The Insurance Regulatory and Development Authority of India (Irdai) has imposed a Rs 2 crore penalty on private lender Axis Bank after penalising Max Life for its Rs. 3 crore deal.
The fine relates to two allegations made by Irdai:
- Non-compliance of Irdai’s instructions,
- Axis Bank gained improperly from a transaction involving shares of Max Life Insurance.
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"By undertaking the transactions of transfer of shares with the promoters/shareholders of the insurer (Max Life Insurance) in violation of the directions of the authority, the corporate agent, Axis Bank, has circumvented the maximum limits of commission or remuneration as stipulated in Irdai,” the regulator said in its order.
The insurance regulator has requested that Axis Bank pay the fine within 21 days. In order for the board to take note of the valuation and take preventative action, it has also requested that Axis Bank present the order to the board at its upcoming meeting.
