Mis-sell and pay Rs. 1 crore fine

In its efforts to curb mis-selling of insurance, the IRDAI has come out with a gazette notification in which it has mandated to impose a fine of up to Rs 1 crore on insurance companies for mis-selling and violation of code of conduct of their agents. In the notification, the IRDAI said, “The insurer shall be responsible for all acts and omissions of its agents including violation of code of conduct specified under these regulations and shall be liable to a penalty which may extend to one crore rupees.” Moreover, for violating the code of conduct or misselling, the insurance regulator can impose a penalty of up to Rs 10,000 on insurance agents. Also, the regulation has restricted insurance agents to become directors in the insurer’s board.

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