IRDA fines Tata AIG

Tata AIG Life Insurance has been penalised Rs 5 lakh by the insurance regulator for failing to adhere to guidelines relating to management expenses.

In a statement issued on Thursday, Irda said management expenses of the life insurer for 2008-09 was 114.90% of the premium, which is beyond permissible limits under Section 40B of the Insurance Act, 1938, read with Rule 17D of Insurance Rules, 1939. Following this, the regulator directed Tata AIG on October 2009 to bring down its expenses of management below 110% by the year 2009-10 and below 100% by 2010-11.

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