IRDA slaps Rs 5 lakh penalty on NIC

The Insurance Regulatory and Development Authority has imposed Rs 5 lakh penalty on National Insurance Company Ltd for violation of certain norms.

Acting on a complaint from a policyholder, the Authority found that the public sector general insurer had violated norms pertaining to policy proposal and repudiation of claim.

There was also delay in informing the policyholder, who had a shop-keeper's policy, about the rejection of the claim, Mr J. Hari Narayan, Chairman, IRDA, said in an order issued on Wednesday.