IRDA slaps penalty of Rs 76 lakh on Metlife
New Delhi: Insurance regulator IRDA has imposed a penalty of Rs 76 lakh on Met Life India Insurance Company for violation of various regulations, including gaps in policy administration system.
"...I hereby direct the insurer (Met Life) to remit the penalty of Rs 76 lakh, by debiting share holders' account ...," the order signed by IRDA chairman J Harinarayan said.
Among 42 charges against the insurer, one was releated with floating contests for the referral partners and expenses incurred.
IRDA found that "there are 5 instances of such wrong payments" and imposed a penalty of Rs 5 lakh for each instance amounting to Rs 25 lakh.
One charge related with defects in the policy administration system resulting in wrong unitisation of premium in respect of Unit Linked Policies.
On this count, IRDA said: "...The serious gaps in the defective policy admin system are considered as a serious violation impacting the financial interests of policy holders and under powers vested in the provisions of Section 102 of the Act a penalty of Rs 20 lakh is imposed for this violation".