IRDAI slaps Rs. 17 lakh fine on Future Generali

IRDAI has recently imposed a penalty of Rs. 17 lakh on Future Generali India Insurance Co Ltd for violating norms on protection of policyholders’ interests and selling policies without seeking prior approval from the authority. The fine has been slapped on the insurer post an on-site inspection by the IRDAI during January 15-25, 2018, followed by response from the insurer in November, 2020 and personal hearing of the company’s key personnel’s in January, 2021.

The inspection report revealed certain violations of provisions of the Insurance Act regulations, guidelines and various circulars issued there under, IRDAI said in a circular.

Future Generali violated rules under ‘File & Use’ guidelines by selling up-approved add-on covers without approval of the authority. It also violated Protection of Policyholders’ Interests Regulations by restricting the available options to the prospect at the point of sale, IRDAI added.