IRDA slaps Rs 20 lakh fine on Apollo Munich Health Insurance

Insurance regulator IRDA has slapped 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 authorised 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.

In addition, the IRDA has imposed a penalty of Rs 5 lakh on Apollo Munich for soliciting business from agents whose licence 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.

Acceptance of risk prior to receipt of premium amounts to violation of a section of Insurance Act, 1938.

On soliciting business from agents whose licence 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.

Curated from: IRDA slaps Rs 20 lakh fine on Apollo Munich Health Insurance

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