Insurance regulator Irdai has slapped a penalty of Rs 15 lakh on public sector general insurer New India Assurance Co Limited for violating various insurance norms.
The New India Assurance Co was found to be violating norms including authorising regional offices to allow up to 40% of motor premium towards procurement expenses, offering discretionary or commercial discounts, accepting business from corporate agent from licence expired agents etc.
"The insurer is procuring business and paying commission to the agents whose licences expired long back," it said in an order issued on Thursday.
"As directed under the respective charges, the penalty of Rs 15 lakh shall be debited to the shareholders' account of the general insurer and the amount shall be remitted to Insurance Regulatory and Development Authority of India (Irdai)," it said.
The penalty is to be paid within a period of 15 days from the date of receipt of this order, it added.
Besides, Irdai said the Chief Investment Officer and Chief of Finance are not the members of the insurer's Investment Committee.
The company also accepted business from the three bancassurance corporate agents on pan India basis inspite of not having a single licensed specified person for general insurance business, which was in violation of Irdai nroms.
