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Insurance IRDAI penalizes HDFC Ergo and Liberty Videocon

IRDAI penalizes HDFC Ergo and Liberty Videocon

Team Cafemutual Jan 2, 2017

While HDFC Ergo was found to have distributed policies through unauthorized agents, Liberty Videocon had extended huge discounts to policyholders by inflating premium amount.

IRDAI has imposed a fine of Rs. 15 lakh each for violating various regulatory norms on HDFC Ergo General Insurance and Liberty Videocon General Insurance.

The insurance regulator has imposed a fine of Rs.15 lakh on HDFC Ergo General Insurance for violating various regulatory norms like distribution of policies through unauthorized agents and tying up with unlicensed TPAs.

In one such instance, IRDAI found that HDFC Bank had sold policies of HDFC Ergo General Insurance through unlicensed employees. In fact, the company is found to have paid additional commissions to a few corporate agents like the bank which was over and above the prescribed commission structure.

In another such violation, IRDAI has imposed a fine of Rs.15 lakh on Liberty Videocon General Insurance for selling policies through unauthorized agents.

Further, the insurance regulator had found that the company had extended huge discounts to their policyholders by inflating the premium amount.  

IRDAI has asked both the companies to discontinue these practices and pay the penalty within 15 days. 

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