IRDAI penalizes Reliance Life Insurance for norms violations

The Insurance Regulatory and Development Authority of India has imposed Rs.85 lakh penalty on Reliance Life Insurance Company Ltd. for violation of norms pertaining to outsourcing, among other violations.

An independent audit by chartered account firm should be commissioned to look into the entire transactions of payments made to the service providers and the structure/shareholding pattern/commission and the existence of all these entries, including the relevance of payments made by Reliance Money Infrastructure to various entities, IRDAI said.

The company was asked to review and examine the outsourcing policy and related activities of the company and initiate necessary steps to bring about compliance in letter and spirit to the regulatory provisions.