When a risk is accepted before receiving the premium it is considered as a risk and amounts to violation of a section of Insurance Act, 1938. On the issue of soliciting business from agents whose license had expired, IRDA said: "Solicitation of insurance business after expiry of license is a serious violation." In a separate order, the regulator imposed a fine of Rs 10 lakh on Agriculture Insurance Company of India for violation of various norms, including those related to guidelines on corporate governance.
In its submission before the regulator, the general insurer had accepted the lapse of not collecting intermediary details in the proposal form. There were 14 charges against the insurer and fine was imposed in two of the charges.
Source: Press Trust of India
Source: Medindia