IRDAI Slaps ₹1 Crore Fine on ICICI Lombard
What Happened
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on ICICI Lombard General Insurance for lapses in outsourcing practices, vendor management, and corporate governance. The regulator said the insurer failed to properly classify certain event-management services involving agents of other insurers as outsourced activities and did not report related expenses in its outsourcing returns.
Key Takeaways
The action highlights IRDAI’s focus on stronger governance and transparency in outsourcing arrangements. The regulator said the reporting lapses prevented timely regulatory scrutiny, underscoring the need for stricter oversight of third-party vendor relationships in the insurance sector.