IRDAI Imposes ₹1 Crore Penalty on Reliance General Insurance for Compliance Shortfalls

The Insurance Regulatory and Development Authority of India (IRDAI) fined Reliance General Insurance Company Ltd ₹1 crore on December 30, 2025, for breaches under Sections 102-105 of the IRDAI Act. Violations spanned solvency requirements, policyholder data reporting, and unauthorized investment practices over FY24.
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Key Highlights

• Fine Amount: ₹1 crore, payable within 15 days; additional scrutiny on remediation plans.
• ​Core Violations: Failure to maintain required solvency ratio, delayed claim settlements, and non-adherence to product approval norms.
• ​Timeline: Order issued post audit; company response due by January 30, 2026.
• ​Market Reaction: Reliance General shares dipped 1.2% intraday; parent Reliance Industries unfazed per filings.
• ​Regulator Stance: Part of IRDAI's 2025 enforcement drive, with 15+ similar penalties issued this quarter.

Industry Impact
This action reinforces IRDAI's zero-tolerance for lapses, signaling heightened compliance demands as insurance penetration targets 5% by 2030.

Sources: Economic Times, Business Standard, PTI, CNBC TV18.