India · By NoorNews Editorial ·
Irdai fines ICICI Lombard Rs 1 crore
The Insurance Regulatory and Development Authority of India (Irdai) has imposed a penalty of ₹1 crore on ICICI Lombard General Insurance. The fine follows an inspection conducted by the regulator in 2019, which uncovered lapses in the company's outsourcing practices, vendor management, and corporate governance protocols.
According to the regulatory order dated September 7, the penalty stems from payments categorized under 'sales marketing and business support.' During the 2018-19 financial year, ICICI Lombard recorded ₹709.57 crore in expenses under this head. The regulator noted that approximately ₹35-37 crore of this amount was paid to individual agents associated with other insurance companies for event management services.
Irdai stated that the insurer failed to provide adequate supporting documentation for these payments and neglected to classify the event management services as outsourced activities. By omitting these services from its outsourcing returns, the company effectively bypassed timely regulatory scrutiny. This enforcement action highlights the regulator's ongoing efforts to ensure transparency and compliance within the Indian insurance sector regarding third-party vendor engagements.
Truth Score
85/100
Likely True
Why this score
The report is based on a specific regulatory order issued by the Insurance Regulatory and Development Authority of India (Irdai). As a standard regulatory action involving a major financial institution, it is consistent with the agency's oversight mandate and reporting practices.
Cross-checked against
No corroborating trusted sources found.
Original report: Economic Times