IRDA slaps penalties on 10 insurance companies

The government today said the Insurance Regulatory and Development Authority has imposed penalties on 10 insurance companies, including Life Insurance Corp, in the previous two financial years 2008-09 and 2009-10 for violation of regulations, Parliament was informed on Tuesday.

Besides LIC, the IRDA imposed penalties on Max New York Life, ICICI Lombard, National Insurance Co, United India Insurance, New India Assurance, Apollo Munich Health Insurance, HDFC Standard Life, Reliance General Insurance and General Insurance Corp, finance minister Pranab Mukherjee told the Rajya Sabha in reply to a question.

IRDA imposed penalties on LIC, HDFC Standard Life and Apollo Munich Health for non-achievement of social and rural targets, while GIC was short of investment in central government securities, he said.

Penalty was imposed on New India Assurance for not filing the quarterly financial and solvency statement in time while Max New York Life was charged for violating directions issued by IRDA in respect of unit linked insurance policy.

"The authority carries out regular inspections of insurers to monitor compliance with its guidelines," Mukherjee said.