The Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 5 lakh on HDFC Standard Life Insurance Company for violating norms on claim settlements.
The fine was imposed based on an enquiry conducted by the regulator with regard to a complaint filed by a policy holder on non-receipt of death claims in 2009.
“It is noticed that the claim was repudiated after a gap of around 12 months from the date of receipt of claim intimation. The life insurer resorted to claim investigation before deciding on the repudiation of the claim under reference,” Mr J. Hari Narayan, Chairman, IRDA, said in an order.
It was also found that more than six months had lapsed in respect of a few more individual death claim cases without deciding the admissibility, among others.
The fine was imposed as norms were violated in these cases, the IRDA Chairman said.