5 Aug 2025: The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a fine of ₹5 crore on PB Fintech’s online insurance aggregator unit, Policybazaar. The penalty was levied due to violations of IRDAI’s guidelines.
In a filing submitted to the stock exchange on Tuesday, PB Fintech stated that the penalty pertains to regulatory violations related to directorships held by Key Managerial Personnel (KMPs) and the Principal Officer (PO), product display, outsourcing agreements, policy tagging, and premium remittance.
In addition, IRDAI has issued several other directives and advisories to the company, which must be complied with within the specified timelines. This action follows an inspection conducted in June 2020 and a show-cause notice issued in October 2024. The company said it is committed to complying with the regulator’s directives and is taking corrective steps.
Weakness in PB Fintech’s Stock
The news of the penalty imposed by IRDAI had an impact on PB Fintech’s stock. On Tuesday, the stock opened flat at ₹1779.75 on the BSE but soon fell by over 2.5% to ₹1736.
Summary:
The IRDAI fined Policybazaar ₹5 crore for 11 violations—including biased product listings, governance issues, outsourcing irregularities, and delayed premium remittance from its inspection report.