IRDA slaps Rs5 lakh fine on National Insurance

IRDA observed that the Kolkata-based company should have exercised greater professional care, skill and diligence which they failed to do. The customer was not properly guided at proposal stage and initially claim was declined on grounds that shopkeeper policy does not grant cover for godown

New Delhi: Insurance sector watchdog Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs5 lakh on state-owned National Insurance Company (NIC) for violation of norms, reports PTI.

The regulator fined the insurer for violation of protection of policyholder’s interest regulations, 2002, in a case related to one Abhinav Traders.

In the order, IRDA observed that the Kolkata-based company should have exercised greater professional care, skill and diligence which they failed to do.

The customer was not properly guided at proposal stage and initially claim was declined on grounds that shopkeeper policy does not grant cover for godown, the order said.

IRDA directed the company that the penalty amount of Rs5 lakh shall be paid by NIC within 10 days from the receipt of the order.

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COMMENTS

VINOD

5 years ago

I wonder..one in a million victims of insurance companies get justice..!! At least this exemplary action will pave the way for more victims to get justice..!!

IRDA guidelines for corporate agents of non-life insurance companies

IRDA had in February this year asked non-life insurers to lay down minimum business requirements for agents, which would be monitored on a regular basis. It had said that insurers shall monitor the compliance of these guidelines by agents through appropriate software

New Delhi: The Insurance Regulatory and Development Authority (IRDA) on Wednesday said corporate agents of non-life insurance companies would also come under the guidelines for the minimum business requirements for general agents, reports PTI.

“The said provision of Minimum Business Requirements is now being extended to all corporate agents engaged with non-life insurance companies for soliciting the insurance business,” IRDA said in a circular.

IRDA had in February this year asked non-life insurers to lay down minimum business requirements for agents, which would be monitored on a regular basis.

It had said that insurers shall monitor the compliance of these guidelines by agents through appropriate software.

The regulator had at that time also said that employees of non-life insurance companies cannot engage their relatives as agents.

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Not a single issue hit the primary markets in October

Geojit BNP Paribas research head Alex Matthews said various companies went for IPOs and public issues in August and September, but they performed badly and the IPOs were at below offer price. So, in October companies were cautious

Mumbai: The quantum of funds raised by India Inc through initial public offers (IPOs) and rights issues fell to zero in October this year as not even a single issue hit the market in the month, reports PTI.

“During October 2011, not a single issue hit the primary market compared to Rs3,029 crore raised in September 2011,” according to the latest ‘Capital Market Review’ by market regulator Securities and Exchange Board of India (SEBI).

Commenting on the lull activity in the primary market, Geojit BNP Paribas research head Alex Matthews said private equities and foreign institutional investors (FIIs) are not brining fresh funds due to the slowdown in the US and Eurozone.

He said various companies went for IPOs and public issues in August and September, but they performed badly and the IPOs were at below offer price. So, in October companies were cautious, he added.

Corporates had raised a total of Rs3,029.10 crore through a total of 12 issues, including nine initial public offer (IPOs), in September.

“The cumulative amount mobilised for the financial year 2011-12 so far stands at Rs16,342 crore through 46 issues as against Rs38,388.7 crore through 52 issues during the corresponding period in 2010-11,” SEBI said.

It said that only one Qualified Institutional Placement (QIPs) took place in October which raised Rs40 crore. In the previous month, there were no QIPs.

Preferential allotments witnessed a decline in October 2011, with 18 such allotments raising a total of Rs417 crore.

In comparison, 25 preferential allotments were executed in the primary market in September, which raised a total of Rs499 crore.

After a period of volatility, the stock market witnessed a lot of volatility in October, even though the benchmark Sensex gained 8.9% during the month.

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