Powers of IRDA for imposition of penalties for default in complying with the Act (Section 102) :
Section 102 empowers IRDA to impose a penalty not exceeding Rupees five lakhs for each of the following failures by an insurance company:
(a) Failure to furnish any document, statement, account, return or report to IRDA
(b) Failure to comply with the directions (Section 34 empowers IRDA to issue directions if it is satisfied to do so in the interests of public or for prevention of affairs being conducted detrimental to policyholders or to secure proper management of any insurer)
(c) Failure to maintain the required solvency margin
(d) Failure to comply with the directions on the insurance treaties
Further Section 105B empowers IRDA to impose a penalty not exceeding Rupees Five lakhs for failure to comply with Section 32B, while Section 105C empowers IRDA to impose a penalty not exceeding Rupees Twenty five lakhs for failure to comply with Section 32C, with cancellation of certificate of registration for continuing failure.