IRDAI levies fine on ICICI Lombard, Tata AIG

The IRDAI has imposed fine of Rs 1 crore on ICICI Lombard General Insurance Co and Tata AIG General Insurance Co for violating various norms. ICICI Lombard has been pulled up by IRDAI in the context of not providing the discounts offered by hospitals to policyholders, which was given to the insurance companies in the range of 2-5%. IRDAI also observed that ICICI Lombard had been offering “overseas student insurance” for a risk period of 730 days while the regulator had filed with the insurer for a period of 365 days.
It has also been found by the regulator that the insurance company had issued other group and individual personal accident policies, which were not in compliance with earlier filed terms. Meanwhile, ICICI Lombard has also come under the regulator’s watch for closing claims without clearly rejecting the claim or accepting it and mentioning “non-receipt of documents” as the reason.
However, IRDAI levied fines on ICICI Lombard on the ground of collecting advance renewal premium without explicitly informing the policyholder. The regulator noted that the insurer “had presumed the consent of the policyholder without any documentary evidence of consent”.