IRDA imposes penalties on 10 insurance cos: Pranab

NEW DELHI: The government today said insurance regulator IRDA has imposed penalties on 10 insurance companies, including Life Insurance Corporation, in the previous two financial years 2008-09 and 2009-10 for violation of regulations.

Besides LIC, the IRDA imposed penalties on Max New York Life, ICICI Lombard, National Insurance Company, United India Insurance, New India Assurance, Apollo Munich Health Insurance, HDFC Standard Life, Reliance General Insurance and General Insurance Corporation, Finance Minister Pranab Mukherjee informed the Rajya Sabha.

Insurance Regulatory and Development Authority (IRDA) imposed penalty on LIC, HDFC Standard Life and Apollo Munich Health for non-achievement of social and rural targets while GIC was short of investment in central government securities, he said.

"The Authority carries out regular inspections of insurers to monitor compliance of the guidelines of IRDA," Mukherjee said.

Penalty was imposed on New India Assurance for not filing the quarterly financial and solvency statement in time while Max New York Life was charged penalty for violating directions issued by IRDA in respect of unit linked insurance policy.