IRDAI Fines Policybazaar Rs 5 Crore for Insurance Rule Violations

The Insurance Regulatory and Development Authority of India (IRDAI) has fined Policybazaar Rs 5 crore for breaking multiple insurance rules. The violations happened when Policybazaar was working as an Insurance Web Aggregator, before becoming a licensed broker in February 2024.

IRDAI found 11 issues, including:

• Promoting insurance products as "top" or "best" without clear reasons
• Poor management practices
• Delayed transfer of premium payments to insurance companies (against the 24-hour rule)

The regulator also fined Rs 1 crore for holding customer funds for too long using its own payment system.

Policybazaar’s parent company, PB Fintech, confirmed the penalty and said it will discuss the matter with its board.

The company's shares fell 1.8% after the news.