A penalty of ₹1 crore recommended due to the repetitive nature of non-compliance by the private sector insurer by the officer.
(Photo: IRDAI)
Insurance Regulatory and Development Authority (Irdai) has imposed a total penalty of Rs 15 lakhs on Bharti AXA General Insurance Company in two different cases for violation of various provisions concerning motor insurance.
Irdai has imposed a penalty of Rs 10 lakh on the private sector insurance company for non-compliance with minimum obligations under regulations concerning third-party motor insurance business.
Allegedly during 2017-18, Bharti AXA General Insurance’ 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.
Advertisement
In percentage terms, the shortfall worked out to around 4.99 per cent of the motor-third party insurance business obligation.
A penalty of ₹1 crore recommended due to the repetitive nature of non-compliance by the private sector insurer by the officer. The Irdai, however, reduced the penalty to ₹10 lakh.
In the second case, the Irdai has imposed a fine of Rs 5 lakh on Bharti AXA for violation of the guidelines which prohibit payments, directly or indirectly, to the motor insurance service provider or any of its associate company.
Advertisement
