Norms Violation: IRDAI imposes fine of Rs 1 crore on ICICI Lombard

In respect to an on-site inspection carried out on ICICI Lombard GIC from August 3, 2015 to August 14, 2015, the Insurance Regulatory and Development Authority of India (IRDAI) issued an order to impose a penalty of Rs 1 crore on ICICI Lombard. In addition, the regulator also issued various directions and advisory to the company.

IRDAI held that the insurer had violated the regulation with regard to the maximum allowable policy term for group and individual health products namely, in regards to issuing of group personal accident product with a term more than one year and issuing of individual personal protect policy with a term more than three years. As the violation by the insurer has continued for more than 100 days, the penalty was imposed under Section 1 02(b) of the Insurance Act, 1938.

ICICI Lombard General Insurance offers insurance coverage for motor, health, travel, home, student travel and more. Its products include motor insurance, car insurance, two-wheeler insurance, health insurance, complete health insurance, health booster, personal accident insurance, international travel insurance, home insurance, marine insurance, business insurance, third-party insurance and crop insurance.

At 11 am on Thursday, the stock is trading at Rs 1,316.75, down by 0.53 per cent or Rs 7 per share. The 52-week high is recorded at Rs 1,439.90 and the 52-week low is Rs 827.75 on BSE.