For violating some motor insurance norms, regulator IRDAI fined four insurers a total of Rs 51 lakh, including SBI General Insurance Company.
IRDAI charged SBI General Insurance Company with failing to meet its MTP Obligation for the financial year 2017-18, as determined under Regulation 3 of the Irdai (Obligation of Insurers in Respect of Motor Third Party Insurance Business) Regulations, 2015.
A penalty of Rs 13 has been levied on Liberty General Insurance Limited for violating certain provisions of the Guidelines on Motor Insurance Service Providers, according to the order (MISP Guidelines). The insurer was also told to make sure that all potential dealings with car dealers follow the MISP Guidelines to the letter.
For violating certain provisions of the Insurance Act, 1938, Bajaj Allianz General Insurance Company has been fined Rs 10 lakh.
SBI General Insurance Company has been fined Rs 25 lakh for failing to meet regulatory requirements in the Motor Third Party (MTP) market.
- SBI General Insurance - Rs 25 lakh
- Liberty General Insurance- Rs 13 lakh
- Bajaj Allianz General Insurance- Rs 10 lakh
- Royal Sundaram General Insurance- Rs 3 lakh
Third-party car insurance is liability protection in which the insurer compensates the car owner for any civil liabilities incurred by a third party in an accident in which the insured vehicle is at fault.