MANU/IRDA/0019/2016

Authority : Insurance Regulatory and Development Authority

Order No. : IRDA/ENF/MISC/ONS/128/06/2016

Date : 28.06.2016

Notification/ Circulars Referred : IRDA/LIFE/CIR/GLD/013/02/2011 dated 01/02/2011 MANU/IRDA/0013/2011

Subject: Insurance

Industry: Insurance

Citing Reference:
IRDA/LIFE/CIR/GLD/013/02/2011 dated 01/02/2011 MANU/IRDA/0013/2011  Referred

Final Order in the matter of Max Life Insurance Company Limited

Based on reply to Show Cause Notice dated 24th February, 2016 and submissions made during Personal Hearing chaired by Mrs. V.R. Iyer, Member (F&I), Insurance Regulatory and Development Authority of India (IRDAI) on 25th May, 2016 at 11:30 AM at the office of Insurance Regulatory and Development Authority of India, 3rd Floor, Parishrama Bhavanam, Basheerbagh, Hyderabad.

The Insurance Regulatory and Development Authority of India (hereinafter referred to as "the Authority") carried out an onsite inspection of M/s. Max Life Insurance Company Limited, (hereinafter referred to as "the Life Insurer/Company") from 25th February, 2013 to 7th March, 2013. A copy of the report was forwarded to the Life Insurer on 30th May, 2013 and the reply was received at the Authority vide letter dated 17th June, 2013. Post scrutiny of the first compliance, the Authority had raised further queries vide email dated 26th November, 2015 which was responded to by the Life Insurer vide email dated 1st December, 2015. On examining the submissions made (in above referred letter and email) by the Life Insurer to the inspection observations, it is observed that the Life Insurer has not complied with the applicable provisions of the Insurance Act, 1938, IRDA's Regulations, guidelines framed there under. A show cause notice was issued vide letter dated 24th February, 2016 which was responded to by the Life Insurer on 4th April, 2016. As requested by the Life Insurer, in his reply to Show Cause notice, a personal hearing was also held on 25th May, 2016 to hear out the submissions of the Life Insurer in person. Mr. Rajesh Sud, CEO, Mr. Prashant Tripathy, CFO, Mr. V. Viswanand, COO, Mr. Amitabh Lal Das, CLO and Mr. Jose John, Appointed Actuary were present on behalf of the Life Insurer. On behalf of the Authority, Mr. Lalit Kumar, FA & HoD (Enforcement), Mr. V. Jayanth Kumar, JD (Life), Mr. Prabhat Kumar Maiti, JD (Enforcement) and Mr. K. Sridhar Rao, Sr. Assistant Director (Enforcement) were present in the personal hearing.

During personal hearing, some more clarifications were also sought and they were called for vide email dated 31st May, 2016. The Life Insurer submitted their response to the same vide email dated 1st June, 2016.

All the submissions made by the Life Insurer as above and also those made during the course of the personal hearing were taken into account.