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IRDA penalises New India Assurance for violating rules

IRDA has mandated every non-life insurer to submit information pertaining to policies, premium, claims, agent and offices in prescribed formats within 21 days of the end of every quarter

August 28, 2012 5:22 IST | India Infoline News Service
The Insurance Regulatory and Development Authority (IRDA) has levied a fine of Rs. 5 lakh on New India Assurance Company Ltd as the state-run general insurance failed to comply with an IRDA circular.

IRDA has mandated every non-life insurer to submit information pertaining to Policies, premium, claims, agent and offices in prescribed formats within 21 days of the end of every quarter. Despite repeated reminders, New India failed to submit the required information on time and hence IRDA imposed a fine on New India.

The company submitted the reports for second quarter on 3 December 2011 (against the deadline of 21 October 2011) and reports for the third quarter were submitted on 17 February 2012 (last date 21 January 2012) and for fourth quarter were submitted by 15 June 2012 (against 21 April 2012).
 
The company was issued with show cause notice on 28 November 2011 in this regard which was not replied and the company failed to justify the reasons for the delay. Hence, by not submitting the information as required by the above circular, New India Assurance violated the law.

The Authority imposed a penalty of Rs. 5 Lakh on New India Assurance Company Ltd for the breach of guidelines.

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