Hyderabad:
The insurance regulator IRDAI has slapped a fine of one crore rupees against Acko General Insurance (AGIL) for violating various provisions of IRDA(Insurance Advertisements and Disclosure) Regulations, 2000.
AGIL's investors include high-profile backers like Narayana Murthy and Kris Gopalakrishnan of Infosys, DSP Blackrock's Hemendra Kothari, Hexaware's Atul Nishar and Arpwood's Rajeev Gupta besides venture capital firms SAIF Partners and Accel India.
The IRDAI, while examining the advertisements filed by AGIL in advertisementmodule of Business Analytics Project (BAP) as well as the advertisements thatappeared in various media, observed that the insurer has violated the provisions inrespect of IRDA (lnsurance Advertisements and Disclosure) Regulations, 2000, said IRDAI.
The advertisement on Motor lnsurance-Quick Ride is found to be unfair or misleading for it discloses insufficiently the limitations/conditions of policy contract, the regulator added.
Though, the IRDAI had detected violations by the AGIL on four counts,the company has been fined with monetray panlaty for only one count.
AGILhas acknowledged the fact that there were inadvertent lapses on their part for not filing the advertisements. the insurer has assured the IRDAI that there was no intent of AGIL to mislead the prospective customers with the content, said IRDAI.
“Some advertisement that shows Acko General lnsurance (now officially 2nd best in the world) is in violation of the regulations The Insurer’s submission that post was published by an independent agency and only the web link of the postwas provided by AGIL is not acceptable. It is my considered view that the insurer should indeed object to any entity carrying out such posts which are not in compliance with extant Regulations/ Circulars applicable to insurers instead of facilitating web link to the post,'' said IRDAI chairman SC Khuntia.
“Taking into consideration the submission that the company has removed the said advertisement, the Insurer is hereby cautioned to exercise care and diligence in complying with the IRDA (Insurance Advertisements and Disclosure) Regulations, 2000 and Master Circularissued thereunder,'' said Khuntia.