IRDAI – Order in the matter of Nissan Renault Financial Services India Pvt. Ltd.

The Insurance Regulatory and Development Authority of India (“IRDAI/Authority”) issued an order in the matter of Nissan Renault Financial Services India Pvt. Ltd. (hereinafter referred to as the “Corporate Agent” or “CA”) vide Order Ref. No. IRDAI/E&C/ORD/MISC/077/05/2026 dated May 27, 2026 (“Order”), with respect to the onsite inspection conducted by the Authority from September 17, 2024 to September 20, 2024, imposing a penalty of ₹1 crore for violations of the Guidelines on Motor Insurance Service Providers, 2017 (“MISP Guidelines”) and other applicable regulatory provisions.

Background

• The Authority conducted an onsite inspection from September 17, 2024, to September 20, 2024. Pursuant to the inspection, certain instances of non-compliance with the provisions of the Insurance Act, 1938, IRDAI (Registration of Corporate Agents) Regulations, 2015 and MISP Guidelines were observed.
• Based on the inspection findings and response submitted by the Corporate Agent, the Authority issued a Show Cause Notice (“SCN”) dated December 8, 2025. The Corporate Agent submitted its response on December 30, 2025 and requested a personal hearing.
• A personal hearing was conducted on March 11, 2026, before Shri Rajay Kumar Sinha, Member (F&I) and Shri Swaminathan Iyer, Member (Life). Further submissions were made by the Corporate Agent vide email dated March 20, 2026.

Summary of Observations and Decisions

Charge	Violation	Observation of the Authority	Decision of the Authority
1	Violation of Regulation 14(vi) of the CA Registration Regulation.Regulation 18(b) of IRDAI (Minimum Information Required for Investigation and Inspection) Regulations, 2020.	1,813 policies and certain proposal forms were not tagged to any Specified Person (SP), Distribution Person (DP) or Motor Insurance Service Provider (MISP). The Corporate Agent attributed the discrepancy to a system reporting issue and demonstrated that adequate controls were implemented for mandatory SP/DP tagging.	Charge not pressedThe Authority accepted the submissions of the Corporate Agent and did not press the charge.
2	Violation of Regulation 24(1) of the CA Registration Regulation.	Instances of delayed remittance of premiums to insurers were observed. The Corporate Agent submitted that delays were mainly due to cheque payments, insurer-side issues, KYC requirements and technical errors.	Caution & AdvisoryThe Authority cautioned the Corporate Agent and advised continued compliance with regulatory requirements.
3	Violation of Clause 9 of Annexure 2 read with Clause 10(n), 14(f), 15(1), 15(5b) and 15(5c) of MISP Guidelines.	26 MISP agreements did not specify the quantum and manner of payment of distribution fees. The Authority noted deficiencies in governance, contractual clarity and record keeping.	Penalty of ₹1 CroreCharge established and penalty imposed along with Charge 4.
4	Violation of Clause 10(e), 10(i), 14(b) and 14(e) of MISP Guidelines.	Deficiencies were observed in monitoring, audit and reconciliation mechanisms for MISPs. Absence of SOP, inadequate audit documentation and deficiencies in premium reconciliation processes were observed.	Penalty of ₹1 CroreCharge established and penalty imposed along with Charge 3.
5	Violation of Clause 1 & 9(i) of Code of Conduct read with applicable provisions of MISP Guidelines.	Deficiencies relating to customer consent and policy communication for extended warranty policies were observed. Corporate Agent demonstrated enhanced system controls including OTP-based customer authentication.	Charge not pressedThe Authority accepted the submissions of the Corporate Agent.
6	Violation of Regulation 20(1), Clause 4(p), 4(q), Schedule-III read with Regulation 26(1) and Regulation 30(iv) of CA Registration Regulation.	Deficiencies were observed in grievance redressal framework including inadequate grievance records. Insurance complaints were incorrectly classified as service requests/enquiries.	WarningThe Authority advised strengthening of grievance redressal mechanisms and modification of Customer Service Charter.

Final Decision of the Authority

• The Corporate Agent violated certain provisions of the MISP Guidelines, 2017 relating to MISP agreements and monitoring and oversight of MISP activities.
• The Authority imposed a penalty of ₹1 crore under Section 102 of the Insurance Act, 1938 for violations established under Charges 3 and 4.
• The Authority cautioned the Corporate Agent regarding premium remittance lapses and issued a warning for deficiencies in grievance redressal mechanisms.
• The Corporate Agent was directed to remit the penalty amount within forty-five (45) days from receipt of the Order.
• The Order shall be placed before the Board of the Corporate Agent and minutes of discussion shall be submitted to the Authority.
• The Corporate Agent shall submit an Action Taken Report (“ATR”) to the Authority within ninety (90) days from the date of the Order.

The Authority further clarified that the Order is appealable under Section 110 of the Insurance Act, 1938 and the Corporate Agent may prefer an appeal before the Securities Appellate Tribunal (“SAT”).A copy of the Order is attached for your ready reference.Source category: IRDAI

Attachments

• 657_2026_05_27_-_Order_in_the_matter_of_Nissan_Renault_Financial_Services_India_Pvt__Ltd.pdf