Insurance sector regulator Irda has imposed a Rs 40-lakh penalty on Aegon Religare Life Insurance Company for violating various guidelines.
Insurance Regulatory and Development Authority (Irda) said it found the private sector insurer in violation of guidelines related with protection of policyholders' interest, obligations to rural and social sectors, corporate governance, data sharing and outsourcing guidelines.
"In conclusion, as directed under the charges, the penalty of Rs 40 lakh shall be remitted by the insurer...Within a period of 15 days from the date of receipt of this order," Irda said in an order to Aegon Religare Life Insurance.
The company did not furnish copies of the proposal forms for the polices to the policyholders, Irda said. To this, the regulator stated that,"...Mere provision of the acknowledgement of receipt or policy schedule to the policyholder does not ensure compliance."
The Authority has taken a serious view of the violation and the insurer is directed to modify the laid down process, it added.
On corporate governance guidelines, Irda said there were significant delays in processing the surrender requests or settlement and advised the company to ensure compliance at all times with claims processing process.
Irda also warned the company for not having put in place suitable systems as consent of assignee were not taken to enable policy alterations such as change of name and address and top up premium.
It also cautioned and directed the insurer to streamline their claim settlement process in line with extant regulations.
