IRDAI has imposed a fine of Rs.60 lakh on United India Insurance for violation of various norms like soliciting business through unlicensed agents, delaying claim settlement process, paying additional commission to its corporate agents in the form of advertisement and marketing expenses. The insurance regulator has examined 58 such violations of the company.
The insurance regulator has found that the company has solicited insurance policies through distributors who were not empanelled with the company. In a few instances, the company was found to have solicited business through unauthorized agents too.
IRDAI found that the company had delayed claim settlement process due to its negligence. The company was found to have failed to appoint a surveyor within the stipulated time frame i.e. 72 hours of the claim. Also, some of their surveyors took over eight months to submit the report, resulting in huge delays in claim settlement process.
The insurance regulator found that the company has paid higher commissions than what is permitted to its corporate agents in the form of advertisement and publicity costs.
Meanwhile, IRDAI has imposed a fine of Rs.5 lakh on National Insurance Company for delay in submission of report.
The insurance regulator has asked both the companies to pay the fine within 15 days.