IRDA in its order dated 24th May 2012 has fined ICICI Prudential Life Insurance Co Ltd and directed it to pay Rs.1.18 crores within 15 days. This is the maximum fine imposed by IRDA after opening up of the insurance sector.
There has been a spurt in violations by the insurance companies offlate and every month IRDA is imposing penalties on Insurers in India both life and general insurance. This proves that everything is not going well in the insurance companies. IRDA has fined companies for matters which has come to their notice. What about the violations which is continuing and which has not come to the knowledge of IRDA?
It is justified just to levy fines and ask them to operate as usual. Are we bracing for a scam like SATYAM in our insurance industry.
I believe some insurance companies would continue to violate and if caught any day they would be happy to pay a fine and get away. They will take it as a business expense.
Like the violations cited in ICICI prudential case or Sriram General Insurance which was fined recently some strict measures should be taken by IRDA. Many insurance companies are doing business by hook or crook which should be properly investigated.
May be we can unearth many more frauds in the insurance sector.
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