The Insurance Regulatory and Development Authority (Irda) has slapped a Rs 10 lakh fine on private sector life insurer SBI Life for violating the file-and-use guidelines. The insurer has been asked to pay up within 30 days from the date of the receipt of the order.
The regulator had issued two notices to SBI Life, in September and December. SBI Life responded to the first notice in October 2009 and to the second in January this year. Irda issued the order under Section 102 of the Insurance Act. The insurer was accused of deviating from the approved product through the file-and-use procedure.
The regulator said SBI Life inserted two clauses in the policy document ‘Super Suraksha’ after getting Irda’s clearance.
Source: Business Standard
BS Reporter / Mumbai August 7, 2010, 0:58 IST