Insurance regulator fined 1.11 crore for violating policy bazaar rules

The Indian Insurance and Development Regulatory Authority (Irdai) has imposed a penalty of Rs.1,11 crore on PolicyBazaar, which gathers insurance websites for regulatory violations. The decision was made after a complaint with Irdai to PolicyBazaar on 7 and 10 October 2016.

Eight lawsuits have been filed against PolicyBazaar. Insurance banners have been found guilty of violating four allegations, while in the other four cases they have been warned to be careful in the future and guarantee not to repeat.

According to the Irdai PolicyBazaar's order, it violated the regulation by joining a partnership with the Indian non-health insurance organization by Aetna (IHO) for consulting and OPD services for new customers. According to IRDAI, this is similar to the offering Incentives to customers for policy purchases It also advertises the services offered by IHO on the website. In addition, Irdai punishes the aggregator to share customer information with third parties, in this case IHO.

PolicyBazaar was also found guilty of misleading broadcast advertisements about car insurance on television and receiving warnings. According to the Insurance Act, the insurance web aggregator, as an insurance intermediary, must create a website for providing an interface with insurance opportunities for comparing prices and product information of different insurance companies. And other related matters

In addition to the impressive penalties, Irdai recommends PolicyBazaar to act as an industry leader and avoid wrongdoing. However, if PolicyBazar feels pain over the decision of the regulator, they can appeal to the appellate court under Article 110 of the Insurance Act of 1938.