Suryajyoti and United Ajod Insurance, along with a dozen other insurance companies, have been found to have provided fake details to the Insurance Regulatory Authority. After discovering the falsified information, the authority is preparing to take action against these insurance companies. There are significant discrepancies between the details provided by the insurance companies and the findings of on-site inspections conducted by the authority, prompting them to take action.
One director of the Insurance Regulatory Authority confirmed that preparations are underway to take action against a dozen insurance companies. He stated, “Nineteen insurance companies are being prepared for action. Among them, one company has even indicated that they will withdraw from this process.” According to him, based on the prevailing regulations, all companies will have to settle claims at a rate of at least two lakh rupees. He further stated that this decision will be made in the upcoming meeting of the executive committee. All preparations regarding this agenda have been completed in the meeting.
According to the director, after the presentation of false information, the authority had requested clarification from the relevant insurance companies. However, since the companies failed to provide satisfactory clarifications, the authority has decided to take action. He said, “Insurance Act 2079, Section 83, states that companies that violate the law, including presenting false information, will face action according to Insurance Act 2079, Section 138.” He added that this is a serious offense, and for the first time, a penalty of two lakh rupees.