Insurance Regulatory Development Authority of India (IRDAI) has imposed a total fine of Rs 15 lakhs on Bharti AXA General Insurance Company.
The fine was imposed in two different cases for violation of various provisions concerning motor insurance.
First Instance
IRDAI imposed penalty of Rs 10 lakh for non-compliance with minimum obligations under regulations concerning third-party motor insurance business.
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.
Shortfall Percentage
The shortfall worked out to be around 4.99 per cent of the motor-third party insurance business obligation.
Second Instance
In the second case, IRDAI has imposed a fine of Rs 5 lakh for violation of the guidelines which prohibit payments, directly or indirectly, to the motor insurance service provider or any of its associate company.
Reduce Penalty
The adjudicative officer, recommended a penalty of Rs 1 crore due to the repetitive nature of non-compliance. But however, IRDAI managed to reduced the penalty to Rs 10 lakh.
Press the Bell Icon for notifications of all updates
