Money-laundering probe: IRDA report likely in a week

Our Bureau Updated - March 12, 2018 at 04:03 PM.

T. S. Vijayan, Chairman, IRDA

The Insurance Regulatory and Development Authority (IRDA) is likely to complete investigation into the alleged money-laundering transactions of insurers within a week.

“Our inspections teams have been deputed to some insurance companies and the process is on. We may have a report ready within a week on the issue,” T. S. Vijayan, Chairman, IRDA, told newspersons on the sidelines of a seminar held here.

It may be recalled that online magazine Cobrapost.com caught some officials of ICICI Bank, HDFC Bank and Axis Bank on camera allegedly offering to convert black money into legitimate money.

The Reserve Bank of India had initiated an enquiry into the matter. The IRDA had also taken up the matter and major insurers, HDFC Life, ICCI Prudential and Max Life, have come under its scanner.

Last month, it asked the CEOs of these insurance firms to submit relevant data for initiating appropriate action.

When asked whether there would be any review of investment norms of insurers in a single entity, including the Life Insurance Corporation of India, Vijayan, who headed LIC earlier, said “there should be level-playing field.”

The variations in the assets should be taken into consideration while fixing the caps, he said, adding that the regulator had revised the investment norms upwards in February this year.

According to the new norms, life insurers can invest up to 15 per cent in a single entity.

On the performance of life insurers during the financial year ended March 31, 2013, Vijayan said the new premium income had come down slightly.

IRDA is yet to release the business figures for 2012-13.

>naga.gunturi@thehindu.co.in

Published on April 21, 2013 15:30