Page 11 - Insurance Times November 2019

Health Insurance

News

Star Health Insurance, Cholamandalam fined Rs. 1 crore for violations

Paytm partner to sell Cholamandalam MS General Insurance Company (GIC) has recently been fined
Rs 1 crore for several violations related to
health insurance products payment of commissions to brokers on sale
Star Health Insurance has recently of health insurance. The insurance regula-
entered into a tor IRDAI had said that the violations had
partnership occurred in 2015-16 in contravention to
with Paytm health insurance regulations, which state
with the aim that commissions are not payable to inter-
of selling mediaries for polices that get ported.
comprehensive health insurance of- “The detail of commission recovery has not been provided by insurer. The viola-
ferings to the digital payments player’s tion was brought to the insurer’s notice during the on-site inspection, in the exit
customers across the country. report shared with the insurer. The violation of insurer has been continued for

Anand Roy, joint managing director 586 days from the date of bringing to its notice and for 2,001 days from the date
of Star Health, said, “This partner- of notifying the regulations, February 16, 2013 to November 1, 2018,” IRDAI said.
ship is an important move towards IRDAI further stated the 2013 regulations “clearly specify that no commission shall
our expansion strategy which in- be payable to any intermediary on the acceptance of a ported policy”.
cludes a strong distribution network
backed by technological innovations Religare, PNB MetLife tie knot for product offering
to take health insurance to every Religare Health Insurance and PNB MetLife India Insurance Co. Ltd. have
individual present in any city or partnered in order to offer a product that would
town across the country.”
cover health, death and illness, said a top offi-
Amit Nayyar, president of Paytm, cial. “We have tied up with Religare Health In-
said, “It is critical to have a deep un- surance, wherein we will bundle and sell their
derstanding of the customer needs health insurance policy with our life insurance
and offer them products tailored to policy,” said Sameer Bansal, chief distribution
their requirements. At Paytm, we officer, PNB MetLife India Insurance Co. Ltd.
are committed to offer health insur-
ance options to our millions of cus- “The product will be offered during mid-December. It will be a seamless inte-
gration [exercise] to ensure that it comes as a single policy to a customer,” Mr.
tomers in the age of expensive
Bansal said. “The tie-up will offer additional earning opportunity for the life
medical treatments, while making a
insurer’s distribution channel partners,” he said. When asked about the growth
convenient customer journey from
purchase to claim. We believe Star plans, he said for FY20 the life insurer had set target of 18-20% growth in top-
Health is the best partner to help us line, increasing the number of branches from 107 to 200 in two years and policy
deliver best in class customised renewal ratio from 78% to 81%.
products and seamless customer “Since the base in Tamil Nadu is small, we are posting good growth. We have ag-
experience.” gressive plans for Tamil Nadu to expand base and to appoint more agents,” he said.

The Insurance Times, November 2019 11