IRDAI has fined three general insurance companies for violating motor insurance policy norms.
The regulator has imposed fine of Rs.25 lakh on SBI General Insurance, Rs.17 lakh on Future Generali India Insurance and Rs.3 lakh on Royal Sundaram Insurance.
SBI General did not comply with the motor third party (MTP) obligation for the FY 2017-18. During the FY 2017-18, the insurer has underwritten Rs.329.73 crore as against the minimum obligatory MTP insurance business of Rs.434.33 crore resulting in a shortfall of Rs.104.60 crore.
Future Generali India Insurance has been fined for selling add-on covers with motor insurance policies without taking the consent of the prospect. The regulator has levied a penalty of Rs.1 lakh for violating the product filing guidelines and Rs.16 lakh for offering unapproved add-on covers.
The regular has penalised Royal Sundaram for not complying with the guidelines of motor insurance service provider (MISP). The insurer made payments to motor dealers without any MISP distribution agreement in place.