₹51 lakh penalty imposed by IRDAI on four insurers.
Insurance regulator IRDAI has imposed a penalty of ₹51 lakh on four insurers, including SBI General Insurance Company, for desecration of certain norms related to motor insurance.
A penalty of ₹25 lakh has been imposed on SBI General Insurance Company for not fulfilling regulatory duties under the Motor Third Party (MTP) business. It also imposed a penalty of ₹13 lakh on Liberty General Insurance Limited, ₹10 lakh penalty on Bajaj Allianz General Insurance Company, and ₹3 lakh on Royal Sundaram General Insurance Company.
IRDAI, in the order on SBI General Insurance Company said the charge was that the insurer did not comply with the MTP Obligation for the financial year 2017-18 calculated as per Regulation 3 of the IRDAI (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015.
"For the financial year 2017-18, the insurer did not fulfill the obligation and had a shortfall of ₹104.6 crores (24.08%), which amounts to non-compliance of Regulation 3 of Irdai (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015," the order said. It further said that the insurer had not fulfilled the MTP obligations during the immediate previous financial year 2016-17 with a significant shortfall of ₹146 crores (38.59%).
As per the order on Liberty General Insurance Limited, the penalty of ₹13 lakh has been imposed for violation of certain provisions of Guidelines on Motor Insurance Service Provider (MISP Guidelines). The insurer was also directed to ensure in future that any engagement with automotive dealers is strictly in compliance with MISP Guidelines.
Further, the penalty of ₹10 lakh has been imposed on Bajaj Allianz General Insurance Company for violation of certain provisions of Insurance Act, 1938.
In case of Royal Sundaram General Insurance, IRDAI order said that the insurer was in violation of a provision MISP Guidelines while imposing the penalty of ₹3 lakh.