IRDAI fines ICICI Lombard, Tata AIG Rs 1cr

BENGALURU: He has fined two million general rupees of 1 rupee: General Insurance Co and Tata AIG General Insurance Co for the violation of several rules.

In the case of ICICI Lombard, the regulator stopped the charge for not transferring the benefit of the discounts offered by the hospitals. The discounts offered by hospitals to insurance companies were in the range of 2-5%.

The regulator also discovered that ICICI Lombard had been offering insurance for students abroad for a risk period of 730 days when it had submitted an application to the insurer only for a period of 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 (insurers must submit all insurance products to the regulator 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In the cases of Tata AIG, the general insurer was withdrawn to collect the early renewal premium without explicitly informing the policyholder. IRDAI notes that the insurer had presumed the consent of the policyholder without any documentary evidence of consent.

It is noted that the general insurer collected the renewal premium three years in advance with respect to one of the sample policies on August 12, 2016, IRDAI said. The regulator has asked the insurance company to reimburse the insured along with the interest charged by the corporate agent.