IRDAI fines Care Health Insurance Rs 1 cr, asks to cancel ESOPs issued to Rashmi Saluja

IRDAI Orders CHIL to Cancel ESOPs for Rashmi Saluja and Pay Rs 1 Crore Fine.

Expert Analysis:

• IRDAI Order: IRDAI directs Care Health Insurance to Cancel ESOPs  75,69,685 shares from Rashmi Saluja at Rs 45.32 per share within 30 days, and cancel unexercised stock options within 15 days, and pay a Rs 1 crore fine.

• IRDAI Act: IRDAI's July 23 order cites CHIL's stock options issuance to Saluja as a violation of the Insurance Regulatory and Development Authority Act, 1999, and related guidelines.

• Prior Approval: IRDAI mandates that CHIL must seek prior approval for board decisions on remuneration, payments, and benefits until further notice.

• IRDAI Stresses Compliance: IRDAI clarified that Saluja's role as executive chairperson of REL does not exempt CHIL from adhering to IRDAI regulations and guidelines.