India’s insurance regulator, IRDAI, has imposed a ₹50 crore penalty on Policybazaar, a leading digital insurance aggregator under PB Fintech, citing multiple regulatory violations. The fine follows a detailed investigation into Policybazaar’s operational practices, including issues related to policy tagging, premium remittances, and directorship compliance under the Insurance Act, 1938.

The case originated in June 2020 with an IRDAI inspection, followed by a show-cause notice in October 2024. After reviewing written responses and conducting hearings, the authority finalized the penalty and issued additional advisories aimed at strengthening the platform’s governance framework. Policybazaar did not disclose specific details of these directives.

These violations were linked to the company’s previous legal entity, Policybazaar Web Aggregator Pvt Ltd, which has since transitioned into Policybazaar Insurance Brokers Pvt Ltd, reflecting a shift in its regulatory classification and business model.

The penalty announcement triggered a 2.3% drop in PB Fintech’s stock price, signaling investor unease. The company, however, assured that business operations remain unaffected and reiterated its commitment to regulatory compliance and transparency.

This development serves as a wake-up call for India’s growing digital insurance sector. It underscores the regulator’s intent to enforce strict oversight, ensuring consumer protection and industry accountability.