Insurance regulator IRDAI has imposed a fine of Rs 15 lakh on state-owned general insurer National Insurance for violation of various regulatory norms including payouts over and above commission.
It has been observed that insurer was paying additional payouts over and above commission to Maruti Insurance Business Agency Ltd and to Hero Corporate Services Ltd on the motor premium solicited through the two corporate agents, IRDAI said in an order issued today.
Additional payouts to the licensed entities were referred by insurer as reimbursement towards infrastructure costs, it said.
In view of the violation, the Authority in exercise of the powers vested imposes a penalty of Rs 5 lakh, Insurance Regulatory and Development Authority of India (IRDAI) order said.
Besides, it also imposed penalty of Rs 5 lakh for violation of Strategic Alliance Partners (SAPs) i.E of Tata Business Support Services and Honda Seil cars (I) Pvt Ltd and with the corporate agents, it said.
The company also deviated from the discount structure approved by the regulator under File & Use guidelines by offering discounts beyond the approved structure, it said.
In view of the violations of F&U guidelines, the Authority imposed a penalty of Rs 5 lakh, it added.
The regulator has directed the company to pay the penalty of Rs 15 lakh within a period of 15 days from the date of receipt of this order.
