• IRDAI imposes Rs 5 crore penalty on Policybazaar for multiple regulatory violations.
• Violations include lapses in KMP roles, product display, and premium remittance.
• PB Fintech clarifies no operational impact; compliance measures underway.

The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a Rs 5 crore fine on Policybazaar Insurance Brokers Pvt. Ltd., a group company of PB Fintech Ltd., for several violations of regulations observed during an inspection carried out in June 2020.

According to IRDAI’s official order dated August 4, 2025, the violations include lapses in the functioning of key managerial personnel, improper product display, non-compliant outsourcing practices, incorrect policy tagging, and irregularities in premium remittance.

"In exercise of powers under Section 102 of the Insurance Act, 1938, IRDAI has levied a penalty of Rs 5 crore on Policybazaar, and directions, advisories, and warnings for various contraventions under relevant insurance laws and regulations," the order added.

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PB Fintech revealed in a filing with the regulators that a show cause notice had been issued in October 2024, after the June 2020 inspection. Policybazaar was offered a hearing opportunity and to file documents in defense. IRDAI, after considering the same, found sufficient grounds for imposing the financial penalty.

Apart from the fine, IRDAI has ordered the taking of corrective measures in a time-bound manner. PB Fintech asserted that the directive would be put up for discussion at a future board meeting and a compliance report would be filed with the regulator.

The firm highlighted that the fine does not impact its current operations. Remarkably, PB Fintech reported a 347% quarter-on-quarter growth in net profit to Rs 84.5 crore in Q1 FY26 while revenue went up 33.5% to Rs 1,348 crore.