Irdai imposes Rs 5 lakh fine on National Insurance Company
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Irdai imposes Rs 5 lakh fine on National Insurance Company

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

 PTI   
  • New Delhi,  April 30, 2015  
  • |  
  • UPDATED   16:02 IST
Irdai imposes Rs 5 lakh fine on National Insurance Company
Picture for representational purpose only. Source: Reuters

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

The Insurance Regulatory and Development Authority of India (Irdai) in an order 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", the order said.

It said the insurer accepted that the product was not compliant with the concerned provisions of IRDA (Health Insurance) Regulations, 2013.

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

It said the insurer gave incorrect information to an insured person in their reply to RTI with regard BOI National Swasthya Bima Policy.

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

Further, it said there was an inordinate delay by insurer with respect to information sought in 2013 on a few products.

"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.