Policybazaar.com fined Rs. 1.11 Crore by IRDAI.
The insurance web aggregator failed to comply with the laws of the regulatory body.
The insurance regulatory and Development Authority (IRDA) of India had imposed a fine of Rs. 1.11 Crore on the country’s top insurance web aggregator, PolicyBazaar.com. Accompanying this penalty is a stern warning to follow the rules in the future.
The insurance web aggregator has to deposit the amount of penalty within 15 days of receiving the order by the regulatory body. PolicyBazaar can prefer to appeal to the Securities Appellate Tribune (SAT) under the Insurance Act, 1938 if feels aggrieved in reference to this order, says IRDAI.
As per the insurance regulatory body, PolicyBazaar.com had partnered with Indian Health Organization (IHO) and incentivized its customers, which is against the law. These incentives included complementary health benefits for all eligible customers, unlimited consultation over the phone and second opinion services, 5 OPD consultations, and pharmacy discounts.
All the services offered by IHO were also displayed on the web aggregator’s website, which is an act of violation of the laws of IRDAI.
PolicyBazaar.com had also offered a 60 percent discount on motor insurance policies as per the brand’s TV commercial. According to IRDAI, this is an act of promoting the insurance products of one or more particular insurance players. The insurance aggregator later had removed the advertisement after the concern expressed by the insurance regulatory body.
Well, this is not the first time when PolicyBazaar.com has failed to comply with the laws of insurance aggregation by IRDAI. In its report, the regulatory body has also referred to 2 previous similar incidents from back in 2013 and 2017, which is to ensure that insurance seekers don’t lose their interest as well as to regulate the platform of web aggregation.