As per IRDA (Insurance Regulator) rules, life and non-life insurers in India, must have to cover a specified number of lives every year. Shriram Life Insurance, Bharti Axa Life and New India Assurance Company Ltd. have been fined by the Insurance Regulatory and Development Authority (IRDA) for not complying with the stipulated norms.
Shriram Life Insurance - a joint venture between Shriram Group, Chennai and Sanlam, South Africa - has been fined for failing to meet business obligations relating to social sectors. IRDA asked the company it to make up for the shortfall during the current financial year. According to IRDA's annual report for 2006-07 released recently, for the second year in succession, Shriram Life did not comply with the regulations. Shriram Life should have covered 7,500 lives during financial year 2006-07 but covered only 5,952.
The other private life insurer, that failed to meet the stipulated social sector obligation is Bharti Axa Life Insurance Company Ltd. The company, which started operations in August 2006, was obliged to cover 3,333 lives but covered only 3,067. Interesting to note that the regulator waived the shortfall as the life insurer was in its first year of operations.
Other than these two, the remaining 14 life Insurers, did achieve social sector obligations. Kudos for that.
Amongst the non-life insurers also known as General Insurers, New India Assurance Company Ltd got the stick from the Regulator. Fortunately other fully operational companies in existence over 2 yrs complied with the norms.
Manish
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