New Delhi: Insurance sector regulator Irdai has slapped a high quality of Rs 24 lakh on coverage aggregator Policybazaar for violating commercial norms with regard to SMS despatched to clients final yr about enhance in time period insurance coverage coverage premiums.
The matter pertains to Policybazaar sending SMS between March 15, 2020, and April 7, 2020, to its clients with out stipulating its full registered title within the message. The internet aggregator had despatched SMS to about 10 lakh clients telling them that life insurance coverage costs are set to extend from April 1 and that they might save as much as Rs 1.65 lakh by shopping for a time period plan.
The Insurance Regulatory and Development Authority of India (Irdai) levied three prices on Policybazaar — sending deceptive data by way of SMS about worth rise, violation of regulation 11 and regulation 9 of commercial and disclosure norms.
Irdai sought an evidence from Policybazaar on April 7, 2020. It requested it to cease the messages forthwith in addition to to furnish the premise of the commercial.
In subsequent responses, present trigger discover and private listening to, Policybazaar instructed the regulator that the SMS was an informative messaging solely primarily based on the data it acquired from their key insurance coverage companions.
Policybazaar mentioned it acquired communication from HDFC Life, Tata AIA Life and ICICI Prudential that their time period insurance coverage premium will probably be elevated from April 2020.
With regard to sending SMS with out sending its full registered title, Policybaazar mentioned the Trai regulation permits a most of six characters and thus the header of the SMS learn as ‘POLBAZ’.
Policybaazar mentioned it adopted the Trai (Telecom Regulatory Authority of India) tips whereas sending the SMS for solicitation.
In its choice, Irdai mentioned that as per regulation 9, each commercial must state the complete title of the insurer, middleman and insurance coverage agent.
“Policybazaar’s submission that it adhered to Trai regulations is specious and not tenable. The regulation does not mention about header of the advertisement.
“This reasoning is just to cowl Policybazaar’s omission to state its full title in the principle physique of the textual content of the commercial,” mentioned the order.
Hence, on a even handed software of the provisions of laws governing this violation, Policybazaar is levied a penalty of Rs 24 lakh primarily based on the variety of days the SMS was in circulation i.E. From March 15, 2020 to April 7, 2020 for this violation, Irdai mentioned within the order on its web site on Thursday.
Irdai famous that not all of the life insurers elevated their premium charges, and the rise was restricted solely to some insurers so the SMS would have created pointless panic and was utterly avoidable.
“Considering that the SMS was sent to about 10 lakh specific customers of Policybazaar and has the potential to cause avoidable panic among the customers, they are cautioned to be more circumspect when sending such communications in future,” learn the order.
The regulator dropped one other cost associated to commercial norms because the aggregator withdrew the SMS instantly, after it was identified by Irdai to the corporate.
Policybazaar mentioned it had issued the SMS to maintain their clients up to date and to not mislead the shoppers. They additionally confirmed that they’ve stopped the SMS instantly on receipt of the Authority’s communication, Irdai mentioned.
