Bajaj Allianz Life fined Rs.3.10 crore

    By IANS,

    Chennai: Shareholders of private life insurer Bajaj Allianz Life Insurance Company Ltd were fined a whopping Rs.3.10 crore Wednesday by the insurance regulator for deliberate non-settlement of claims and other violations.

    The company is a joint venture between global insurance major Allianz and Bajaj Finserv, part of the Pune-based Bajaj Auto group.

    In an order issued by the Insurance Regulatory and Development Authority (IRDA) chairman T.S. Vijayan, the life insurer has been directed to pay a penalty of Rs.3.10 crore within 15 days debiting the shareholders account of the company and not the policy holders’ account.

    The penalty is levied for non-payment of death claims, payment of excess remuneration for intermediaries and group companies and violation of IRDA regulations.

    The IRDA rejected Bajaj Allainz’s contention that 78 death claims were rejected as the contract was “unconcluded” because the policy was not received by the policyholder before his death.

    The regulator termed Bajaj Allianz’s practice as unfair and against the policyholder’s interests levied a penalty of Rs.78,00,000 and warned the insurer.

    The regulator also ordered the life insurer to settle the 78 repudiated claims within 180 days along with interest.