The renowned Max Life Insurance Co. Ltd., an insurer has not done the compliance of the directions issued by IRDAI and therefore the penalty of Rs. 1 crore by invoking a section 102(b) of the Insurance Act, 1938.
Section 102(b) of the Insurance Act, 1938 attracts the penalty for non-compliances with the orders or notifications as per the Act. The insurer has not obtained the approval for transfer of shares to Axis Bank and its group companies.
The charge by the authority is transfer of shares by not doing compliance which results in undue monetary consideration of substantial amount to corporate agent.
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