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IRDAI imposed heavy fine on this company of SBI, know what is the matter?

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IRDAI has imposed a fine of Rs 30 lakh on SBI General Insurance for non-compliance of third party motor insurance rules.

SB I

The Insurance Regulatory and Development Authority (IRDAI) has imposed a penalty of Rs 30 lakh on SBI General Insurance for not complying with third party motor insurance rules. The insurance regulator said in its order that SBI General Insurance Company did not follow the third-party motor (MTP) insurance rules specified in the relevant IRDAI rules of 2018-19.

IRDAI said that the company was accused of not following the MTP rules for the financial year 2018-19. In 2018-19, the SBI General Insurance Company under obligation incurred only underwriting (insurance) of Rs 316.36 crore instead of minimum MTP of Rs 638.34 crore. In this way, the company did MTP of Rs 321.98 crore less than the liability or equal to the amount of 50.44 percent.

MTP rules not followed

The order stated that the company said that it did not disregard any MTP policy at any place of its own business and had no ulterior motives. It was also said that the insurance company had not followed the MTP rules even in the preceding two more financial years.

Non-life insurance companies rise in premium

The gross direct premium of non-life insurance companies registered a growth of over 22 per cent in April this year and stood at Rs 17,309.54 crore. According to regulatory data, all the 33 insurance companies in the non-life insurance category had registered a gross direct premium of Rs 14,174.10 crore in the same month last year.

According to IRDAI figures, 25 of these companies registered a growth of around 20 percent in April 2021 with a total gross premium of Rs 15,946.46 crore as against Rs 13,328.16 crore in the same period last year.

The five standalone health insurance providers recorded an increase of over 43 per cent in gross premium to Rs 1,259.23 crore as compared to Rs 809.20 crore in the same period last year.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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