As a Compliance Officer, how would you ensure that your Company is not penalised for 'penalty payments' highlighting the powers of IRDAI under section 44, 102, 105B or 105C in particular.

As a compliance officer every Company Secretary of an insurance company first and foremost ensure due diligence and compliance with the various provisions under the IRDAI guidelines and regulations. The IRDAI is empowered under various section to impose penalties on insurance companies for default in company with the provisions under the Act. The power of IRDAI under section 44, 102, 105B and 105C are discussed below: Under section 44A of the Insurance Act, 1938, for the purposes of ensuring compliance with the provisions of sections 40A, 40B, 40C, 42B and 42C the Authority may by notice,- (a) require from an insurer, principal agent, chief agent, or special agent such information certified, if so required by an auditor or actuary, as he may consider necessary; (b) require an insurer, principal agent, chief agent, or special agent to submit for his examination as the principal place of business of the insurer in India, any book of account, register or other document, or to supply any statement which may be specified in the notice; (c) examine any officer of an insurer or a principal agent, chief agent or special agent on oath, in relation to any such information, book, register, document or statement and administer the oath accordingly; and an insurer, principal agent, chief agent or special agent shall comply with any such requirement within such time as may be specified in the notice. Under Section 102: It empowers IRDAI to impose a penalty not exceeding five lakh rupees for each such failure and punishable with fine for an insurance company: (a) Failure to furnish any document, statement, account, return or report to IRDAI. (b) Failure to comply with the directions (Section 34 empowers IRDAI to issue directions if it is satisfied to do so in the interests of public or for prevention of affairs being conducted detrimental to policy holders or to secure proper management of any insurer). (c) Failure to maintain the required solvency margin. (d) Failure to comply with the directions on the insurance treaties. Under Section 105B: It empowers IRDAI, if an insurer fails to comply with the provisions of section 32B, he shall be liable to a penalty not exceeding five lakh rupees for each such failure and shall be punishable with imprisonment which may extend to three years or with fine for each such failure. Under Section 105C: It empowers IRDAI, if an insurer fails to comply with the provisions of section 32C, he shall be liable to a penalty not exceeding twenty-five lakh rupees for each such failure and in the case of subsequent and continuing failure, the registration granted to such insurer under section 3 shall be cancelled by the Authority.