IRDAI Fines ICICI Lombard ₹1 Crore Over Outsourcing And Compliance Lapses
September 8, 2026 • Economy
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on ICICI Lombard General Insurance for lapses related to outsourcing, vendor management and corporate governance. The action followed an inspection conducted in 2019, with the regulator later examining the company’s compliance with the applicable rules.
IRDAI found issues concerning the classification and reporting of certain outsourced activities, vendor due diligence, record maintenance and internal controls. The regulator also issued separate advisories over matters including unallocated premiums and delays in processing some free-look cancellation refunds.
ICICI Lombard has been directed to place the order before its Board and submit an Action Taken Report to IRDAI within the stipulated period. The company has stated that the financial impact is limited to the ₹1 crore penalty.