IRDA Fines Apollo Munich Health Insurance for Rs.20 Lakh

Insurance Regulatory and Development Authority (IRDA) has levied a fine of Rs. 20 lakh on Apollo Munich Health Insurance Company, mostly, for selling its policies through the website of makemytrip.com, which is not authorized to sell insurance. Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 15 lakh on the insurer for violation of the regulatory norms during 2008-09, 2009-10 and 2010-11. IRDA has also imposed a penalty of Rs 5 lakh on Apollo Munich for soliciting business from agents whose license had expired. IRDA observed that "the health insurer has accepted risks prior to receipt of premium" from makemytrip.com (MMT). "It was further observed that the premium dues from MMT for the risks accepted were in the range of Rs 16-41 lakh per month during 2009-10," the regulator said.

When a risk is accepted before receiving the premium it is considered as a risk and amounts to violation of a section of Insurance Act, 1938. On the issue of soliciting business from agents whose license had expired, IRDA said: "Solicitation of insurance business after expiry of license is a serious violation." In a separate order, the regulator imposed a fine of Rs 10 lakh on Agriculture Insurance Company of India for violation of various norms, including those related to guidelines on corporate governance.

In its submission before the regulator, the general insurer had accepted the lapse of not collecting intermediary details in the proposal form. There were 14 charges against the insurer and fine was imposed in two of the charges.

Source: Press Trust of India

Source-Medindia