Wednesday, February 1News That Matters

IRDAI imposes Rs 15 lakh penalty on Bharti AXA General Insurance Company

Regulator Irdai has imposed a total penalty of Rs 15 lakhs on Bharti AXA General Insurance Company in two different cases for violation of various provisions concerning motor insurance. In this first case, the Insurance Regulatory Development Authority of India (Irdai) slapped a penalty of Rs 10 lakh on the private sector insurance company for non-compliance with minimum obligations under regulations concerning third-party motor insurance business.

It was alleged that during 2017-18, the private sector insurer has underwritten Rs 380 crore as against the minimum obligatory motor third-party insurance business of Rs 399.94 crore, resulting in a shortfall of Rs 19.94 crore. In percentage terms, the shortfall worked out to around 4.99 per cent of the motor-third party insurance business obligation.

The adjudicative officer, looking after the case, recommended a penalty of Rs 1 crore due to the repetitive nature of non-compliance by the private sector insurer. The Irdai, however, reduced the penalty to Rs 10 lakh. In the second case, the Irdai has imposed a fine of Rs 5 lakh on Bharti AXA for violation of the guidelines which prohibit payments, directly or indirectly, to the motor insurance service provider or any of its associate company.

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