before this action was taken by the regulator IRDAI. The Insurance Regulatory and Development Authority of India conducted an on-site inspection in September 2020, which was for the financial years 2017-18, 2018-19 and 2019-20. After that the regulator has now decided to impose a penalty.
Penalty imposed in two separate cases
The company has been fined Rs 1 crore in two separate cases. The first case is related to the protection of the interests of the policyholders. For that, IRDA imposed a fine of Rs 1 crore on HDFC Life. At the same time, a separate fine of Rs 1 crore has been imposed on the company for irregularities related to outsourcing of various services. Thus, a total fine of Rs 2 crore has been imposed on it.
Many instructions given to the company
Apart from imposing a financial penalty, IRDA has also given other instructions to HDFC Life. The company has been given many directions and advisories by the regulator. The company has been told to follow the given instructions properly. The company has also been asked to identify the flaws and correct them within the stipulated time. IRDA has said that HDFC Life should ensure compliance with regulatory standards.
IRDA took action on Thursday
IRDA i.e. Insurance Regulatory and Development Authority of India took this action of imposing fine and giving directions on August 1. IRDA has been created to monitor the insurance sector in India and ensure proper growth. The main objective of IRDA is to protect the interests of all policyholders while ensuring the growth of the insurance industry.
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