Irda imposes fines of nearly Rs 5 crore on 12 insurance companies for non compliance
January 12, 2014
Irda has fined 12 insurance companies during 2012-13 for nearly Rs. 5crore. Penalties were levied on 10 life insurance companies and two non-life insurance companies for non- compliance with various regulatory stipulation, Irda said in annual report 2012-13.Apart from monetary penalty levied on insurers, penal actions were also initiated on various non-compliant intermediaries as well.
HDFC Life paid a fine of Rs. 1.47 crore, while ICICI Prudential Life paid Rs. 1.18 crore for failure to comply with various provisions of the Insurance Act 1938.
PNB Metlife paid penalty of Rs. 76 lakh and Tata AIA paid Rs. 49 lakh during 2012-13.
The annual report also noted that insurance penetration in India, which surged till 2009-10, has slipped since 2010-11 on account of slowdown in life insurance premium as compared to the growth rate of India economy. Insurance penetration increased from 2.71% in 2001 to 5.20% in 2009 but has dropped to 3.96% in 2012.
Life insurance penetration had consistently gone up from 2.15% in 2001 to 4.60 in 2009, before slipping to 4.40% in 2010, 3.40% 2011 and further slipping to 3.17% in 2012.
The insurance penetration of the non-life insurance sector in the country has remained near constant in the range of 0.55-0.71% over the last 11 years, however the penetration rose to 0.78 in 2012.
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