Max Life to remit payment towards the IRDAI penalty

Axis Bank Limited ("Axis Bank"), India's third largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities, is the co-promoter of Max Life Insurance Company Limited ("Max Life"), following an acquisition of 12.99% stake in April 2021 in the 4th largest private life insurance firm. The joint venture draws synergies from Axis Bank's strong distribution and Max Life's robust life insurance product offerings. Max Life and Axis Bank have shared a successful business relationship for over a decade, providing long-term saving and protection products to nearly 20 lakh customers, aggregating total premium of over Rs. 40,000 crores and over Rs 3.3 Lac Cr of Sum assured.

Recently, in transactions involving Axis Bank and Max Financial Services Limited ('MFSL) with respect to transfer of shares of Max Life, a material subsidiary of MFSL, which were all duly approved by the Board and Shareholders of Max Life and MFSL, Insurance Regulatory and Development Authority of India ('ÍRDAI') vide an order issued to Max Life imposed a penalty aggregating to Rs. 3 Crores alleging non compliance of certain terms of its approvals granted. With a view to pave the way for the future including strengthening the long-term strategic partnership with Axis Bank and avoid unnecessary and long legal escalations, Max Life has decided to pay the penalty imposed by the IRDAI,whileit is of the belief of not committing any wrongdoing.

Mr. Analjit Singh, Chairman of Max Life Insurance, said, "Max Life and its shareholders have always conducted their affairs in compliance with applicable laws and will continue to abide by the same and will work with all earnestness to create value for all its stakeholders. The aforesaid transactions were undertaken in a bona-fide manner. However, keeping the best interest of the company and its stakeholders in mind, we have resolved to remit the payment towards the penalty."

Further, Axis Bank is committed to its long-term association with Max Life as its promoter and bancassurance partner.

Shares of Max Financial Services Limited was last trading in BSE at Rs. 713.25 as compared to the previous close of Rs. 738.80. The total number of shares traded during the day was 225327 in over 10113 trades.

The stock hit an intraday high of Rs. 759.40 and intraday low of 664.95. The net turnover during the day was Rs. 154954096.00.

Source : Equity Bulls

Keywords

MaxFinancialServices INE180A01020 MaxLifeInsuranceCompany AxisBank IRDAI Penalty