Indian Insurance Regulator Fines Future Generali Life Insurance

India's insurance sector regulator (IRDA) has imposed a fine of Rs 20 lakh (US$38 828) on Future Generali Life Insurance for allowing unauthorised entity to solicit business on its behalf.

"Unlicensed individuals have solicited business for an entity -- Insurance For You (Future) -- that has not been approved by the Authority as Corporate Agent. This is in violation of Authority circular," the IRDA said in an order.

The Insurance regulatory and Development Authority (IRDA) has carried out investigations in the Hyderabad branch office of Future Generali Life between April 7, 2011 and April 8, 2011.

Future Generali Life Insurance is the joint venture between Future Group of India and Italy based Generali Group.

The IRDA said this is a substantive violation where the insurer has permitted various unlicensed individuals to solicit and procure business through Insurance For You (Future) when the entity itself was not licensed.

"Taking into account the seriousness of violation, a penalty of Rs 20 lakh is imposed on the insurer.. The penalty shall be paid within a period of 15 days," it added.

The IRDA has rejected the contention of the insurer that business booked by the individual agent was "inadvertently categorised under corporate agency."

The order said "the insurer has not been able to explain the reasons for signing of the Agents Confidential Report by persons other than the agents".

During the course of personal hearing Future Generali Life was represented by its CEO Deepak Sood and Complaince Officer Madan Jalan.