IRDA directs the insurer ICICI Prudential Life Insurance, to remit the penalty of Rs 118 Lakhs within
a period of 15 days from the date of receipt of this Order through a cross demand draft
drawn in favour of Insurance Regulatory and Development Authority and payable at
Hyderabad.
Due to some technical problems at LCI website the file could not be attached.
However you can access the file at IRDA website:
https://irda.gov.in
Home >> WAP
Warnings and Penalties
or at:
https://irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo1711
A few of points are reproduced below:
"Issue 21 - Inspection Observation 37: The Insurer is canceling policies under 'free look'
option even after few years of issue of the policies, major reason cited as erroneous
accounting.
Issue 23 - Inspection Observation 41: Decision :
The insurer is strongly warned to desist from such practices which are against the
interest of the policyholders.
Issue 23 - Inspection Observation 41:
A lot of delay is observed between the proposal date, remittance date and the completion
date. The insurer has violated Regulation 4(6) of IRDA (Protection of Policyholders' Interests)
Regulations 2002
Issue 23 - Inspection Observation 41:
However, recognizing that
the interest of the policyholders should be protected especially on disclosures , coverage of
risk and settlement of benefits , the insurer is advised to take all measures so as to ensure
that regulatory provisions are not deviated.
Issue 24 - Inspection Observation 42:
b)
Even in cases where the communications are stated to have been sent, it is not 2 months in
advance of the closure of a branch. c) The e-mail and/or SMS are only used to communicate
thus not covering all the policyholders. These are in Violation of Circular dated 28/12/2006
on offices."
