IRDAI issues advisory and show cause notice to Policybazaar following inspection

PB Fintech said that the Insurance Regulatory and Development Authority of India (IRDAI) has issued an advisory and a show cause notice to its wholly-owned subsidiary, Policybazaar Insurance Brokers Pvt Ltd, following an inspection conducted in October 2024.

IRDAI carried out an inspection of Policybazaar between October 21 and October 25, 2024. Based on certain observations arising from the review, the regulator issued a Letter of Advice relating to specific documentation and process-related matters, the company said in a filing to the stock exchanges.

The advisory requires the observations to be reviewed by the relevant board-level committees and the board, along with corrective and preventive measures taken by the company.

The regulator has also issued a show cause notice on some of the observations identified during the inspection. Policybazaar said it will submit its response to the authority within the prescribed timelines.

PB Fintech stated that the advisory does not have any material financial impact on the company. It added that Policybazaar has already implemented the necessary systems and processes and will continue to comply with regulatory guidelines issued by IRDAI.