Policy Bazaar Insurance Web Aggregator is fined with a penalty of 1.11 crore for violating regulations of IRDA (Web Aggregators) Regulations, 2013 by the Insurance regulator Development Authority of India.
They have suppressed four charges on the Policy Bazaar, which started with the advertisement titled ‘Navaratra Offer’ in which incentives in form of money were offered as complementary benefits to their customers.
It has violated the 3(a)(iii) of IRDA Regulations by getting into an agreement with Indian Health Organisation by Aetna, which does not qualify as an insurer’s product. A web aggregator cannot involve itself other than any business of web aggregation of insurance.
Regulation 11(b)(ii) prohibits any web aggregator to publish any kind of advertisement related to any product, including insurance products but the website contained service offers by IHO.
Policy Bazaar has shared the personal information of the customer with IHO which was established by the customer benefit facilitation letter by Policy Bazaar. It straight away violates the Regulation 14(b) and Clause (a)(iii) of Schedule VII of IRDA Regulations.
Policy Bazaar has also failed to file a copy of the advertisement of ‘Navaratra Offer’ which was displayed on their website and has violated the Regulation 3(1) (v) of IRDA (Insuarnce advertisement and Disclosure) Regulations, 2000, which specifies that a web aggregator has to file a copy of each advertisement with the authority as soon as it’s issued.
IRDAI also suggested that the aggrieved party can file an appeal before the Securities Appellate Tribunal as Section 110 of the Insurance Act, 1938.