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BankingNABARD / RBI

Policybazaar ₹5 Crore IRDAI Penalty: Violations Listed

5 August 20251 min read
BANKING & FINANCEPolicybazaar ₹5Crore IRDAIPenalty:Violations Listed5 August 2025safalsetu.com

Why in the news

IRDAI penalised Policybazaar Insurance Brokers with a ₹5 crore fine, a notable action in online insurance sales.

Violations and rules breached

LapseRule
Ranking ULIPs and health plans as “Top Plans” without objective criteriaWeb Aggregators Regulations, 2017
Executives with undisclosed roles elsewhereIRDAI Guidelines, 2017: prior approval for KMP directorships
Delay in passing premiums to insurersWeb Aggregators Regulation 10(2)
Third-party payouts without agreementsOutsourcing Guidelines, 2017
Unmapped policies, incomplete call recordsWeb Aggregators Regulation 13(5)
Commission beyond capsCommission Regulations, 2023
Weak disclosure of related-party dealingsGovernance Guidelines, 2020

Exam angle

  • Regulator: IRDAI; fine: ₹5 crore.
  • Regulation 13(5): sales calls to be recorded and mapped.

Test yourself

1. How much penalty did IRDAI impose on Policybazaar Insurance Brokers?

The fine was ₹5 crore.

2. Which labelling by Policybazaar was held misleading by IRDAI in its penalty order?

Select ULIPs and health plans were called Top Plans without objective criteria.

3. Per the Policybazaar case notes, which rule requires sales calls to be recorded and mapped to authorised personnel?

Regulation 13(5) of the Web Aggregators rules covers call recording and mapping.

This topic is part of Daily Current Affairs 5 August 2025 (15 topics).

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