Diversified financial services group Religare Enterprises Ltd on Monday (December 16) said its material subsidiary, Care Health Insurance Ltd (CHIL), has received a letter of advice and a show-cause notice from the Insurance Regulatory and Development Authority of India (IRDAI).
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“…we wish to inform that the Care Health Insurance Limited (CHIL), a material subsidiary of the Company (Religare Enterprises Limited, the Company), is in receipt of a Letter of Advice and a Show cause notice dated December 13, 2024, issued by the Insurance Regulatory and Development Authority of India (IRDAI) based on the inspection of the CHIL carried out by IRDAI during the period between August 30, 202,1 and September 09, 2021 and the submissions made by CHIL regarding the inspection,” Religare Enterprises said in a regulatory filing.
This follows an inspection by IRDAI from August 30, 2021, to September 9, 2021, and CHIL’s submissions in relation to the inspection. The notice details non-compliance with several provisions of IRDAI’s regulatory framework, including multiple clauses from the master circulars on operations, corporate governance, and protection of policyholders’ interests.
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CHIL is currently working on initiating corrective actions as advised and preparing a response to the show-cause notice. The company has assured that no financial or operational impact is expected at this stage and that compliance with the regulations will be ensured within the stipulated timeframe.
“The Advisory Letter requires CHIL to confirm the compliance within 21 days of receiving it. CHIL is in the process of ensuring that the directions in the Advisory Letter are complied with. CHIL will furnish its reply to the Show-cause notice along with the supporting documents. Accordingly, the company believes that there is no financial or operational impact on the Company or CHIL at this stage,” it said.
Shares of Religare Enterprises Ltd ended at ₹301.15, down by ₹2.20, or 0.73%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
