Insurance
Penalty : Chola General ‘penalised’

A Rs5-lakh fine for violating guidelines on licensing of corporate agents

IRDA has levied a penalty of Rs5 lakh on Cholamandalam General Insurance for violating the provisions of various regulations, guidelines and circulars. This penalty has been slapped on the insurer due to the violation of guidelines issued on licensing of corporate agents which stipulates that if a corporate agent terminates its agreement with one insurer before entering into a corporate agency agreement with another insurer, it has to seek specific written approval of the regulator.

The insurer should also not pay any amount other than the permitted agency commission to the corporate agent as per current guidelines. This is a violation of Regulation 10(1) (vi) (ii) of the Insurance Advertisement and Disclosure Regulations, 2000 which permits a third party to share information about its members and collect compensation based on sales. However, payment of compensation for solicitation by third-party entities is not covered under this Regulation.

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COMMENTS

Nagesh KiniFCA

6 years ago

It is in deed gratifying to see that the insurance regulator is at last barring its fangs rather than acting as a barking dog that is not capable of biting.
Why is IRDA not coming out with something user friendly moves on cashless health covers, more particularly when the Delhi and Bombay HCs have already admitted PILs? Does it require judicial activism to prod IRDA into action?

Insurer

6 years ago

From a Risk Management perspective, the financial risks of losing 5 Lacs is too little to deter any insurer from exercising such mal-practices. IRDA should actually impose meaningful penalties in order to promote regulatory compliance by the insurers who actually want to do the right things.

SBI Mutual Fund floats 370 days debt fund series

SBI Mutual Fund new issue closes on 5th April

SBI Mutual Fund has launched SBI Debt Fund Series-370 Days 13, a close-ended income scheme.

The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments. The tenor of the scheme is 370 days.

The new issue closes on 5th April. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Fund Index is the benchmark index. Rajeev Radhakrishnan is the fund manager.

User

ICICI Prudential Mutual Fund launches one year fixed maturity plan

ICICI Prudential Mutual Fund new issue closes on 11th April

ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 54-1 Year Plan C, a close-ended income scheme.

The investment objective of the plan is to seek to generate regular returns by investing in a portfolio of fixed income securities/debt instruments which mature on or before the date of maturity of the plan/scheme. The tenor of the plan is one year.

The new issue closes on 11th April. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Fund Index is the benchmark index. Chaitanya Pande is the fund manager.

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