The penalty pertains to funds made by the insurer below the top ‘gross sales advertising and marketing and enterprise help.’ Throughout FY19, ICICI Lombard had incurred ₹709.57 crore below this head, of which the insurer mentioned that about ₹35-37 crore was paid to particular person brokers of different insurers.
Irdai mentioned the insurer used brokers of different insurers for occasion administration actions, with out enough supporting paperwork, and didn’t classify the actions as outsourced or report them in outsourcing returns.
“By not classifying occasion administration companies as outsourced exercise, the insurer didn’t report these bills within the Outsourcing Returns thereby avoiding regulatory scrutiny in time,” IRDAI mentioned in its September 7 order.
