Insurance regulator Insurance Regulatory and Development Authority (Irda) has imposed a fine of Rs 10 lakh on Anil Dhirubhai Ambani Group company Reliance Life Insurance for violating norms.
The company was directed to pay a penalty of Rs 10 lakh and was asked to adhere strictly to the guidelines in future, said an order by Irda chairman J Hari Narayan, posted on the official website of the regulator on Tuesday.
Reliance Life, according to the order passed in August by Irda, was fined for paying excess referral fees and not following the regulatory guidelines with respect to group products.
The order followed a meeting between the Irda officials and Reliance Life management in July, during which six charges were discussed.
No comments could be obtained from Reliance Life.
In its reply to Irda, the company had agreed for the lapses and said these fees were paid in anticipation of business volumes to be generated according to initial commitments.
"The company is directed to pay a penalty of Rs 5 lakh for the violation and cautioned to ensure they adhere strictly to the guidelines in future," the Irda said.
Also, the regulator has said the company has deviated in the 'F&U procedure', particularly in group products and the comments received from the company on this was not satisfactory.
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