The Insurance Regulatory and Development Authority (IRDA) on 18 December 2014 imposed monetary penalty on Canara HSBC Oriental Bank of Commerce (OBC) Life Insurance Company Ltd and Anand Rathi Insurance Brokers for violating regulatory norms.
Penalty on Canara HSBC OBC Life Insurance Co
The monetary penalty imposed on Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd was 31 lakhs rupee which has to be remitted within 15 days from the date of receipt of the order. The company was penalised on charges of delay in payment of claims, non-adherence to product specification and violating licensing of corporate agents norms.
The Life Insurer practice was considered violation of Clause C-7 of the Group Insurance guidelines and the penalty was imposed by IRDA under powers vested under section 102 of the IRDA Act, 1999.
IRDA also advised the company to strengthen its internal controls to ensure strict compliance with investment regulations.
Penalty on Anand Rathi Insurance Brokers
Anand Rathi Insurance Brokers was imposed a penalty of 5 lakh rupees which is payable through Demand Draft drawn within 15 days from the receipt of letter.
The company was directed to stop transfer of funds between broker and their parent company Anand Rathi Financial Services. IRDA also warned the company to ensure strict compliance of the regulations.
IRDA took action against the company under Regulation 34(2) of IRDA (Insurance Brokers) Regulations 2002.
When: on 18 December 2014