IRDAI fines Royal Sundaram General Insurance Rs.1 crore

IRDAI fines Royal Sundaram General Insurance Rs.1 crore

Indian insurance sector regulator on Friday penalized Chennai-based non-life insurer Royal  Sundaram General Insurance Company Ltd with Rs. 1 crore fine for violating its norms.

The insurer was given a warning and advisory for violating IRDA (Health Insurance) Regulations, 2016.

The penalty has been levied and the warning issued based on the inspection of the insurer’s books by the Insurance Regulatory and Development Authority of India (IRDAI) in 2020.

The Rs. 1 crore penalty is for violation of IRDAI (Outsourcing of Activities by Indian Insurers) Regulations, 2017, and should be paid to IRDAI by debiting the Shareholder’s Fund.

It was observed that the payments made during 2018-19 and 2019-20 to vendors above Rs.1 crore were not reported in the outsourcing returns filed with the Authority, IRDAI said.

As per IRDAI, Royal Sundaram General had paid Rs.51.12 crore to various vendors during FY 2019-20 and did not report to it as per the regulations then in force.

(Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com)

Venkatachari Jagannathan

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