Insurance Regulator Update

IRDAI Imposes Rs. 1 Crore Fine on Acko General Insurance for Regulatory Violations

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The Insurance Regulatory and Development Authority of India (IRDAI) has levied a penalty of Rs. 1 crore on Acko General Insurance for breaching outsourcing regulations and violating norms related to commission, remuneration, and rewards paid to agents and intermediaries.

In its order, the regulator directed that the matter be placed before the insurer's board at its next meeting, and a copy of the board's discussion minutes be submitted. Acko General has also been instructed to provide an action taken report within 90 days of the order's issuance.

The penalty follows IRDAI's assessment that the company failed to comply with the provisions governing outsourcing of insurance activities and compensation arrangements with its distribution partners, which are critical for ensuring transparency and fair market practices in the insurance industry.