What can i claim ?

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This query is : Resolved

AMIT (Querist)

04 August 2010
Sir,

Insurance Company Did.nt issued me policy Bond even after fulling all the requirement necessary to full fillby me for issuing policy by the Company

i have all the prove that states that Insurance Company was at Default,

Now insurance Company agree that it was there default, Not mine in any circumstance,

now insurance Company is compensating with the bank interest on the amount of premium kept idle by insurance company without issuing policy bonds

Sir, can you please tell me what can be the "MAXIMUM PENALTY"for the insurance company

Q1. "FOR NOT ISSUING THE POLICY BONDS TO ME"
Q2."FOR NO COMMUNICATION TO ME REGARDING MY POLICY OR IF ANY REQUIREMENT TO BE FULL FILLED BY ME FOR ISSUING THE POLICY

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

04 August 2010 As you say , insurance company is paying you bank interest.
If you have applied for policy in finanical year and policy bond is not issued in that f.Y, you will not be able to take deduction u/s 80 C of it.
Now you have to pay tax on it.

Hence you can also can demand for losing benefit of deductio of 80C also .
Other's experts veiw are solicited.

AMIT

AMIT (Querist)

04 August 2010 no sir

i means penalty to insurance company.

not want a taxation angel

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

03 August 2025 Got it! You're asking about the maximum penalty that an insurance company can face for not issuing your policy bond and not communicating with you properly, not about any tax implications.
Here’s a clear breakdown:

1. Penalty for Not Issuing Policy Bond
Insurance companies are legally bound to issue policy documents once all formalities and payments are completed.
If they delay or fail to issue the policy, it is considered a breach of contract.
The penalty or compensation can vary depending on the Insurance Regulatory and Development Authority of India (IRDAI) guidelines, or the terms under the Insurance Act, 1938.
Generally, the maximum penalty may include:
Compensation for the delay (like paying you interest on your premium amount, which you are already receiving).
Penalties imposed by IRDAI which can be monetary fines depending on the severity of default.
In extreme cases, the insurance company can be directed to pay damages to the policyholder.
2. Penalty for No Communication Regarding Your Policy
Failure to communicate is also a serious lapse.
You can demand compensation for any loss or inconvenience caused by the lack of communication.
IRDAI expects insurance companies to maintain transparency and timely communication.
Again, monetary fines or penalties can be imposed by the regulatory authority.
You could also potentially lodge a complaint with the Insurance Ombudsman, who can award compensation for non-disclosure or delay.
What You Can Do:
File a complaint with IRDAI or the Insurance Ombudsman in your area.
Seek compensation for the delay in issuance and any financial loss incurred.
Request penalties or fines against the insurer if IRDAI finds them at fault.
Important:
There is no fixed "maximum penalty" amount publicly listed as it depends case by case.
IRDAI exercises discretion based on the facts and severity.
But penalties can include hefty fines and compensation orders.

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