IRDAI has imposed a fine of Rs 24 lakhs on Policybazaar.com for violating advertisement rules . The company had sent the information to the people through SMS, Irda found it to be inaccurate and confusing.
Policy.com had sent SMS to customers between 15 March 2020 and 7 April 2020. In it, the company had informed about the increase in term insurance premium which was found to be in violation of the rules related to IRDA advertising. The company has been fined Rs 24 lakh for this.
The company had sent an SMS to about 10 lakh customers informing them that the premium for a life insurance policy would increase from April 1, 2020. In this case, customers can save up to Rs 1.65 lakh by purchasing term insurance from their platform. Not only that, the company did not even show its full registered name to the customer in this SMS of its advertisement.
IRDA has leveled three allegations against the company in connection with the SMS from Policy Bazaar. The first is that their advertisement about the increase in the price of premium is misleading. It was also found to have violated Rules 11 and 9 relating to advertising and disclosure. Irda had sought a reply from Policy Bazaar on April 7, 2020.
Policy Bazaar said in a statement that it had received information about premium hikes from HDFC Life, Tata AIA Life and ICICI Prudential. Regarding the non-disclosure of full name, he said that the rules of TRAI allow writing a maximum of six letters in an SMS and that they had sent the SMS under the name of policybaz.