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"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."
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Though vested with powers, IRDA, instead of initiating actions owning responsibility is known for attributing another person or group with responsibility.As IRDA falls into slumber, insurers try to make hay while the sun shines.My observations are backed by solid evidences in my possession.Unless IRDA asserts its rights to intervene in the business practices of insurers, insurance sector will continue to injure the economic health of the insured.