PB Fintech Shares Slip After Policybazaar Receives ₹5 Crore Fine For Insurance Act Violations

IRDAI observed that several insurance products were promoted as “top” or “best” without transparent criteria or proper disclaimers.

Shares of the parent company, PB Fintech, fell as much as 2.5% after Indian policy aggregator Policybazaar was slapped with a ₹5 crore fine for multiple Insurance Act violations.

According to an Insurance Regulatory and Development Authority of India (IRDAI) order dated August 4, the violations include 11 distinct charges, such as governance lapses and improper product promotion practices. These violations took place while Policybazaar was operating as an Insurance Web Aggregator (IWA), prior to receiving its composite broker license in February 2024.

What Did The Insurance Regulator Find?

IRDAI had conducted an on-site inspection of Policybazaar from June 1 to June 5, 2020, and observed that several insurance products were promoted as “top” or “best” without transparent criteria or proper disclaimers, raising concerns over potential bias and lack of substantiation.

The regulator flagged the display of the top five ULIP products on the website, including plans from Bajaj Allianz, Edelweiss Tokyo, HDFC, SBI Life, and ICICI, as lacking clarity on the basis for their ranking.

Following the inspection, Policybazaar received a Show Cause Notice on October 7, 2024, offering an opportunity for a personal hearing and submission of additional information.

Regulatory Impact On Policybazaar

After reviewing the submissions, IRDAI issued an order on August 4, 2025, imposing a total penalty of ₹5 crore for violations related to directorships of key managerial personnel and the principal officer, product display, outsourcing agreements, policy tagging, and premium remittance.

Additionally, IRDAI issued further directions and advisories to the company, instructing compliance within a specified timeframe.

Retail sentiment on Stocktwits remained ‘bearish’. It was ‘neutral’ a month ago.

Year-to-date, the stock has shed nearly 17%.

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