 "IRDAI upholds order asking SBI Life to refund excess premium")
The insurance regulator said it did not find any mitigating factor to consider in the personal hearing or in the representation. SBI Life has to submit a compliance report within 45 days.
In March 2014, Irdai had asked SBI Life to refund the amount to the policyholders of Dhanaraksha Plus Limited Premium Paying Term (LPPT), a group insurance policy. It had said the life insurer had adopted business practices in violation of prescribed regulatory norms where the LPPT was sold as a single-premium policy instead of the approved "file-and-use" features.
It also said the insurer paid excess commission to "corporate agents", above the eligible two per cent.
This product was offered as a single premium product by receiving the second year's premium in advance, along with first-year premium, by offering a discount of four per cent on the advance premium.
The regulator said large scale of collection of two regular premiums upfront, along with the first-year premium, is detrimental to the interests of the policy holders. It also said the manner in which the policies were offered was also detrimental to policy holders' interests.