Irdai fines Tata AIG, ICICI Lom Rs 1 crore each

BENGALURU: The Insurance Regulator and () have fined two general insurance companies: ICICI General Insurance Co and Tata AIG General Insurance Co - Rs 1 crore for failure to comply with various regulations.

In the case of ICICI Lombard, it withdrew the insurer for not transferring the benefit of the discounts offered by the hospitals to the insured. These discounts were offered to insurance companies and were in the range of 2-5%.

Irdai also discovered that he had been offering insurance for students abroad for a risk period of 730 days when he had appeared before the insurer for a period of only 365 days. The regulator also discovered that there were other group and individual personal accident policies, issued by the insurer, that did not comply with the terms presented above (the insurers are required to present all insurance products with Irdai and obtain their approval) .

The regulator also detained ICICI Lombard for closing claims without clearly rejecting the claim or accepting it. In many cases, ICICI Lombard had closed the claims cases by giving the reason for not receiving documents.

In the case of Tata AIG, Irdai arrested the general insurer to collect the early renewal premium without explicitly informing the policyholder. Irdai notes that the insurer presumed the consent of the policyholder without any documentary evidence of consent. The regulator has asked the insurance company to reimburse the insured along with the interest charged by the corporate agent.