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The Insurance Regulatory and Development Authority (Irda) has imposed Rs 10 lakh penalty on Max Life Insurance Company for violating norms on commissions.
The company paid more commissions than was permitted under the existing norms to Barclays Investments and Loans (India) in two financial years.
A penalty of Rs 5 lakh was imposed on the company for each financial year, according to an order issued by the regulator.
"On review of the returns filed with the Authority on August 4, 2010, with respect to financial year 2009-10, it was observed that the insurer has paid other payouts apart from permissible commission to corporate agent -- Barclays Investments and Loans (India) -- in the form of infrastructure facilities availed in the premises of the corporate agent in violations of the guidelines," says the Irda order.
