IRDA slaps Rs 6 lakh fine on SBI Life insurance
New Delhi: Insurance regulator IRDA Tuesday imposed a penalty of Rs 6 lakh on SBI Life Insurance Company for violation of various norms.
The Insurance Regulatory and Development Authority (IRDA) has also reprimanded SBI Life saying "... Business practices adopted by life insurer (SBI Life) and the intermediaries involved, severely dent the faith of insuring public".
The regulator has fined SBI Life for paying higher commissions to intermediaries, which pre-dominantly include State Bank of India and its associate banks.
It said SBI Life sold the two-year policy under the Dhanaraksha Plus scheme as a single premium policy. It also did not give informed choice to the insured.
As regards premium, the order said, it was paid to corporate agents over and above the eligible two percent commission.