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Irdai has imposed Rs 5 lakh fine on National Insurance Company for violation of certain norms

Irdai, the Insurance sector regulator has imposed a penalty of Rs 5 lakh on National Insurance Company Limited for the violation of certain norms.

In an order, The Insurance Regulatory and Development Authority of India (Irdai) said with respect to policy wordings for ‘BOI National Swasthya Bima Policy’ provision for ‘Claim falling in two policy years’ was not specified in the policy.

“In revised policy wordings also, the insurer has not provided for the same”,said the order .

“It was confirmed by the insurer that now, they have complied with the said product as per provisions of regulations.”

“This shows a casual approach on the part of the Insurer and a non professional manner of dealing with RTI matters,” Irdai said.

“The reminder was sent to the insurer…The response of the insurer was received by the Authority only on 13-06-2014. …which is not a professional manner of dealing with the Regulatory compliance issues,”Irdai said.

“For delay in submission of required information, the Authority in exercise of powers vested under Insurance Act, 1938, imposes a penalty of Rs 5 lakh,” the order said.

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