Acko General Insurance fined Rs 1 crore by IRDAI: Will you be affected if you bought a policy from Acko?

India’s insurance watchdog, IRDAI (Insurance Regulatory and Development Authority), recently fined general insurer Acko Rs 1 crore for multiple regulatory lapses in its outsourcing and commission practices. These include engaging with Ola Financial Services Private Limited (OFSPL) to solicit or aid in selling insurance policies, even when OFSPL was not legally authorised to do so.

Moreover, the payments made by Acko to OFSPL were largely in the nature of commission/remuneration and rewards for such solicitation, made under the guise of paying them for advertisement, web branding, and API infrastructure service fees, which flout the provisions of the Insurance Act, 1938.