The insurance regulator IRDAI has penalized HDFC Life with a ₹2 crore fine for non-compliance with regulations.
This action addresses irregularities in the company’s adherence to rules.
HDFC Life has notified the stock market about the regulatory action.
The regulator conducted the inspection
HDFC Life reported in a regulatory filing that IRDAI conducted an on-site inspection before imposing the penalty.
The Insurance Regulatory and Development Authority of India performed the inspection in September 2020, covering the financial years 2017-18, 2018-19, and 2019-20.
Following this inspection, the regulator decided to impose the penalty.
Fines Imposed in Two Separate Cases
The company has been fined Rs 1 crore in two separate cases.
The first fine of Rs 1 crore is related to failing to protect policyholders’ interests.
Additionally, the company has been fined Rs 1 crore for irregularities in outsourcing services. This brings the total fine to Rs 2 crore.
Numerous instructions given to the company
In addition to the monetary penalty, IRDA has issued further instructions to HDFC Life.
The company has received several directions and advisories from the regulator.
HDFC Life is required to follow these instructions closely, identify any shortcomings, and correct them within the given timeframe.
IRDA has emphasized that the company must ensure compliance with regulatory standards.
IRDA took action on Thursday
On August 1st, the Insurance Regulatory and Development Authority of India (IRDA) imposed the fine and issued directions.
IRDA was established to oversee the insurance sector in India and promote its development.
Its primary goal is to protect policyholders’ interests while supporting the growth of the insurance industry.
