New Delhi: Regulator IRDAI on Friday slapped a penalty of Rs 5 lakh on United India Insurance Co for violating norms regarding the settlement of motor claims.
The Insurance Regulatory and Development Authority of India (IRDAI) in an order said it had received a few complaints against the general insurer settling lesser amounts than the insured declared value in case of motor vehicle total loss/theft claims.
IRDAI had conducted an onsite inspection of the insurer from 8-9 November, 2012 and on 11 January, 2013 on settlement of motor (own damage) total loss/theft claims cases.
The inspection covered settlement of motor claims by the insurer during 2009-10 and 2010-11, IRDAI said.
"The company has violated the provisions of general regulation while settling motor claims," said one of the charges levelled by the regulator on the insurer.
The insurer also violated file and use guidelines issued by the Authority, IRDAI said in its second charge.
"After considering all the factors, I am of the opinion that charges 1 and 2 relating to total loss/constructive total loss claims stand confirmed and the samples given stand testimony to this.
"Simultaneously, certain lacunae in compliances by the claimants have also been observed...I hereby conclude that a penalty of an amount of Rs 5 lakh be imposed on the insurer," said the order signed by IRDAI member (non-life) P J Joseph.
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Updated Date: Jan 04, 2019 18:42:20 IST