IRDAI after examining Go Digit’s “Digital Group Total Protect Policy” filed under `Use and File’ norms had asked the company to withdraw the product as some of its features fall under life insurance products and can’t be offered by a general insurance company
Mumbai:
Mumbai based Securities Appellate Tribunal (SAT) has upheld the insurance regulator’s IRDAI’s decision not to allow Go Digit’s product having life insurance features.
Go Digit cannot do business of general insurance and life insurance business which is prohibited under Section 3(1) of the Act, said the SAT in its order on 4th of this month.
However, it is permissible for insurance companies including Go Digit to market a combi product but the same can only be done as per the procedure provided by the regulations, said SAT.
Earlier, the IRDAI after examining Go Digit’s “Digital Group Total Protect Policy,” filed under `Use and File’ norms, had asked the company to withdraw the product as some of its features fall under life insurance products and can’t be offered by a general insurance company.
Afterwards, GO Digit had filed an appeal in SAT questioning the veracity and legality of the IRDAI ‘s order passed by the member, Non-Life of IRDAI directing the company to discontinue the product “Digit Group Total Protect Policy”.
Go Digit had already launched a product which consist of 28 covers/benefits and had modified the product with extra life features and had sought IRDAI’s approval under `use and file’ regulations.
In response, the IRDA in its order had said GO Digit General Insurance was not registered to carry on life insurance business and directed it discontinue the modified product with immediate effect and, further, withdraw all advertisements regarding the modified product within 15 days from the date of the order.
Go Digit had also argued that such product was provided by other private operators and, in any case Government of India which had launched the Pradhan Mantri Garib Kalyan Yojana through a public sector general insurer for the benefit of healthcare workers wherein benefits were paid for loss of life due to Covid-19 and accidental loss of life on account of Covid-19 related duty.
However, Sat had rejected these argument saying that Pradhan Mantri Garib Kalyan Yojana is concerned, the same has been issued under Chapter II of Chapter IV of Consolidated Guidelines on product filing in Health Insurance business which covers schemes sponsored by the State and Central Government. Nothing has been brought on record to show that the scheme offered by the Central Government does not adhere to the conditions of the scheme as laid down by the Government.