- The Insurance Regulatory and Development Authority of India (IRDAI) has taken strict action against IndusInd Bank for non-compliance with regulations governing insurance business.
- The regulator has imposed a penalty of ₹1 crore on the bank. This action follows the discovery of several lapses in the bank's bancassurance operations.
- The IRDAI conducted an on-site inspection of the bank's bancassurance operations between June 19 and June 22, 2023.
- The inspection revealed that the bank lacked a dedicated and adequate mechanism for resolving insurance-related customer grievances.
- Instead, insurance-related complaints were being handled through the general banking grievance redressal system.
- Furthermore, the bank was found to lack proper systems for sending essential policy renewal-related notifications to policyholders.
- Deficiencies were also observed regarding the display of mandatory regulatory information and details concerning grievance redressal. Viewing these violations seriously, the IRDAI imposed a monetary penalty on the bank.
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Economics
