IRDA has booked Future Generali Life Insurance for violating regulations and imposed a fine of Rs.20 lakhs. IRDA carried out a surprise inspection at the Hyderabad Branch Office of the captioned Insurer to investigate business by an unlicensed entity – M/s. Insurance For You (Future).
The inspection was conducted from 07/04/2011 to 08/04/2011.
IRDA found that unlicensed individuals have solicited business for an entity “Insurance For You (Future)†that has not been approved by the Authority as Corporate Agent. This is in violation of Authority’s Circular No. IRDA/CIR/010/2003 dated 27/03/2003.
The Insurer’s contention that the business booked by the individual agent was inadvertently categorized under corporate agency was not acceptable. The Insurer has also not been able to explain to the satisfaction of the Authority, the reasons for signing of the Agents Confidential Report by persons other than the agent.Â
This is a substantive violation where the Insurer has permitted various unlicensed individuals to solicit and procure business through Insurance For You (Future) when the entity itself was not licensed. Taking into account the seriousness of the violation, a penalty of Rupees Twenty Lakhs was imposed on the Insurer under section 102(b) of the Insurance Act, 1938.
