Controls on management can better curb norms violation: IRDA

MUMBAI: The Insurance Regulatory and Development Authority (Irda) has said that controls on management is a better way to curb breach of expense norm to deal with non-compliance than imposing nominal monetary penalties.

“If they are breaking the expense limit what are the penalties. Previously it used to be penalty.

The moment we said we are going to control the branches that put the people on alert,“ said Irda chairman TS Vijayan on the sidelines of the 18th Global Conference of Actuaries in Mumbai.

When the expenses go up, the shareholders are supposed to put in the money , said Vijayan. “Beyond a point if the volumes do not justify shareholders, we would like to alert the customers.

It has to be profitable in the long run...If they want to be profitable or be running profitably a certain mix is required,“ he said.

As per the current norms, the salary of CEOs beyond ` . 1.5 crore is borne by the shareholders.