Future Generali Life fined Rs50 lakh for violation of business norms
13 Jun 2015
The Insurance Regulatory and Development Authority of India (Irda) has imposed a penalty of Rs50 lakh on Future Generali Life Insurance Company for failure to meet business commitments.
The Future group insurance joint venture has been charged with violating a number of norms, including non-settlement of claims in respect of group insurance, extension of corporate agency beyond licence expiry, use of unlicensed entities for procuring business and distribution of vouchers from group company Big Bazar.
In its final order, Irda said the company had shown a casual approach towards settlement of some claims in group insurance schemes and made extra payouts to corporate agents in the name of marketing expenses.
Irda said the company had sourced some business through unlicensed entities / individuals. ''As directed under the respective charges, the penalty of Rs 50,00,000 shall be remitted by the life insurer by debiting shareholders' account within a period of 15 days from the date of receipt of this order,'' said an order issued by Irda chairman TS Vijayan.
Future Generali has been investigated on 34 charges involving a variety of charges related to business.
The company, however, said, ''Future Generali Life remains committed to the highest standards of compliance and corporate governance. This order is an outcome of the inspection done by the regulator in 2012 and we have taken appropriate steps to further strengthen our operating processes and ensure full compliance to all regulatory guidelines and norms.''