Page 30 - Life Insurance Today February 2018

following vis-à-vis issuance of Third Party insurance dated 14th July 2005 (Ref: 015/IRDA/Life/Circular/GI
coverage: Guidelines/2005).
(1) Insurers shall make available to the proposers, on-line
1) Making claim payments directly to group organizer in
channel as well, to obtain Motor Third Party liability
violation of provisions of clause C (7) of above
only policy.
Guidelines.
(2) Insurers shall also liaise with the police authorities to 2) Not conducting any inspection of the books and
facilitate issue/renewal of Third Party liability policy to records of the group organizer or manager during the
owners of the vehicles who are not having Third Party year 2015-16 in violation of provisions of clause C (11)
cover. of the above Guidelines.
(3) Insurers shall ensure the easy availability of Motor TP In the said show cause notice your company was asked to
Insurance and in no case can a request for a TP cover
indicate if a personal hearing, either through video
be denied. conferencing or in person, is required, failing which it is also
categorically stated, that it shall be presumed that your
All the Insurers are advised to strictly comply with these company have no further submission to make and the
directions. matter shall be proceeded based on the material available
on record.
(Yegnapriya Bharath)
Your company vide letter Ref: IFFCO-TOKIO/1004/2017-18
Chief General Manager (Non-Life)
dated 14th September, 2017 forwarded its submissions,
wherein it was submitted that there was an omission owing
Certificate of Registration to which the claims were inadvertently transferred to the

Ref. No:-- Date: 05-01-2018 group holder’s account and that no specific book audit was
conducted during the year (2015-16). It was also submitted
M/s. Edelweiss General Insurance Company Limited has that necessary rectification has been done to ensure that
been registered as a General Insurer under Section 3 of the such lapses would not recur and the Guidelines would be
Insurance Act,1938 with the Authority. The Certificate of fully complied with. Your Company did not seek any
Registration (Form – IRDAI/ R3) was issued to them by the personal hearing.
Authority on 18.12.2017 bearing a registration no.159. On examining the above referred submissions made by
With the above stated registration, the total number of your company, it is clarified that making claim payments
general insurers including standalone Health Insurers directly to group organizer in violation of Clause C (7)
registered with the Authority has gone up to 33. and not carrying out an inspection of the books and records
of the group organizer in violation of Clause C (11) of the
Violations of Group Insurance within referred Guidelines may potentially jeopardize the
interests of the policyholders of the Group Insurance
Guidelines. policies.
Ref. No:IRDA/HLT/WRN/ORD/009/01/2018 However, taking into consideration the rectification
measures stated to have been initiated, your company is
Date:19-01-2018
warned for violating the within referred provisions of
Guidelines on Group Insurance Policies and your company
This has reference to the Notice to Show Cause Ref: 273/
IRDAI/HLT/Comp On NGVKM-Group Policies/2017-18 dated is also directed to ensure compliance of the within referred
01st August, 2017 issued in the matter of a complaint on Guidelines hereafter.
Group Insurance Policies issued by your Company. Please acknowledge the receipt of this letter and confirm
the compliance within fifteen days of this communication.
The Authority is in receipt of a complaint wherein, inter
alia, it was alleged that amounts pertaining to insurance This has the approval of the competent authority.
transactions were in the balance sheet of the Group
Organiser. The within referred Show Cause Notice was Yours faithfully,
issued to your company on noticing the following violations (D V S Ramesh)
to the provisions of Guidelines on Group insurance policies General Manager (Health)

30 February 2018 Life Insurance Today

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010