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.