- Irdai had conducted on-site inspection of the insurance company during 15-25 January 2018
The Insurance Regulatory and Development Authority of India (Irdai) has fined Future Generali India Insurance Company ₹17 lakh for selling unapproved add-on covers with its motor insurance policies without approval of the authority.
In a sample of 17 motor insurance policies, Irdai found that an add-on cover referred as “Plan 1-C" was offered by insurer without filing and taking approval from the regulator.
Irdai had conducted on-site inspection of the insurance company during 15-25 January 2018.
“Out of the 17 sample cases, 15 cases were on different dates and two proposals were on a single day. Thus the violation of offering the add-on cover without obtaining consent of policyholder happened on 16 different days, which is in violation of Regulation 3(2) of IRDA (Protection of Policyholders" Interests) Regulations, 2002," Irdai said on a note.
For the violation of product filing guideline by offering the add-on cover prior to the approval, the regulator has levied a penalty of ₹1 lakh, and for offering the add-on cover without obtaining consent of policyholder, Irdai has levied a penalty of ₹16 lakh.
The penalty shall be remitted by the insurer through NEFT / RTGS (bank account details will be communicated separately) by debiting shareholders‟ account within a period of 45 days from the date of receipt of this order.
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