IRDAI has imposed a fine of Rs.1 crore on ICICI Lombard General Insurance for violating file and use guidelines under health insurance regulations.
The insurance regulator has found that the company had issued group insurance policies to a corporate client having personal accident policy term of 2 and 3 years and personal protection cover for 5 years. However, the company had taken approval for issuing group insurance policies having tenure of 1 year.
In a circular IRDAI said, “Even after taking a certificate basis approval from Authority informing to be compliant with the regulation, the insurer continued selling products which were supposed to be withdrawn as per regulation. The insurer has violated the regulation of the Health Insurance Regulations 2013 on the maximum allowable policy term for group and individual health products.”
IRDAI has asked the company to deposit the penalty amount within 15 days.
