Irda has slapped a penalty of Rs 31 lakh on Canara HSBC Oriental Bank of Commerce Life Insurance Company and Rs 5 lakh on Anand Rathi Insurance Brokers for violating regulatory norms.
Irda has penalised Canara HSBC Oriental Bank of Commerce Life Insurance Company on charges including, delay in payment of claims, non-adherence to product specifications and violating licensing of corporate agents norms.
"...Under the respective charges, the penalty of Rs 31 lakh shall be remitted within a period of 15 days from the date of receipt of this order by the Life Insurer," Irda said in an order to Canara HSBC Oriental Bank of Commerce Life Insurance Company.
The insurer has accepted the delay in dispatch of policy documents arising out of internal processing/system related issues, Irda said.
"Insurer is warned on the inadequacies observed in the internal processes/systems/controls and is directed to strengthen internal processes to ensure compliance with the mandate," it added.
It also advised the company to strengthen its internal controls to ensure strict compliance with investment regulations.
In the case of Anand Rathi Insurance Brokers, Irda has directed the company to stop transfer of funds between broker and their parent company Anand Rathi Financial Services.
"...The penalty amount of Rs 5 lakh shall be paid through Demand Draft drawn in favour of Insurance Regulatory and Development Authority (Irda)," it said.
Further the broker is directed to ensure strict compliance of the regulations, Irda said.
