India's insurance regulator Friday announced it has fined private life insurer Aegon Religare Life Insurance Rs.40 lakhs for violations of its regulations.
According to the Insurance Regulatory and Development Authority (IRDA), Aegon Religare has to pay the penalty charges under different heads within 15 days from the date of receipt of its order.
The regulator penalised Aegon Religare for sourcing policies through unlicensed people; non-reporting of outsourcing contracts to IRDA, rewarding the staff of outsourced entitites, violating referral regulations, payments to group entities without reporting to IRDA the outsourced activity and excess payment to brokers.
It also warned the Aegon Religare to call for requiste documents for processing claims at one go and not piecemeal.
The IRDA did not agree with the company's submission that a claim was not paid for non-receipt of documents. However the regulator did not fine the company on this count.