Violations of Insurance Regulations: An Analysis of Recent Penalty Orders issued by IRDAI toward Life and General Insurance Industry.

The main objective was to examine the various enforcement action (penalties) which were imposed by IRDAI on Life and General insurance industry for violation of various insurance rules and regulations. The research was a fact-finding descriptive research based on historical penalty orders published by IRDAI. After analysing the 67 orders published on IRDAI website, it was found that penalty amounting to Rs 1190 lakhs was imposed on general insurers and Rs 206 lakhs was imposed on life insurers. Total penalty amount combined for life and general insurers was 1396 lakhs. Out of which 607 lakhs (43.48%) was related to uncommon category violation and 789 lakhs (56.52%) was related to common category violation between life and general insurers. Total frequency of violation for general and life insurance industry combined was 127 times, with common category violation was 101 times (79.52%) and uncommon category violation was 26 times (20.48%). [ABSTRACT FROM AUTHOR]