Hyderabad, July 5: The Insurance Regulatory and Development Authority has imposed a penalty of Rs 15 lakh on Indusind Bank Ltd for violating corporate agency norms.
Indusind Bank is a corporate agent of Cholamandalam General Insurance Company and Aviva Life Insurance Company.
On the basis of data submitted by Cholamandalam General Insurance, the regulator has found that Indusind had received higher payments than permissible from the insurer as a corporate agent.
The payments were received in the form of database sharing/incentives to the employees of corporate agent and infrastructure setting up costs for the three financial years commencing from 2007-08, IRDA said in an order.
Indusind Bank was ordered to pay Rs 5 lakh fine for each of the three financial years within 15 days, according to order.