The Insurance Regulatory and Development Authority of India (IRDAI) has fined insurance comparison website PolicyBazaar for violating several industry regulations.
IRDAI imposed a total fine of INR11.1 million (around US$155,000) on PolicyBazaar after it was found guilty of four of the eight charges filed against it, Livemint reported. The online insurance aggregator also received warnings for the four other charges.
The regulator ruled that PolicyBazaar had run afoul of regulations by partnering with a non-insurance entity, Indian Health Organization by Aetna (IHO). The partnership offered consultation and out-patient medical services to new customers, and PolicyBazaar also advertised IHO services on its website. According to the report, IRDAI considered this akin to incentives to entice customers to buy policies, and a violation of insurance regulations. Furthermore, PolicyBazaar was penalised for sharing customer data with a third party (IHO).
PolicyBazaar was also found guilty of misleading advertising over a television ad on motor insurance, and was issued a warning.
In handing down the penalties, IRDAI advised PolicyBazaar to act as an industry leader and clean up its act. The decision is open to appeal via the Securities Appellate Tribunal.
