Cholamandalam MS General Insurance Company (GIC) has recently been fined Rs 1 crore for several violations related to payment of commissions to brokers on sale of health insurance. The insurance regulator IRDAI had said that the violations had occurred in 2015-16 in contravention to health insurance regulations, which state that commissions are not payable to intermediaries for polices that get ported.
“The detail of commission recovery has not been provided by insurer. The violation was brought to the insurer’s notice during the on-site inspection, in the exit report shared with the insurer. The violation of insurer has been continued for 586 days from the date of bringing to its notice and for 2,001 days from the date of notifying the regulations, February 16, 2013 to November 1, 2018,” IRDAI said. IRDAI further stated the 2013 regulations “clearly specify that no commission shall be payable to any intermediary on the acceptance of a ported policy”.
