IRDAI Fines Acko General Insurance ₹1 Crore
Why in the news
The insurance regulator penalised a digital-first insurer for compliance lapses.
| Violation | Detail |
|---|---|
| Section 40(1) | Payments for procuring business allowed only to licensed agents or intermediaries |
| Outsourcing | Core activities improperly handed to a third party |
| Commission rules | Unauthorised rewards to unlicensed entities |
Implications
- Shows IRDAI’s strict stance on compliance in the insurance sector.
- Insurers are reminded to keep payments, outsourcing and rewards within statutory rules.
- Seen as among the first big penalties on a new-age digital insurer.
Exam angle
- Law: Insurance Act, 1938.
- Penalty: ₹1 crore.