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IRDAI Imposed ₹1.06 Crore Penalty on Flipkart for Violating Insurance E-commerce and Corporate Agency Regulations.

Economy Business | Dated: 15 Apr 2025

In April 2025, the Insurance Regulatory and Development Authority of India (IRDAI), headquartered in Hyderabad, Telangana, imposed a monetary penalty of ₹1.06 crore on Bengaluru (Karnataka)-based Flipkart Internet Private Limited (FIPL) for violating e-commerce guidelines related to online insurance distribution.

🎯 Key Highlights:

- FIPL has been instructed by IRDAI to remit the penalty within 45 days. The company also has the option to appeal the order before the Securities Appellate Tribunal (SAT).

💡 Other Important Facts:

(i) A fine of ₹1 crore was imposed for violating the Insurance E-commerce Guidelines, 2017, specifically the clause stating that an insurance intermediary can onboard only insurers as permitted on its Insurance Self-Network Platform (ISNP).
(ii) FIPL was found redirecting consumers to the “Buy Insurance” section of another insurance intermediary instead of the actual insurer's website.
(iii) An additional fine of ₹6 lakh was levied for continuing the sale and purchase of insurance policies via its platform even after its Certificate of Registration (CoR) expired on September 25, 2024, thereby violating Clause 3(ii)(a) of Schedule III read with Regulation 26 of the IRDAI (Registration of Corporate Agents) Regulations, 2015.

📚 Test Your Knowledge:

Recently, how much penalty did IRDAI impose on Flipkart Internet Private Limited (FIPL) for violations related to online insurance distribution?

Correct Answer: ₹1.06 crore

🚀 Quick Recap:

About Flipkart

CEO: Kalyan Krishnamurthy
Headquarters: Bengaluru