Online BusinessIrda cracks whip on insurers
10 companies to be penalised, Reliance General attracts biggest penalty.
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The Insurance Regulatory and Development Authority (Irda) has penalised 10 insurance companies for violating various norms and regulations during 2008-09.
The company which attracted the biggest penalty was Anil Dhirubhai Ambani Group-led Reliance General, which has been slapped with a penalty of Rs 20 lakh for “violating Irda’s regulations and guidelines”, according to a statement in the insurance regulator’s annual report. Two public sector insurers — New India and National India and two private insurers IFFCO Tokio and HDFC Ergo have been charged Rs 5 lakh each for the similar violations.
Similarly, New India, National India and United India were charged a fine of Rs 2 lakh each for violating the guidelines on reinsurance of risks pertaining to public sector petroleum refiner Indian Oil Corporation limited.
Private sector general insurer ICICI Lombard has been charged with Rs 5 lakh for violating the file and use guidelines in case of Pravasi Bhartiya Bima Yojna which is their insurance plan for non-resident Indian customers. Almost all the insurance companies pulled up for violations were general insurers. The only life insurer to be penalised was Max New York Life which was fined Rs 5 lakh for violating directions issued with respect to unit linked insurance plans.