Max Life Insurance Company Limited, a joint venture between Max Financial Services and Axis Bank, said on Monday that it will pay the penalty that was levied by the Insurance Regulatory and Development Authority but believes that it has done nothing wrong. The company was fined Rs 3 crore by the authority over non-compliance of norms.
“With a view to pave the way for the future including strengthening the long partnership with Axis Bank and avoid unnecessary and long legal escalations, Max Life has decided to pay the penalty imposed by the IRDAI, while it is of the belief of not committing any wrongdoing,” it said in a regulatory filing.
This penalty arose out of the deal in April, 2021 that made Axis Bank and its subsidiaries Axis Capital and Axis Subsidiaries co-promoters of Max Life following an acquisition of 12.99 per cent stake.
Recent transactions involving Axis Bank and Max Financial Services Limited (MFSL) with respect to transfer of shares to Max Life came under the scanner of the authority that alleged “non-compliance of certain terms of its approvals granted”. The bank said that these transactions were duly approved by the board and shareholders of Max Life and MFSL. The amount fined by the IRDAI on Max Life was Rs 3 crore.
Analjit Singh, Chairman of Max Life Insurance, said, “Max Life and its shareholders have always conducted their affairs in compliance with applicable laws and will continue to abide by the same and will work with all earnestness to create value for all its stakeholders. The aforesaid transactions were undertaken in a bona-fine manner. However, keeping the best interest of the company and its stakeholders in mind, we have resolved to remit the payment towards the penalty.”
Further, Axis Bank is committed to its long-term association with Max Life as its promoter and bancassurance partner, it said.
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