SBI Life did not settle the death claim, will have to pay a fine of Rs 1 crore

Sector regulator IRDA (Insurance Regulatory and Development Authority of India) has imposed a fine of Rs 1 crore on India's leading insurance company SBI Life Insurance. This fine has been imposed on this subsidiary of the country's largest bank SBI for not following many rules related to insurance. Not only this, one of the reasons for imposing a fine on the company is also the non-settlement of death claims.

IRDA found in its investigation that when SBI Life Insurance signed contracts with web aggregators to sell its products, many rules related to the insurance sector were violated. Not only this, the regulator also found that the insurance company refused to pay the insurance claims of many people. This also includes death claims and for this IRDA has also issued an advisory to the company. IRDA's investigation found that when the company signed contracts with insurance sector web aggregators such as Policy Bazaar, MIC Insurance, Compare Policy, Easy Policy and Wishfin, responsibilities such as premium reminder and policy service assistant were handed over to these aggregators. But the details of these services were not mentioned properly in these agreements.

Apart from this, IRDA has advised SBI Life Insurance to strictly follow the provisions of section 45 of the Insurance Act-1938. IRDA found that SBI Life Insurance rejected about 21 insurance claims. The reason given for this was that the person died within 3 years of taking the insurance, while the information about it was given after the completion of 3 years. On this, IRDA said that the company could not provide sufficient evidence in support of this. In 17 other cases also, the company rejected the death claim because the date of death was within 3 years of taking the policy. On this, IRDA has asked the company to follow section 45.