The Insurance Regulatory and Development Authority of India (IRDAI) has fined HDFC Life Rs 2 crore for breaching various IRDAI regulations, as reported by the company in a filing with the exchange. This penalty follows an onsite inspection by IRDAI in September 2020, which reviewed financial practices from 2017-18 to 2019-20.
The penalty comprises Rs 1 crore for issues related to protecting policyholders’ interests and another Rs 1 crore for irregularities regarding the outsourcing of services and the payment of commissions or rewards for soliciting insurance business.
In its August 01, 2024, order, IRDAI detailed the penalties: Rs 1 crore for lapses in safeguarding policyholders’ interests and Rs 1 crore for discrepancies in outsourcing and commission practices.
Besides the fines, IRDAI has issued additional directives and advisories to HDFC Life. The company is required to follow these guidelines within a specified timeframe to address the identified issues and meet regulatory standards.
IRDAI, established under the Insurance Regulatory and Development Authority Act, 1999, oversees and develops the insurance sector in India, aiming to protect policyholders and foster the industry’s orderly growth.