IRDAI had served show cause notice Bharti AXA General Insurance for consistently submitting wrong data through Health Insurance Regulatory Returns for the FY 2017-18.
“It was also surprising that as against correct figure of 52 lakhs, an abnormally high figure of 7.23 Crores was being incorrectly furnished and this could not be detected by the Insurer despite request from the IRDAI for verification,’’ said IRDAI
Taking into consideration the submissions by the company to the IRDAI, the regulator has warned the company to be careful in future while furnishing data to it.`The insurer is hereby advised to put in place proper checks for furnishing correct data and is also directed to ensure compliance with the extant applicable regulatory provisions hereafter, added IRDAI.
The insurer is expected to have placed effective procedures to validate the system data to avoid any kind of erroneous information being submitted to the IRDAI.
Bharti AXA General Insurance in its submissions to the IRDAI had said that due to certain system related issues, wrong data was forwarded to the IRDAI on number of lives covered under Group Personal Accident Business through ‘Upto the Period’ returns for FY2017-18.
However such explanation It is not acceptable and shows utter negligence on the part of the insurer, said IRDAI.
It is clear that there is no review carried out before furnishing the data. The Insurer must understand that the data forwarded to the Authority is very important as it is published in the Annual Report of the IRDAI and is used by various stakeholders for various purposes. The Insurer is expected to exercise utmost care while furnishing the returns, said IRDAI.