The Insurance Regulatory and Development Authority of India (IRDAI) has issued show cause notices to 8 insurance companies after finding major flaws in their health insurance claim processes.
According to CNBC-TV18 sources, the companies named are Niva Bupa, Star Health, Care Health, Manipal Cigna, New India Assurance, Tata AIG, ICICI Lombard, and HDFC Ergo.
Earlier on June 26, it was reported that IRDAI found serious issues in the way these insurers were handling health insurance claims during an inspection.
This phased inspection was conducted to check if insurance companies were following all required rules and regulations.
During its review, IRDAI pointed out several process-related problems.
These included very detailed customer information sheets, the way members of the product management committee are involved in claim review decisions, and delays in submitting portability data.
Statements from New India Assurance and ICICI Lombard
New India Assurance stated that IRDAI has the authority to inspect all insurance companies.
These inspections are not meant to be negative but help improve governance and compliance. The company confirmed that it has fully followed IRDAI’s master circular.
ICICI Lombard also responded, saying IRDAI had issued several guidelines including a master circular last year.
As a leading company in the sector, ICICI Lombard mentioned that it follows strict standards of regulatory compliance and corporate governance across all its work.
