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The decision came after an inspection of Policybazaar’s operations on 1–5 June 2020. Credit: Mayur_Mehta/Shutterstock.com.
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a Rs50m ($570,000) penalty on Policybazaar insurance, a subsidiary of PB Fintech.
The fine is a result of the company’s failure to comply with certain regulatory requirements.
The decision came after an inspection of Policybazaar’s operations on 1–5 June 2020.
Following the inspection, a Show Cause Notice was issued to the company on 7 October 2024, which allowed Policybazaar to present its case and make further submissions.
The IRDAI’s order, specifying the reasons for the penalty, will be discussed at Policybazaar’s next board meeting. The company is then expected to provide a report detailing the steps taken in response to the authority’s findings.
The penalty was levied due to infringements concerning the directorships of key managerial personnel and the principal officer, the presentation of products, the management of outsourcing agreements, the system of tagging policies, and the process of premium collection and remittance.
In February last year, Policybazaar secured permission from the IRDAI to function as a composite insurance broker, expanding its ability to include reinsurance products and services.
This development was intended to allow the company to offer a wider range of services such as risk management and reinsurance product sales, as well as the maintenance of claims data.
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