IRDAI has imposed a fine of Rs.10 lakh on ICICI Lombard for violating norms like issuing policies without collecting premium and incorporating changes in a few policies without taking prior approval.
IRDAI found that the company had issued health insurance policies to the beneficiaries of a social security scheme without even collecting the premium amount. The company had issued such policies to 11,445 beneficiaries of Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY) in 2009-10. RGSSBY is a health insurance scheme for handicraft artisans.
Further, IRDAI found that ICICI Lombard had incorporated changes in few of its accidental insurance policies without intimating the insurance regulator. The company had modified policy wordings and introduced a few exclusions like death due to injury during war, terrorism and adventurous activities which made these accidental policies a different policy from what was approved.
IRDAI has asked ICICI Lombard to pay the penalty money by October 13.
In another case, the insurance regulator has also imposed Rs.5 lakh fine each on Reliance General and Reliance Life for not disclosing their business relationship with its subsidiary company Reliance Capital. Both these insurers have been asked to pay the penalty money by November 2.