Irda slaps Rs 2 lakh fine on MetLife India

MUMBAI: The Insurance Regulatory and Development Authority has penalised MetLife India Insurance for delay in communicating and processing a life insurance policy.

In order to protect the interests of the customers including the timely commencement of insurance coverage, Irda has mandated that all proposals should be processed by insurers with speed and efficiency and all the decisions should be communicated in writing within 15 days from the date of receipt of proposals.

The regulator has issued a show cause notice to the company in August 2011. During its investigation, Irda observed that the insurer did not pay sufficient attention in promptly communicating in writing and refunding the proposal deposits collected from the complainant within the prescribed timelines.