After penalising Max Life Rs 3 crore for its deal with Axis Bank, the IRDAI has imposed a Rs 2-crore penalty on the private lender.
The penalty is in respect of two charges made by IRDAI, one of which pertains to noncompliance of its instructions. The second charge is that Axis Bank made undue gains from a transaction Max Life Insurance shares.
“By undertaking the transactions of transfer of shares with the promoters/shareholders of the insurer (Max Life Insurance) in violation of the directions of the authority, the corporate agent, Axis Bank, has circumvented the maximum limits of commission or remuneration as stipulated in IRDAI,” the regulator said in its order.
The insurance watchdog has asked the bank to remit the penalty within 21 days. It has also asked the bank to place the order before its board at the next meeting so that it can take note of the violation and take preventive steps.