Order in the matter of M/s SBI General Insurance Company Ltd.

Last updated: 16 April 2021

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The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of Rs. 25 Lakh on SBI General Insurance Company Ltd. This action follows the company's failure to comply with its Motor Third Party (MTP) insurance obligations for the financial year 2017-18. The IRDAI found a significant shortfall in the MTP business underwritten by the insurer, amounting to Rs. 104.6 crore, which represents a 24.08% deficit against the required amount. This non-compliance, coupled with a similar shortfall in the previous financial year, led to the penalty.

Insurance Regulatory and Development Authority of India Ref. No:IRDA/NL/ORD/MISC/086/04/2021 Date:15-04-2021 Based on the (i) Show Cause Notice (hereinafter referred to as SCN) Dated 4th February, 2020 issued by the Adjudicating Officer appointed by the Authority. (ii) Reply of M/s SB

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FAQ :

SBI General Insurance was penalised for failing to meet its Motor Third Party (MTP) insurance obligations for the financial year 2017-18, as required by IRDAI regulations.

The IRDAI imposed a penalty of Rs. 25,00,000/- (Rupees twenty-five lakh only) on SBI General Insurance.

For the financial year 2017-18, SBI General Insurance had a shortfall of Rs. 104.6 crore, which is approximately 24.08% of its MTP insurance business obligation.

Yes, the insurer also had a significant shortfall in its MTP obligations for the immediate previous financial year, 2016-17, with a deficit of Rs. 146 crore (38.59%).

The basic objectives are to reduce uninsured vehicles, ensure insurers do not refuse to underwrite MTP insurance cover, and spread insurance risk across the industry.

SBI General Insurance must remit the penalty within 45 days, place the order before its Board, and may appeal to the Securities Appellate Tribunal if aggrieved.

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Notification No : Ref. No:IRDA/NL/ORD/MISC/086/04/2021
Published in Miscellaneous
Source : https://irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo4449

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