Chennai: Shriram Life Insurance Company and New India Assurance Company Ltd have been fined Rs.500,000 each by the Insurance Regulatory and Development Authority (IRDA) for not complying with stipulated norms.

Shriram Life Insurance - a joint venture between Shriram Group, Chennai and Sanlam, South Africa - has been fined for failing to meet business obligations relating to social sectors.

As per IRDA rules, life and non-life insurers have to cover a specified number of lives every year.

According to IRDA's annual report for 2006-07 released recently, for the second year in succession Shriram Life did not comply with the regulations.

As per the regulations, Shriram Life should have covered 7,500 lives during financial year 2007-08 but covered just 5,952.

IRDA has fined the company and asked it to make up for the shortfall during the current financial year.

The other private life insurer who has failed to meet the stipulated social sector obligation is Bharti Axa Life Insurance Company Ltd.

The company, which started operations in August 2006, was obliged to cover 3,333 lives but covered 3,067.

The insurance regulator waived the shortfall as the life insurer was in its first year of operations.

Other than these two, the remaining 14 life insurers met their social sector obligations.

In the case of non-life insurers, except New India Assurance Company Ltd all the seven other companies complied with the norms.

IRDA has also levied a penalty of Rs.500,000 on New India Assurance and advised it to meet the shortfall during the next two fiscals.