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Informist, Friday, Dec. 26, 2025

NEW DELHI – The Insurance Regulatory and Development Authority of India has imposed a penalty of INR 10 million on Reliance General Insurance Co. Ltd. for breach of regulations by outsourcing certain activities.

The company was penalised as it had made pay outs of approximately INR 51.6 million during 2018-19 (Apr-Mar) to Glitterbug Technologies Pvt. Ltd., the parent company of Coverfox Insurance Broking Pvt. Ltd. "From the invoices furnished by the insurer, it was observed that the services for which GTPL raised invoices had no bearing with the scope of services specified in the Agreement and were paid on account of "Consumer Awareness Programme". It was also observed that one of the directors in GTPL named Mr Sanjib Jha was holding directorship in CIBPL," the regulator said in its order.

Reliance General also made arbitrary pay outs to an individual who was an agent of Oriental Insurance Co. Ltd. The company also paid around INR 29.2 million, INR 53.3 million, and INR 945,000 to an unlicensed entity, Suvidhaa Infoserve Pvt. Ltd. purportedly for marketing and advertisement services under the terms of the agreement.

The insurer will have to place IRDAI's order before the its board in the upcoming board meeting. The insurer will also have to submit an action taken report to the IRDAI within 90 days.  End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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