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  • Insurance Policybazaar.com fined for misleading policyholders

    Policybazaar.com fined for misleading policyholders

    IRDAI has penalised the insurance web aggregator for violating advertisement rules.
    Team Cafemutual May 22, 2021

    IRDAI has imposed a fine of Rs.24 lakh on online insurance intermediary Policybazaar.com for violating advertisement norms.

    The web aggregator allegedly sent misleading information to about 10 lakh customers through SMS in which the company recommended that people should buy term insurance policies before April 10 due to possibility of a hike in insurance premium. The messages reads like this - “Life insurance prices are set to increase from 10th April, save up to Rs.1.65 lakhs by buying Term Plan today!”

    The SMS had the potential to cause unnecessary panic among customers and force them to buy policies on news of an increase in future premium payments, said IRDAI.

    Moreover, Policybazaar did not mention its full name in SMS. The messages were sent under the name POLBAZ, found IRDAI.

    As per the regulation, every advertisement shall state the full name of insurer/intermediary/agent. “Policybazaar being a regulated entity ought to have known that the regulations must be complied in letter and spirit,” said the IRDAI order.

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    8 Comments
    RAMESH JAGTAP · 3 years ago `
    policy always mislead customer
    Kaushik · 3 years ago `
    Their car insurance policies are also very misleading... Be careful...
    Ramesh Mokashi · 3 years ago
    Correct, their is lack of transparency. Few terms and conditions are not explained to customers
    Reply
    Anil kumar dixit · 3 years ago `
    Rs. 24 lakh so small amount , I think fine Rs24 crore minimum, because online plateform maximum mis selling
    Hemanth · 3 years ago `
    Policybazar missleading customer service very bad
    Ravi Kumar Sawhney · 3 years ago `
    Policybazar is not provide service after sale policy to customer
    Sk Mobaidul islam · 3 years ago `
    Kumarpur purba Medinipur West Bengal
    GOWRISHANKAR KASI NAGARAJAN · 3 years ago `
    The CEO of Policy Bazaar.Com is a Chartered Accountant. He has brought disgrace to this noble profession. The ICAI should take stringent action against this guy and see that he is disqualified and his licence to practice is suspended. Besides, SEBI (Society for Executives of Bureaucratic India) should have imposed a penalty of Rs. 24 lacs which is a paltry sum. Instead thay should have increased to Rs. 10 crore so that the next time this guy thinks of fooling the people, his butt would have been pinched by his memory.
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