Irdai imposes penalty of Rs 40 lakh on Reliance Nippon Life Insurance Company

Insurance regulator Irdai said Tuesday it has imposed a penalty of Rs 40 lakh on Reliance Nippon Life Insurance Company (RNLIC) for violation of various regulatory norms.

The Insurance Regulatory and Development Authority of India (Irdai) has also asked the company to submit an action report with regards to directions issued by the authority within 90 days.

According to the Irdai order, penalties totalling Rs 40 lakh mainly relate to a violation of norms with regard to 'outsourcing guidelines'.

RNLIC's Board has also been asked to look into the lack of due diligence before selecting outsourcing service providers who are often not in the primary business of providing the services contracted for.

Reliance Nippon Life Insurance Company is a part of Reliance Capital, one of India's leading private sector financial services companies.

Nippon holds 49 per cent stake in the insurance company.