IRDAI imposes Rs 30 lakh penalty on SBI Insurance for repeatedly violating regulations
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Cutting down the penalty recommended by its Adjudicative Officer by Rs 70 lakh, Insurance Regulatory and Development Authority of India (IRDAI) has penalised SBI General Insurance Company Ltd Rs 30 lakh for repeatedly violating Insurance Act and the regulations.
The charge against SBI General Insurance Company was that it had repeatedly failed to comply with Section 32D of the Insurance Act and the IRDAI (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015 that mandates underwriting of minimum motor third party insurance business.
The SBI General Insurance violated Section 32D during 2018-19, 2016-17 and 2017-18.
SBI General Insurance fined Rs 30L by IRDAI
By IANS |
Published on
Tue, May 11 2021 9:57 IST |
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Chennai, May 11 : Cutting down the penalty recommended by its Adjudicative Officer by Rs 70 lakh, Insurance Regulatory and Development Authority of India (IRDAI) has penalised SBI General Insurance Company Ltd Rs 30 lakh for repeatedly violating Insurance Act and the regulations.
The charge against SBI General Insurance Company was that it had repeatedly failed to comply with Section 32D of the Insurance Act and the IRDAI (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015 that mandates underwriting of minimum motor third party insurance business.
SBI General Insurance s Penalty Reduced to Rs30 lakh by IRDAI
IANS
1
Cutting down the penalty recommended by its Adjudicative Officer by Rs 70 lakh, Insurance Regulatory and Development Authority of India (IRDAI) has penalised SBI General Insurance Company Ltd Rs 30 lakh for repeatedly violating Insurance Act and the regulations.
The charge against SBI General Insurance Company was that it had repeatedly failed to comply with Section 32D of the Insurance Act and the IRDAI (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015 that mandates underwriting of minimum motor third party insurance business.
According to IRDAI, the insurer should have underwritten motor third party insurance business of Rs 638.34 crore but did only Rs.316.36 crore resulting in a shortfall of Rs.321.98 crore.
Regulator IRDAI has imposed a penalty of Rs 30 lakh on SBI General Insurance Company for its failure to comply with the third-party motor insurance regulations. The SBI General Insurance Company had failed to meet the minimum obligations under Motor Third Party business as specified in concerned IRDAI Regulations for 2018-19, the insurance regulator said in its order. The regulator said the charge was that the insurer did not comply with the MTP obligation for the fiscal year 2018-19. During 2018-19, SBI General Insurance Company had underwritten Rs 316.36 crore as against the minimum obligatory MTP insurance business of Rs 638.34 crore resulting in a shortfall of Rs 321.98 crore. In percentage terms, the shortfall worked out to be around 50.44 per cent of MTP insurance obligation.
State Bank of India (SBI) said that IRDAI has imposed a penalty of Rs 25 lakh on its unlisted subsidiary SBI General Insurance Company for violation of regulations relating to motor third party insurance obligations.
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of Rs 25 lakh on SBI General Insurance Co. (unlisted subsidiary of State Bank of India) for non-compliance with minimum obligations under Motor Third Party Business as specified in IRDAI (Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulation, 2015 for the financial year 2018-19.
This penalty has been imposed for violation of Sec. 32D of Insurance Act, 1938.