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ICICI Lombard Fined ₹1 Crore by IRDAI for Lapses

8 Sep

Summary

IRDAI fined ICICI Lombard ₹1 crore for compliance failures.
Lapses included outsourcing, vendor screening, and governance.
The fine stems from a 2019 inspection and enforcement process.

ICICI Lombard General Insurance faces a ₹1 crore penalty from the Insurance Regulatory and Development Authority of India (IRDAI). The fine was imposed after a 2019 inspection revealed significant lapses.

These breaches spanned outsourcing practices, vendor vetting, record management, and internal governance standards. IRDAI confirmed these violations after reviewing inspection findings and hearing the company's defense.

The penalty is issued under Section 102 of the Insurance Act, 1938, related to outsourcing and corporate governance regulations. IRDAI also flagged concerns regarding unallocated premiums and slow processing of free-look cancellations.

The insurer must now present the order to its Board and submit an Action Taken Report. IRDAI stated this action is part of a broader initiative to enhance industry governance and policyholder protection.

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