Irda slaps Rs 22 lakh fine on Kotak Life Insurance

Saturday 08, September, 2012 The Insurance Regulatory and Development Authority slapped a fine of Rs 22 lakh on Kotak Mahindra Old Mutual Life Insurance for violation of various norms on group insurance and death claims. In a order sent to the company, the regulator asked the insurer to pay the amount within 15 days. "Kotak Mahindra violated the guidelines on group insurance policies by not paying the small value death claims directly to the beneficiary. The insurance company routed the claims through the NGO, instead of paying it directly to the beneficiaries as required under the law," the order said. Irda observed that insurer modified the policy terms of complete cover group plans after the clearance of the product. To this, Irda slapped a fine of Rs 5 lakh for introducing such clause without obtaining the prior permission of the regulator and violating file and use guideline.

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