IRDAI Slaps Rs 6 Lakh Penalty On Shriram Life Insurance
Posted on:20 Oct 2016 11:25:49
20 October 2016 Current Affairs GK: Regulator Irdai has imposed a penalty of Rs 6 lakh on Shriram Life Insurance for "casual" approach towards certain norms, among other violations.
The company was charged that under a product (Shriram Credit Shield), in many instances, the insurer had covered the loan term of less than three years and provided flat cover of Rs 5,000 for the balance period (till completion of three years).
The insurer should note that whenever they realise the demand of a specific feature that is not available in the approved File and Use, they should approach Irdai for revision of the product in order to include the required feature.
The new feature can only be marketed post approval of the revision. So, the life insurer resorting to such practice again indicates their casual approach towards regulatory prescriptions with regard to File and Use.
Another charge was that group claims paid date for the financial years 2011-12 and 2012-13 revealed that death claims were settled in favour of Group Master Policyholder. Further, the life insurer had not obtained a confirmation of receipt of claim payment from the beneficiaries. In this case, a penalty of Rs 1 lakh has been levied.
The regulator said "the penalty of Rs 6 lakh shall be debited to the shareholders' account of the life insurer" and the amount should be remitted to the Irdai within a period of 15 days.
FreshersLive - No.1 Job site in India. Fresherslive Current Affairs 2017 section offers informative quiz questions with answers regarding latest current affairs today for all sorts of competitive exams like UPSC, TNPSC , IFS, IAS, IPS, railway exams (RRB) and banking exams like IPBS PO, IPBS clerk, Federal Bank PO, ICICI, SBI, RBI legal officer & Grade officer posts and much more. Register with us to get latest Current Affairs Updates. Also get latest Current Affairs news and quiz Updates for free alerts daily through E-mail