New Delhi: Insurance regulator IRDA has imposed a fine of Rs 2 lakhs on private sector insurer MetLife for failure to follow norms while issuing policy.
"IRDA is satisfied that there has been negligence on the part of the insurer (MetLife India Insurance Company) and consequently imposes a penalty of Rs 2 lakh," said an order issued by the regulator.
Insurance Regulatory and Development Authority (IRDA) has passed the order in connection with the delay in communicating the status of life insurance policy to one Suresh Chukkapalli.
Under the IRDA regulations, an insurer is required to process a proposal with speed and efficiency and communicate the decision to the applicant within 15 days of the receipt of proposal.
The IRDA said "insurer (MetLife) did not pay sufficient attention in promptly communicating the underwriting decision as well as in refunding the proposal deposits collected from the complainant within the prescribed timelines."