New Delhi: The Insurance Regulatory and Development Authority (IRDA) has imposed a fine of Rs5 lakh on Tata AIG Life Insurance for violation of regulatory guidelines, reports PTI.
The company has been directed to pay a penalty of Rs5 lakh within 10 days for violating IRDA directions. Tata AIG officials could not immediately be reached for comments.
According to the order passed by the IRDA, Tata AIG Life's Expenses of Management (EoM) crossed the prescribed limit in 2008-09, following which the regulator asked the insurance firm to ensure convergence with regulatory norms.
However, the EoM statement submitted by Tata AIG Life to the IRDA for the year 2009-10 indicated that the company did not follow the regulator's directive. “This is a violation of IRDA's direction...,” the order said.
It said that Tata AIG Life went on an expansion spree by opening branches in the year 2009-10, even though it had assured the regulator that it would restrict its expenses.
“Contrary to the directions of the authority and assurances provided by the company to the authority while requesting for approval to open new branches offices in the year 2009-10, Tata AIG Life has not complied with the limits on EoM,” it said.
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