BENGALURU: The Insurance Regulatory and
Development Authority of India
(
Irdai
) has fined two general insurance companies —
ICICI Lombard General Insurance Co and Tata AIG General Insurance Co — Rs 1 crore each for violation of various norms.
In the case of ICICI Lombard, the
regulator
pulled up the insurer for not passing on the benefit of discounts offered by hospitals to policyholders. These discounts were offered to insurance companies and were in the range of 2-5%.
Irdai further found that ICICI
Lombard
had been offering “overseas student insurance” for a risk period of 730 days when it had filed with the insurer for a period of only 365 days. The regulator also found that there were other group and individual personal accident policies, issued by the insurer, that were not “compliant” with earlier filed terms (insurers are required to file every insurance product with Irdai and get approval for the same).
The regulator also pulled up ICICI Lombard for closing claims without clearly rejecting the claim or accepting it. In many instances, ICICI Lombard had closed claims cases by giving the reason as “non-receipt of documents”.
In the case of Tata AIG, Irdai pulled up the general insurer for collecting advance renewal premium without explicitly informing the policyholder of the same. Irdai notes that the insurer “had presumed the consent of the policyholder without any documentary evidence of consent”. The regulator has asked the insurance company to refund policyholders along with the interest charged by the corporate agent.
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