Insurance sector regulator the Insurance Regulatory and Development Authority (Irda) has imposed a fine of Rs 1.47 crore on HDFC Life Insurance — the highest ever penalty on any insurer — for violation of various regulatory provisions.
“A penalty of this nature is a regulatory necessity in order to impress upon management of any insurance company that regulatory prescriptions have to be complied with at all times and failure to do so will entail appropriate regulatory action,” the order signed by Irda Chairman J Hari Narayan said.
The regulator has slapped fines of different amounts on various violations. The maximum penalty of Rs 1.05 crore was imposed in a case of death claim under home loan protection policies.
The claim was denied in a case where death occurred within 90 days from the date of commencement of the policy despite Irda advising the insurer to delete this exclusion clause.