IRDAI slaps Rs.5 crores fine on Policibazaar for violating norms
The regulatory authority had begun its probe on the company in 2020
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed Rs.5 crores on Policybazaar (online aggregator PB Fintech’s arm) for violating the rules.
It was accused of breaking IRDAI Regulations on directorships held by Key Managerial Personnel (KMPs) and principal officer (PO), product display, Outsourcing Agreements, tagging of policies, and premium remittance.
In June 2020, Policybazaar was inspected and in October 2024, PB Fintech was served with a show-cause notice, providing an opportunity for a personal hearing and additional submissions. It also advised the company to ensure compliance in a time-bound manner.
However, PB Fintech has stated that the IRDAI order was unlikely to affect Policybazaar’s operations. It added that the penalty matter would be discussed at the upcoming board meeting and the regulatory authority would be sent the report, citing the action taken.