The Insurance Regulatory and Development Authority of India (IRDAI) has levied a penalty of Rs 1 crore on Reliance General Insurance Company for breaching various regulatory norms concerning insurance intermediaries, outsourcing, and corporate governance. This penalty follows a remote inspection conducted by IRDAI between December 27 and December 31, 2021.
After reviewing the inspection results, IRDAI issued a show-cause notice to the insurer on November 29, 2024, to explain the observed irregularities. Reliance General Insurance responded in January 2025 and presented its case during a personal hearing on March 5, 2025.
The regulator, after assessing the responses, issued its final order on December 26, 2025. IRDAI highlighted instances where the insurer’s payments did not comply with regulatory guidelines, including payments to related parties of insurance brokers, an individual insurance agent associated with another insurer, an unlicensed entity, and certain corporate agents.
