Page 8 - Insurance Times April 2021

IRDAI News

IRDAI directs insurers to bonus available, if any, to the order, the Guidelines stipulate the
policyholder. This will be notified to the maximum distribution fees payable to
periodically notify policy-
policyholders within 15 days of MISPs and mention that neither the
holders settlement of claim. insurer should pay directly or indirectly

With an objective to ensure flow of to the MISP other payments, including
relevant information to policyholders, IRDAI fines Chola MS the advertising expenses, nor the MISP
IRDAI has recently specified certain General Insurance Rs. 1 should receive such payments from
norms to be followed by the insurers. insurers.
crore for undue payments
Health insurance policyholders will now The insurer is directed to ensure in
be able to get a regular updates and IRDAI has recently imposed a Rs. 1 future that any engagement with
periodical notifications about their crore penalty on Chola MS General automotive dealers is strictly in
policy from the insurance company. Insurance Company stating that the compliance with MISP Guidelines.
IRDAI now feels it to be important to insurer has violated certain provisions
periodically notify the policyholders of the Motor Insurance Service IRDAI issues guidelines for
about certain relevant and important Provider (MISP) Guidelines.
details relating to health insurance According to an order issued by IRDAI standard personal
coverage. IRDAI has asked the insurers Chairman Subhash C. Khuntia, the accident insurance
to initiate the process at the earliest insurer had engaged with and made Insurance Regulatory and
and not later than 1 June, 2021. payments towards display of Development Authority of India has
The information will be communicated advertisement material with four directed all general and health
by insurers to all the policyholders MISPs from November 2, 2017 to insurance companies to mandatorily
twice in a year, i.e., 6 months after December 31, 2019 in contravention of offer a standard personal accident
issuance of policy and at least 1 month provisions of the Guidelines. "The insurance policy by 1 April, 2021. The
prior to the renewal due date. In case violation continued for a period of said policy, which will be named 'Saral
of a multiyear policy, the information more than two years. Therefore, the Suraksha Bima', succeeded by name of
can be shared with a frequency of 6 Authority imposes a penalty of Rs. 1 the insurance company, will be offered
months from the date of issuance of crore", the order reads. with a tenure of 1 year.
policy.
The allegations against Chola MS An exposure draft on "Guidelines on
In addition, in the event settlement of General Insurance was that it made Standard Personal Accident product"
any claim under a health insurance indirect payments to MISP, automotive along with standard terms and
policy, the insurer will also dealers and designated persons in the conditions had been issued by IRDAI to
communicate the details of balance name of 'advertisement' and make available a standard personal
sum insured along with the cumulative 'professional charges'. As per the accident product with common

8 The Insurance Times, April 2021