IRDA Slaps Rs 20 Lakh Fine on Apollo Munich Health Insurance For Selling Plans via Makemytrip
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Updated date : 20 July 2017
Insurance Regulatory and Development Authority (IRDA) has levied Rs 20 lakh fine on Apollo Munich Health Insurance Company for selling policies through Makemytrip.com (MMT), which is not an authorized platform to sell insurance. IRDA has imposed heavy penalty of Rs 15 lakh on the insurer for violation of the regulatory norms during 2008-09, 2009-10 and 2010-11. The apex insurance body has imposed Rs 5 lakh penalty on the health insurance provider for soliciting business from agents whose license are expired.
Makemytrip gives domestic travel insurance via Apollo Munich, which mainly includes delay in check-in, baggage loss, trip cancellation and more. During its probe, IRDA found Apollo Munich the violator of Insurance Act, 1938 which says that it is not legal to accept the risk of insured person before the receipt of the premium. In its ruling IRDA said, ““It was further observed that premium dues from MMT for the risks accepted were in the range of Rs 16-41 lakh per month during 2009-10”.
Besides, Makemytrip.com, there are other travel portals also, like Yatra.com and Cleartrip.com, which are offering travel insurance. Soon, IRDA may start probing their modus operandi to find out violation of laws, if any.
(Source: This article has been adapted from the article "IRDA Fines Apollo Insurance For Selling Plans Via MakeMyTrip.com" that appeared on March 24, 2015 in trak.in)
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