IRDA slaps Rs 10L fine on Reliance Life
In an order issued by IRDA chairman J Hari Narayan which was posted on the official website of the regulator, Reliance Life was directed to pay the penalty for paying excess referral fees and not following the regulatory guidelines with respect to group products.
The insurance regulator has observed that Reliance Life had paid excess referral fees than envisaged in the referral guideline. In its reply to the IRDA, the company had agreed for the lapses and said that these fees were paid in anticipation of business volumes to be generated as per initial commitments. “The company is directed to pay a penalty of Rs 5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines...in future,” the IRDA said. The regulator has said that the company has deviated in the “F&U procedure” particularly in group products and the comments received from the company on this was not satisfactory. “The company is directed to pay a penalty of Rs 5 lakh for the violation and cautioned to ensure that they adhere strictly to the guidelines in future,
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