IRDAI slaps ₹1 crore penalty on Edelweiss Life Insurance
Insurance regulator IRDAI has imposed a penalty of ₹1 crore on Edelweiss Life Insurance Company for violations of certain corporate governance guidelines.
Insurers must avoid or mitigate any conflicts of interest while outsourcing. Insurer is responsible for all regulatory obligations and conducting proper due diligence and monitoring of the outsourced service provider. Adequate systems, policies and procedures to address potential conflicts of interest and compliance with the provisions of Companies Act, 2013 need to be established by the insurer, IRDAI said in its order.
On another charge that the life insurer did not capture bank account details of policyholders at proposal stage where premium amount exceeds ₹10,000, IRDAI the cautioned the insurer for the lapse in the wake of the company's submission that preventive and corrective actions were taken. Stating the insurer's contention that the bank details of the policy holders are not required is not acceptable, the regulator directed Edelweiss Life to take all required details of the bank account of the proposer/insured in the proposal form at the proposal stage itself. Any failure in compliance in future will be viewed seriously, it said.
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