The Insurance Regulatory and Development Authority (IRDA) Monday rejected the appeal of SBI Life Insurance Company Ltd and ordered it to pay Rs.84.31 crore to its group insurance members/beneficiaries.
In an order issued by him, IRDA chairman T.S.Vijayan asked the company to distribute wrongful payments of Rs.84.31 crore to the members/beneficiaries of respective group insurance policies.
In October 2012, the IRDA had ordered SBI Life to distribute the wrongful payments made to some of its Master Policyholders.
In June 2008, IRDA during an onsite inspection at SBI Life found that the company had paid Rs.204.71 crore to 14 Master Policyholders in contravention of its regulations.
In 2011, the regulator had levied on SBI Life a fine of Rs.70 lakh reserving its rights to take further action on the matter. And in 2012 the regulator ordered the life insurer to distribute Rs.84.31 crore to the members/beneficiaries of the respective group insurance policies.
