Insurance regulator IRDAI has imposed a fine of Rs 5 crore on PB Fintech's online insurance aggregator - Policybazaar - over regulatory lapses related to directorships held by key managerial personnel, a company filing said August 5, sending shares lower by close to two percent to the day's low.
"...IRDAI issued an Order dated August 04, 2025, levying a penalty in aggregate of Rs. 5 crores for violation of provisions of applicable IRDAI Regulations with respect to certain aspects pertaining to Directorships held by Key Managerial Personnel (KMPs) and principal officer (PO), product display, Outsourcing Agreements, tagging of policies and premium remittance," a company statement said.
The penalty is also related to aspects pertaining to its principal officer (PO), product display, Outsourcing Agreements, tagging of policies and premium remittance, PB Fintech added.
IRDAI had inspected Policybazaar back in June 2020 and had issued a show-cause notice to PB Fintech in October 2024.
PB Fintech said IRDAI has also issued 'additional directions/advisory' and advised to comply with those in a time‐bound manner. The company did not specify what those additional directions are.
The management said the financial impact of the penalty is restricted to the amount stated, and it expects no impact on the operation or other activities of Policybazaar. The order shall be placed before the Board in the upcoming board meeting and action taken report will be submitted to the authority, it added.
In a separate matter, market regulator Sebi had in June 2024 issued a Show Cause Notice to Yashish Dahiya, Chairperson and CEO of PB Fintech over a Dubai investment made in 2022.
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