The Insurance Regulatory and Development Authority (IRDA) has cautioned the general insurance companies against any deviations from actual product approvals.

 

Insurers file with the Authority new insurance products and modifications to existing insurance products as required by the ‘file & use' norms.

 

Whenever, an insurance product is cleared every insurer should market the product strictly in accordance with the terms and conditions and other features of the product as cleared by the Authority.

 

However, some of the insurers were offering premium rates/discounts outside the range filed with IRDA without specific approval for the same from the underwriter and appointed actuary, among other deviations, Mr R Ramaprasad, Member, Non-Life, said in a circular issued to CEOs of all general insurance firms.

 

 

“This is an unhealthy practice, which besides attracting regulatory penal action, will impact the financials of the Insurer, ultimately affecting the interest of the policyholders and shareholders as well,” he said.

 

Such practices should be stopped and any deviations from norms would attract penal action, he added.