The Insurance Regulatory and Development Authority of India imposed an INR 10 million penalty on IndusInd Bank, acting as a corporate agent, for failing to maintain a dedicated grievance redressal framework for insurance policyholders. The enforcement action followed a June 2023 onsite inspection and subsequent proceedings that also identified deficiencies involving renewal notices and regulatory and website disclosures. IndusInd Bank relied on generic banking complaint mechanisms rather than insurance specific interactive voice response or website channels. During the proceedings, it provided representations and screenshots of a grievance portal that proved nonfunctional when tested by the authority and did not generate complaint acknowledgments. The regulator directed the bank to strengthen its grievance arrangements, place the order before its board and submit an action taken report within 90 days of the order. It also issued cautions and advisories concerning the other compliance deficiencies.
2026-09-10Insurance Regulatory and Development Authority of India
Insurance Regulatory and Development Authority of India fines IndusInd Bank INR 10 million over policyholder grievance failures
The Insurance Regulatory and Development Authority of India fined IndusInd Bank INR 10 million for failing to provide a dedicated, functioning grievance redressal framework for insurance policyholders. The bank must strengthen the framework, present the order to its board and submit an action taken report within 90 days of the order.