Insurance regulator IRDA has slapped penalty of Rs 25 lakh and Rs 5 lakh on Sahara Life and Aviva Life respectively for violation of regulations.
For the year ending March 2014, Sahara India Life Insurance Company did not fulfil the social sector obligation and hence a penalty of Rs 25 lakh has been imposed on the company, Insurance Regulatory and Development Authority (IRDA) said in an order.
The life insurer, in its ninth year of operation, had covered 16,174 lives as against the mandatory requirement of covering 45,000 lives under social sector obligations in the financial year 2013-14.
The IRDA said that the company has failed to comply with the social sector obligation for the second consecutive year in 2013-14.
As regards Aviva Life Insurance, the IRDA said the company has been violating not only certain regulatory provisions, but also the fundamental principles governing the contract of life insurance while underwriting or accepting the policies.
The IRDA said it has imposed a fine of Rs 5 lakh for not obtaining proper approval of customers on certain issues including extra mortality rate charge.