Page 8 - Insurance Times April 2021
P. 8

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.
                                            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
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