The Insurance Regulatory & Development Authority (IRDA) on Tuesday slapped Max Life Insurance with a fine of Rs 10 lakh for breaching its guidelines pertaining to payouts made to a corporate agent.

Made to corporate agent Barclays Investments and Loans (India) Ltd for the financial years 2008-09 and 2009-10, the two payouts of Rs 5 lakh each were over and above permitted commission limits.

In its ruling, the insurance regulator said, "The insurer (Max Life) is imposed a penalty of Rs. 10 lakh for payouts made to corporate agent Barclays Investments & Loans (India) Ltd apart/over and above permissible commission limits...."

According to available details, the private sector insurer made payouts in an excess amount of around Rs 4.57 crore in the financial year 2008-09 and around Rs 51 lakh in the financial 2009-10 to Barclays Investments and Loans (India) Ltd.

The regulator also directed the insurer to make sure that it firmly stick to the Insurance Act, 1938, as well as obey all regulations, guidelines and circulars issued from time to time.

Meanwhile, insurance experts believe that the insurance regulator's new health norms declaring a total of 199 items to be excluded from those that are being payable by insurance firms would lead to a decline in the practice of charging deposits in cash-less policies by hospitals.