IndusInd Bank slapped with ₹1 cr penalty by IRDAI for corporate agent norms violation
The IRDAI has fined IndusInd Bank ₹1 crore for failing to maintain a proper grievance redressal system for insurance policyholders. The regulator found that the bank's digital complaint portal was non-functional during verification tests.
Why it matters
This regulatory action underscores the importance of consumer protection and compliance standards in the banking and insurance sectors.
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of ₹1 crore on IndusInd Bank for violation of norms governing corporate agents.
The corporate agent, IndusInd Bank, failed to establish a dedicated, policyholder-facing grievance redressal framework, improperly relying on generic banking mechanisms rather than providing insurance-specific IVR or website channels. Further, after promising compliance during regulatory proceedings, it submitted representations and screenshots of a grievance portal that, upon test verification by the Authority, proved non-functional and failed to generate complaint acknowledgments, IRDAI said in a release on Friday.
The regulator directed IndusInd Bank to pay a penalty of ₹1 crore under Section 102 of the Insurance Act, 1938, for violation of Regulation 20(1) of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in