A fine of Rs. 2 lakhs have been imposed on MetLife India Insurance Company, a private sector insurer, by the insurance regulator Insurance Regulatory and Development Authority (IRDA) for not following the norms while issuing policy.
An order issued by the regulator says that IRDA is satisfied that MetLife India Insurance Company has been negligent on their part and hence a penalty of Rs. 2 lakh has been imposed on them.
Because of the delay in communicating the status of life insurance policy to one Suresh Chukkapalli, the Insurance Regulatory and Development Authority (IRDA) has passed this order.
As per the IRDA regulations, a proposal is to be processed by the insurer with speed and efficiency and the decision communicated to the applicant within 15 days of receipt of the proposal.
The IRDA said that the insurer MetLife India Insurance Company did not pay sufficient attention in promptly communicating the underwriting decision as well as in refunding the proposal deposits collected from the complainant within the prescribed time limit.