IRDAI takes action against 8 insurers over health claim lapses
What's the story
The Insurance Regulatory and Development Authority of India (IRDAI) has started the process of issuing show-cause notices to eight insurers for lapses in their health insurance portfolios. The companies under scrutiny are HDFC Ergo, ManipalCigna, Star Health, ICICI Lombard, Niva Bupa, Tata AIG, Care Health, and New India Assurance. The move comes after IRDAI inspections, reported by CNBC-TV18, revealed significant lapses in health claim practices at these firms.
Company reactions
'As an industry leader, we follow high standards...': ICICI Lombard
In response to the IRDAI's actions, ICICI Lombard said that the regulator had issued several regulatory prescriptions over the past year, including master circulars. The company added that these inspections were done in phases to check how well insurers implemented these norms. "ICICI Lombard has gone through the inspection and as an industry leader, we follow high standards of regulatory compliance and corporate governance in all our operations," it said.
Support for inspections
New India Assurance supports IRDAI's right to inspect insurers
New India Assurance also supported the IRDAI's right to inspect all insurers. The company called these inspections "not adversarial" but aimed at promoting better operations and compliance. It also said it has fully adopted the Master Circular. During the inspection, IRDAI flagged a few procedural issues, such as an overly detailed Customer Information Sheet, representation of Product Management Committee members on the Claims Review Committee, and timelines for portability data submission.