IRDA has fined four major insurance companies of the country for violating the rules related to motor insurance. These companies also include SBI General Insurance Company.
Due to violation of rules, Insurance Regulatory and Development Authority of India (Insurance Regulatory and Development Authority of India) has fined four of the country’s well-known insurance companies. Under this, they will have to pay 51 lakh rupees. These companies are accused of ignoring certain rules related to motor insurance.
A fine of 25 lakh has been imposed on SBI General Insurance on behalf of IRDA for violation of rules. The company is accused of not meeting regulatory commitments for the motor third party (MTP) business. Apart from this, IRDA has imposed a fine of Rs 13 lakh on Liberty General Insurance Limited, Rs 10 lakh on Bajaj Allianz General Insurance Company and Rs 3 lakh on Royal Sundaram General Insurance Company. They are all accused of violating the rules.
IRDA said in its order that SBI General Insurance Company did not fulfill the MTP commitments in FY 2017-18. At the same time, Liberty General Insurance Company did not follow certain provisions of the Motor Insurance Service Provider (MISP) guidelines. Due to this, such companies have been fined.
Bajaj Allianz General Insurance is also accused of violation of insurance law. The company has not complied with some of the provisions of 1938. Therefore, a fine of Rs 10 lakh has been imposed on him. Royal Sundaram General Insurance also disregarded the MISP guidelines.
Steps were also taken to stop fraud
Indian insurance sector regulator IRDA recently took a big decision to protect the insured from fraud. IRDA has directed all insurance companies to register their message format with the telecom service providers. Insurance companies will have a unique template, through which customers will be able to identify the real message.