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IRDA penalises Tata-AIG Life Insurance

Tata-AIG Life has to remit penalty of Rs. 49 lakh debiting shareholder's account within 15 days

August 16, 2012 11:08 IST | India Infoline News Service
The Insurance Regulatory and Development Authority (IRDA) has penalised Tata-AIG Life Insurance Company for violation of various regulatory norms. According to the IRDA order, Tata-AIG Life has to remit the penalty of Rs. 49 lakh debiting shareholder's account within 15 days.

The insurance regulator had found lapses in various rules, including non-adherence to norms of referrals and preparation of financial statements by the life insurer. The penalty follows an on-site inspection of Tata-AIG Life in August 2010, during which IRDA found violations of the provisions and guidelines of the Insurance Act. Tata AIG Life has made certain payments to HSBC Bank and Citibank banks in violation of IRDA's guidelines on group insurance policies, IRDA said.

Tata-AIG Life was also found violating the provisions of the norms while signing referrals arrangement with non-banking entities and utilising unlicensed entities. Further, the IRDA has found lapses in the business promotion expenses under the Corporate Agency guidelines.

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