Insurance regulator IRDAI has imposed a penalty of I 1 crore on the Chola MS General Insurance Company stating that the insurer has violated certain provisions of the Motor Insurance Service Provider (MISP) guidelines.
IRDAI President Subhash C. The March-8 order issued by Khuntia stated that the insurer paid for displaying advertisement material with four MISPs from November 2, 2017 to December 31, 2019 in violation of the provisions of the guidelines.
“The breach continued for a period of more than two years. Hence the authority imposes a fine of ₹ 1 crore.
“The insurer is directed to ensure in the future that any engagement with automotive dealers is strictly in compliance with the MISP guidelines.”
The charge against Chola MS General Insurance was that he made indirect payments to MISP, motor vehicle dealers and nominees in the name of ‘advertising’ and ‘professional fees’. The order stated that the guidelines set the maximum distribution fee payable to MISPs and noted that neither the insurer should pay directly or indirectly for other payments to the MISP, including advertising expenses, nor to the MISP Such payments should be received from the insurers, the order stated.
In another charge against the Chola MS General Insurance Company that it provides partial data, documents and information to IRDAI, the order stated that the documents are not submitted by the insurer to enable proper inspection. The insurer is directed to ensure submission of information / documents during future inspection.
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