IRDAI: IRDA has said that the company is not following all the guidelines regarding outsourcing and death claims. It has also directed the company to make a new outsourcing policy.
IRDAI: Insurance sector regulator IRDAI has imposed a fine of Rs 1 crore on SBI Life Insurance. The company was accused of violating the rules related to outsourcing and insurance web aggregators. Apart from this, IRDAI has instructed the insurance company to be careful about death claims. No negligence should be done in such cases.
The company violated many rules and guidelines
IRDA has said that SBI Life Insurance had associated with web aggregators without making an agreement related to services and fees. These include Policybazaar, MIC Insurance, Compare Policy, Easypolicy and Wishfin. Apart from this, the company also did not give correct information about outsourcing payment. Also, three year old claims were rejected. IRDA has directed SBI Life Insurance to make outsourcing policy according to all rules and guidelines.
SBI Life Insurance is not making rules clear in the agreement
The company had claimed that it has handed over post-sale work like premium reminders and policy service assistance to web aggregators. IRDA said that clear information has not been given in the agreement about this. The regulator has come to know that the company has made a payment of Rs 1.93 crore to Extent Marketing and Technologies between the financial years 2017-18 to 2018-19. SBI Life Insurance did not give information about this payment. The company’s vendors were also working through outsourcing. 95 percent of their revenue was being transferred to third parties.
Rules were not followed in rejecting insurance claims
Apart from this, IRDA has asked the company to properly follow the Insurance Act. According to IRDA, SBI Life Insurance had rejected 21 insurance claims. The company said that these claims were rejected due to death within three years of the policy being issued. However, the company could not provide sufficient evidence to support this to IRDA.
