Max Life Insurance agrees to pay Rs3 crore penalty imposed by IRDAI

17 Oct 2022 , 09:19 AM

Max Financial Services stated that recently in transactions involving Axis Bank and the company with respect to the transfer of shares of Max Life, a material subsidiary of MFSL, the Insurance Regulatory and Development Authority of India (ÍRDAI) vide an order issued to Max Life imposed a penalty of Rs3 crore.

IRDAI alleges non-compliance with certain terms of its approval granted.

Max Life has opted to pay the IRDAI penalty despite its confidence that it did not conduct any violation in order to prepare the path for the future, including strengthening its long cooperation with Axis Bank and avoiding unnecessary and lengthy judicial escalation.

Axis Bank Limited (Axis Bank), India’s third largest private sector bank, is a co-promoter of Max Life Insurance Company Limited (Max Life), following an acquisition of a 12.99% stake in the fourth largest private life insurance firm in April 2021.

At around 9.23 AM, Max Financial Services was trading at Rs718.55 up by 0.74% from its previous closing of Rs713.25 on the BSE. The scrip opened at Rs716.40 and touched intraday high and low of Rs721.15 and Rs706.50 respectively.

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