Rs 17 lakh fine on Future General India by IRDAI

Chennai, Apr 13 (IANS): India's insurance sector regulator has levied a penalty of Rs 17 lakh on private non-life insurer Future Generali India Insurance Ltd for buddling add-on covers on its motor insurance policies without the policyholder's as well as its own consent.

The Insurance Regulatory and Development Authority of India (IRDAI) had also issued various directions and advisories to Future Generali India on several regulatory violations.

The insurance regulator had carried an on-site inspection of Future Generali India in January 2018.

The IRDAI had sample tested 17 motor insurance policies issued by Future Generali India and found that the company had offered add-on risk covers without express consent by the policyholders.

The sectoral regulator has fined Future Generali India a sum of Rs 16 lakh on this count and another Rs 100,000 for selling the risk covers with getting its prior consent (violation of product filing guidelines).

The insurer has been directed to remit the fine online within 45 days.

Penalty apart, the regulator has issued several advisories to the insurer on various issues including:

- prompt appointment of surveyors

- following its regulations in calculating the solvency margin

- deducting appropriate sum from the claim amount for loss of original keys in the case of a vehicle theft claim in a transparent manner

- framing a Board approved policy on what constitutes `non-standard claim' and the kind of claims that can be settled under that.



Top Stories

Leave a Comment

Title: Rs 17 lakh fine on Future General India by IRDAI

You have 2000 characters left.


Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will be held responsible.

Security Validation

Enter the characters in the image