Irdai fines Royal Sundaram, Iffco Tokio for lower motor claims payout

Penalty follows charges of violation of motor tariff rules, lack of transparency regarding deductions made under the claims

The Insurance Regulatory and Development Authority of India (Irdai) has imposed a penalty of Rs 500,000 on Royal Sundaram General Insurance and Iffco Tokio General Insurance for settling lower amounts than the Insured Declared Value (IDV) in motor vehicle claims.

The regulatory authority, in its inspection of the matter, found that these two general insurance companies violated the relevant provisions of the General Regulation 8 of All India Motor Tariff, 2002. Moreover, the insurers have been non-transparent regarding deductions made under the motor claims.

The authority had also fined Reliance General insurance under similar charges in August. In all, three general insurers