The Insurance Regulatory and Development Authority (IRDA) imposed a penalty of Rs.31 Lakhs on Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd and 5 lakhs on Anand Rathi Insurance Brokers for violating regulatory norms. The company was penalized for setting policies in favour of master policy holders under non-employee/employer groups.
The penalty amount has to be remitted within 15 days from the date of receipt of the order. The company was penalised on charges of delay in payment of claims, non-adherence to product specification and violating licensing of corporate agents norms.
The company was directed to stop transfer of funds between broker and their parent company Anand Rathi Financial Services. IRDA also warned the company to ensure strict compliance of the regulations.