Insurance regulator IRDA today imposed a penalty of Rs 60 lakh on state-owned United India Insurance Company Ltd for violation of various regulatory provisions.
"In conclusion...The penalty of Rs 60 lakh shall be remitted to Insurance Regulatory and Development Authority of India within a period of 15 days from the date of receipt of this order," the regulator said in the order.
Against 58 charges of violation, IRDA slapped fine in some cases while it absolved the insurers of the charges.
In one of the violations, the regulator found that three claim cases were not registered and no provision was made for them.
"In view of the violations observed, the Authority in exercise of the powers vested in...The Act imposes a penalty of Rs 5 lakh," it said.
In another charge relating to delay in premium collection even after enforcement of the policies, the regulator imposed penalty of Rs 5 lakh.
"The insurer had issued Indian Bank Arogya Raksha group policy to account holders of Indian Bank. The bank was debiting premium amount to its account holders who purchased the health policy and remitted the same to insurer," it said.
It was observed that there was huge delay in receipt of premium by the insurer, it said.
In few cases it is observed that premium was received by insurer after 25 days of risk commencement.
"Although insurer has a deposit of Rs 50,000, the amount of premium not remitted was more than the deposit amount, which implies non compliance to Sec.64VB of Insurance Act, 1938," it said.
In view of the violation of the provisions of the Act, IRDA imposed a penalty of Rs 5 lakh.
In another instance there was violation of File and Use guidelines of the regulator for which it imposed fine of Rs 5 lakh.
