IRDAI imposes Rs 1 crore penalty on Cholamandalam MS General Insurance

The Insurance Regulatory and Development Authority has imposed a penalty of Rs 1 crore on Cholamandalam MS General Insurance after the insurer was found in violation of corporate governance guidelines.

Suspicions were raised on the business transactions of Cholamandalam MS General Insurance after it failed to report funds paid to Ashok Leyland and Cholamandalam MS Risk Services.

Transactions with Cholamandalam MS Risk Services were not brought before the Cholamandalam MS General Insurance board, raising suspicions about the dealings as the risk services venture was not reported as a related party.

Source: CNBC TV18