Irdai slaps `1 cr penalty on Chola MS General
Insurance sector regulator Irdai has imposed a fine of Rs 1 crore on Chola MS General Insurance Company Ltd for violating the guidelines on motor insurance service providers (MISPs).
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New Delhi: Insurance sector regulator Irdai has imposed a fine of Rs 1 crore on Chola MS General Insurance Company Ltd for violating the guidelines on motor insurance service providers (MISPs).
The Insurance Regulatory and Development Authority of India (Irdai) had conducted an onsite inspection of Chola MS General Insurance from May 1-4, 2018 and found that there were violations of certain provisions of the guidelines on MISPs issued by the authority in August 2017.
A show cause notice was served on Chola MS in October 2020, followed by replies from the company and personal hearing, Irdai said in its order. Irdai said the insurer violated guidelines with regard to payment, directly or indirectly, to MISP or any of its associate company. The insurer made indirect payments to MISPs, automotive dealers and designated persons on the name of "advertisement" and "professional charges", read the order.
