Holding National Insurance Co Ltd guilty of violating the prescribed norms, insurance regulator IRDAI has imposed a total penalty of Rs.15 lakh on the company.
In its order, passed earlier this month, the authority said the payment made by the insurer, towards infrastructure expenses, to the dealers related to corporate agent/broker were linked to the motor OD (own damage) premium.
“The payout to the vendors related to licensed entities is exactly equivalent to the commission paid to licensed entities in two cases and more than commission in two other cases”. Stating that the insurer had violated the guidelines on entering into additional relationships with corporate agents, the authority imposed a penalty of Rs.5 lakh.
ADVERTISEMENT
Another penalty of a same sum was imposed with regard to a charge that the services performed by Strategic Alliance Partners were not in compliance with various regulations and guidelines of the Insurance Regulatory and Development Authority of India (IRDAI).
The third penalty of Rs.5 lakh was imposed on the insurer for deviating from the discount