The Securities Appellate Tribunal (SAT) has upheld the order of insurance regulator IRDAI directing Go Digit General Insurance to discontinue the product “Digit Group Total Protect Policy” as the product falls under the purview of life insurance which could not be offered by a general insurance company.
“From all the provisions, it is clear that any person who wishes to carry on insurance business can do so provided that the person gets a registration of a particular class of insurance business under Section 3 of the Insurance Act read with Clause 4 of the Regulations of 2000,” the order said.
“The contention of the appellant (Go Digit) is that their product was already providing cover for accidental death and, therefore, addition of death under Section 29(e) of the modified product did not partake the nature of a life insurance under Section 2(11) of the Act and that only an additional/ancillary benefit was provided to the insured in case of death,” it said.
