Max Life to pay IRDAI penalty, however insists did ‘nothing incorrect’

Max Life Insurance coverage Firm Restricted, a three way partnership between Max Monetary Companies and Axis Financial institution, mentioned on Monday that it’ll pay the penalty that was levied by the Insurance coverage Regulatory and Improvement Authority however believes that it has completed nothing incorrect. The corporate was fined Rs 3 crore by the authority over non-compliance of norms.

“With a view to pave the way in which for the longer term together with strengthening the lengthy partnership with Axis Financial institution and keep away from pointless and lengthy authorized escalations, Max Life has determined to pay the penalty imposed by the IRDAI, whereas it’s of the assumption of not committing any wrongdoing,” it mentioned in a regulatory submitting.

This penalty arose out of the deal in April, 2021 that made Axis Financial institution and its subsidiaries Axis Capital and Axis Subsidiaries co-promoters of Max Life following an acquisition of 12.99 per cent stake. 

Current transactions involving Axis Financial institution and Max Monetary Companies Restricted (MFSL) with respect to switch of shares to Max Life got here below the scanner of the authority that alleged “non-compliance of sure phrases of its approvals granted”. The financial institution mentioned that these transactions had been duly authorised by the board and shareholders of Max Life and MFSL. The quantity fined by the IRDAI on Max Life was Rs 3 crore. 

Analjit Singh, Chairman of Max Life Insurance coverage, mentioned, “Max Life and its shareholders have all the time carried out their affairs in compliance with relevant legal guidelines and can proceed to abide by the identical and can work with all earnestness to create worth for all its stakeholders. The aforesaid transactions had been undertaken in a bona-fine method. Nevertheless, protecting one of the best curiosity of the corporate and its stakeholders in thoughts, we’ve resolved to remit the cost in direction of the penalty.”

Additional, Axis Financial institution is dedicated to its long-term affiliation with Max Life as its promoter and bancassurance accomplice, it mentioned.

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