The Insurance Regulatory and Development Authority (IRDA) has asked insurance companies not to accept premium money beyond Rs 50,000 in cash and to strictly adhere to anti-money laundering (AML) guidelines.
The regulator has instructed insurance companies to accept premium of more than Rs 50,000 through banking channels such as cheque, credit card or demand draft.
IRDA has also requested the companies to examine more closely for possible angles of money laundering if premium amount is greater than Rs 50,000 in a calendar month.
It warned that it would be forced to take serious action against the insurers where the violations of Anti Money Laundering (AML) framework are permitted with their tacit approval.