IRDAI has found three general insurance companies - Bajaj Allianz, SBI, Go Digit guilty of violating regulatory norms.
While IRDAI imposed penalties on Bajaj Allianz General Insurance and Go Digit General Insurance, it has issued warning against SBI General Insurance.
IRDAI has imposed a penalty of Rs.7 lakh on Bajaj Allianz General Insurance Company for violating guidelines of Motor Insurance Service Provider (MISP). IRDAI found that the insurer had paid additional payment to its MISP (automobile dealer) which were over and above commission. These payments were made in the form of fees, charges, infrastructure, advertising expenses, documentation charges, legal fees and so on to the directors of the intermediaries.
Similarly, Go Digit was fined Rs.1 lakh for violating file and use guidelines. IRDAI found that the insurer had introduced several add-ons without taking prior permission from the insurance regulator.
On the other hand, IRDAI did not impose penalty on SBI General. The insurance regulator found that the general insurance did not meet its minimum business criteria under motor third party insurance regulations in FY 2016-17. As against the minimum business requirement of Rs. 379 crore under motor third party insurance, the insurer had underwritten premium of Rs.233 crore, a shortfall of Rs.146 crore or 39%.
