CIC: intimate the action taken by IRDA on the complaint made against Max New York Life Insurance Company Ltd. and the outcome - u/s 19(8)(iii), IRDA directed to issue specific guidelines to the insurers to print administrative costs of servicing policy
19 Oct, 2013The status of the four complaints made by appellant and the outcome of any investigation done by the IRDA regarding the gifting of gold coins for the promotion of insurance business by Max New York Life Insurance Company Ltd. - PIO provided a copy of the response received from the insurer - CIC: IRDA cannot shy away from taking cognizance of such a serious allegation by a responsible senior citizen - PIO to provide information regarding any action taken by the IRDA on this specific complaint made by the appellant and if such action has been initiated, then the outcome of the action will be intimated to the appellant - u/s 19(8)(iii), the IRDA directed to issue specific guidelines to the insurers to appropriately print the administrative costs of servicing the policy for the prospective buyers
Facts:
1. RTI application was submitted by Shri Jai Kanwar before the CPIO, IRDA, Hyderabad to seek information regarding the status of the four complaints made by him and also to know the outcome of any investigation done by the IRDA regarding the gifting of gold coins for the promotion of insurance business by Max New York Life Insurance Company Limited.
2. Vide CPIO order dated 19 September 2011, the appellant was provided with a copy of the response received from the insurer.
3. Applicant preferred appeal dated 24 September 2011 before the first appellate authority. Matter was disposed of vide FAA order dated 20 October 2011 vide which the order of the CPIO was upheld. Further, appellant was informed that the redressal of the appellant’s grievances was outside the purview of the RTI Act.
4. Appellant preferred second appeal before the Commission.
5. Matter was heard today via videoconferencing from Hyderabad where CPIO as above was present and made submissions. Appellant was present at Ambala.
6. Appellant submitted that he had not received a response regarding any action taken by IRDA regarding the issue raised by the appellant in the second paragraph of his RTI application pertaining to the promotion of the insurance business by the above mentioned insurer by offering gold coins. CPIO submitted that the appellant could escalate the matter of his grievance through the Grievance Call Centre or by using the online Integrated Grievance Management System of IRDA.
Decision notice
7. After hearing both parties, Commission accepts the argument put forward by the appellant that he has not received any response from the CPIO regarding action, if any, has been taken by the IRDA on the complaint made by in the second paragraph of his RTI application pertaining to the offering of gold coins for promotion of insurance business by the insurer. In the commissions view, this matter is serious in nature and touches the very roots of the ethics required to be maintained in the insurance business. As the regulator, the IRDA cannot shy away from taking cognizance of such a serious allegation by a responsible senior citizen. Commission therefore directs the CPIO to provide information regarding any action taken by the IRDA on this specific complaint made by the appellant and if such action has been initiated, then the outcome of the action will be intimated to the appellant.
8. Information to be provided within four weeks of receipt of order. Through this order, Commission also highlights the point made by the appellant that the IRDA, in the interest of greater transparency and trust ensure that all insurers appropriately publish on their policy bond the clauses pertaining to the administrative costs of servicing the policy. In pursuance of the powers of the commission under section 19 (8) (iii) requires the IRDA to issue specific guidelines to the insurers to appropriately print the administrative costs of servicing the policy so that this information becomes is to the prospective buyers of the insurance policies at point of purchase.
A copy of the directions issued by IRDA to be marked to the Commission and to the appellant.
(Smt. Deepak Sandhu)
Information Commissioner (DS)
Citation: Shri Jai Kanwar v. IRDA in Appeal: No. CIC/DS/A/2012/001700