Hyderabad:
Regulator IRDA has slapped a fine of Rs 3 crore against Aditya Birla Insurance Brokers Limited (ABIBL), a part part of Aditya Birla Group, for violating the Motor lnsurance Service Provider (MISP) norms.
The IRDA thus far has taken actions against three large brokers, Maruti lnsurance Broking Hero lnsurance Broking lndia and Aditya Birla Insurance Brokers and has imposed a total fine over Rs 8 crore on these three insurance brokers.
Taking a serious note that the affidavit by the principal officer of ABIBL has given wrong facts, the IRDAI has directed that ABIBL not to pay performance incentives to him for one year from the date of this order.
IRDAI has found fault with ABIBL as the broker has directly or indirectly controlled or interfered in determining of premium of policies.
Further the broker has conducted its business in a manner prejudicial to the interest of the policy holder.It has also indulged in manipulation of the insurance business and indulged in unfair trade practices.
Unfortunately, ABIBL failed miserably in complying with the MISP Guidelines which had been created to protect the interest of the policyholders and other stakeholders.This is evident from the penalties imposed for the violations of various provisions of the MISP Guidelines, said the IRDAI.
ABIBL is one of the biggest composite insurance broker having a dominant position in the motor insurance in the country. It belongs to the famous Aditya Birla Group which is a big conglomerate having presence in various sectors of the Indian economy.The Aditya Birla group has a strong presence in the financial sector. Therefore, as one of the top brokers in the motor insurance broking segment, ABIBL is seen in different light.
This places tremendous responsibility on ABIBL to act as a role model for other insurance brokers. In light of such expectations, ABIBL was expected to act diligently and with utmost care and responsibility giving no room for error, said the IRDAI .