Insurance Regulatory and Development Authority of India (IRDAI) is issuing show cause notices to 8 insurance companies. This notice is being issued after the flaws in the health insurance portfolio of these companies. These companies include Niva Bupa, Star Health, Care Health, Manipal Sign, New India Assurance, Tata AIG, ICICI Lombard and HDFC ERGO. CNBC-TV18 has come to know about this from sources.
Earlier on June 26, it was reported that IRDAI has found important flaws in the practice of health insurance claims in these insurance companies in its inspection. The regulator inspected in a phased manner to check how well the insurance companies are following the rules and norms.
During its inspection, IRDAI highlighted some procedure issues and caught the attention of insurance companies. These included excessive detail customers information sheet, the Representation of the Product Management Committee Members in the Claims Review Committee, and the time line to submit portability data.
What to say about New India Assurance and ICICI Lombard
New India Assurance has said that IRDAI has the right to inspect all insurance companies. These inspections are not unfavorable, but are aimed at promoting better operations and compliance. The company said that it has fully adopted the master circular.
ICICI Lombard says IRDAI had issued several regulatory instructions including Master Circular last year. The company follows regulatory compliance and high standards of corporate governance in all its work as an industry leader.