Irda Imposes.Rs.5 Lakh Fine Each on 6 Non-Life Insurance Comp

The Insurance Regulatory and Development Authority (Irda) has imposed a fine of.Rs.5 lakh on each of the six non-life insurance companies New India Assurance, National Insurance, ICICI Lombard, Iffco Tokio, Royal Sundaram and Bajaj Allianz for violating norms by appointing various outfits of Maruti Suzuki as corporate agents. The regulator said these companies have failed to comply with the provisions of the Insurance Act while appointing group entities of Maruti Suzuki as corporate agents. As against the regulation, Maruti Suzuki held 99. 99% stake in corporate agents under different names such as Maruti Insurance Business Agency, Maruti Insurance Agency Services, Maruti Insurance Agency Logistics, Maruti Insurance Agency Solutions and Maruti Insurance Distribution Services. However, a promoter of corporate agency is not allowed to hold more than 10 % stake in another corporate agency. - www.economictimes.indiatimes.com