IRDAI imposed a fine of Rs 2 crore on HDFC Life, the company gave information in the regulatory filing

The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a total fine of Rs 2 crore on HDFC Life for violating various IRDAI rules. The company has given this information in the exchange filing. According to the company, the fine was imposed after an onsite inspection conducted by IRDAI in September 2020. During that time, matters related to the financial years 2017-18, 2018-19, and 2019-20 were investigated.

Insurer HDFC Life was fined Rs 1 crore for issues related to the protection of the interests of policyholders. Additionally, a fine of Rs 1 crore was imposed on the company for irregularities related to outsourcing of services.

The company said in a regulatory filing on Thursday, "IRDAI issued an order dated August 01, 2024, imposing a total penalty of Rs 2 crore for violation of applicable rules. A penalty of Rs 1 crore was imposed in respect of certain aspects related to the protection of the interests of policyholders. At the same time, a penalty of Rs 1 crore (Rs 1 crore) was imposed in matters related to outsourcing of services provided by the company. This action was related to the payment of commission, remuneration, or reward.

Insurance sector regulator IRDAI, apart from financial penalty, has also issued instructions and advice to insurance provider HDFC Life. The company has been asked to comply with these guidelines within the prescribed time frame so that the identified deficiencies can be removed and compliance with regulatory standards can be ensured.

The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body established under the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) to monitor and develop the insurance sector of India. The objective of IRDAI is to protect the interests of policyholders and promote orderly growth of the industry.