Irdai slaps Rs 51 lakh fine on four insurers for violation of norms | Business Standard News

Clipped from: https://www.business-standard.com/article/pf/irdai-slaps-rs-51-lakh-fine-on-four-insurers-for-violation-of-norms-121041800452_1.html

Regulator Irdai has imposed a penalty of Rs 51 lakh on four insurers, including SBI General Insurance Company, for violation of certain norms related to motor insurance.

Regulator Irdai has imposed a penalty of Rs 51 lakh on four insurers, including SBI General Insurance Company, for violation of certain norms related to motor insurance.

A penalty of Rs 25 lakh has been imposed on SBI General Insurance Company for not fulfilling regulatory obligations under the Motor Third Party (MTP) business.

The Insurance Regulatory and Development Authority of India (Irdai) has also imposed a penalty of Rs 13 lakh on Liberty General Insurance Limited, Rs 10 lakh penalty on Bajaj Allianz General Insurance Company, and Rs 3 lakh on Royal Sundaram General Insurance Company.

In the order on SBI General Insurance Company, Irdai said the charge was that the the insurer did not comply with the MTP Obligation for the financial year 2017-18 calculated as per Regulation 3 of the Irdai (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015.

“For the financial year 2017-18, the insurer did not fulfill the obligation and had a shortfall of Rs.104.6 crores (24.08 per cent), which amounts to non-compliance of Regulation 3 of Irdai (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015,” the order said.

It further said the insurer had not fulfilled the MTP obligations during the immediate previous financial year 2016-17 with a significant shortfall of Rs 146 crores (38.59 per cent).

“Taking into consideration the repetitive nature of violation, magnitude of violation, and the submissions of the insurer that they are committed and are entering into various tie-ups to fulfill the MTP obligation, the Authority…hereby imposes a penalty of Rs 25 lakh,” the order said.

As per the order on Liberty General Insurance Limited, the penalty of Rs 13 has been imposed for violation of certain provisions of Guidelines on Motor Insurance Service Provider (MISP Guidelines). The insurer was also directed to ensure in future that any engagement with automotive dealers is strictly in compliance with MISP Guidelines.

The penalty of Rs 10 lakh has been imposed on Bajaj Allianz General Insurance Company for violation of certain provisions of Insurance Act, 1938.

In case of Royal Sundaram General Insurance, Irdai order said the insurer was in violation of a provision MISP Guidelines while imposing the penalty of Rs 3 lakh.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s