Max Life to pay Rs 3 cr penalty imposed by Irdai to avoid legal escalations

The regulator indicated that the deal between Max Life and Axis Bank circumvented regulations on commission limits

Private sector insurer Max Life Insurance on Monday said it will pay the penalty imposed on it by the Insurance Regulatory and Development Authority of India (Irdai) to avoid unnecessary and long legal escalations. However, it does believe that it has not committed any wrongdoing in its share sale transaction with Axis Bank.

The regulator imposed a Rs 3 crore penalty on the life insurer last week and a Rs 2 crore fine was imposed on the bank for the share sale deal that saw the bank acquiring 12.99 per cent stake in the life insurer and becoming a co-promoter