The Insurance Regulatory and Development Authority (Irda) has imposed a penalty of Rs 1.77 crore on Reliance Life for violating regulatory norms.
In a 37-page order, Irda has made around 47 charges against the company. Under one of the charges it has levied a penalty of Rs 25 lakh stating that "group insurance policies death claims are settled in favour of the master policy holder as against the beneficiaries... The procedure adopted in issuing the cheques favouring the master policy holder is in violation of group insurance guidelines issued by Irda."
In another charge, Irda imposed a penalty of Rs 60 lakh stating "the life insurer has sourced business through unlicensed entities and is obtaining leads from many firms and payments are made to these entities..."
Irda carried out an onsite inspection of Reliance Life in January 2012.
