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Reliance Gen Fined for not paying directly to insured

Insurance regulator IRDAI has imposed Rs 5 lakh penalty on Reliance General Insurance Company Ltd for not making direct payments on health insurance claims to policyholders and routing them though third party administrators (TPAs). IRDAI said it's in violation of norms on standardisation of health insurance. The IRDAI norms provide for payment to network providers and settlement of claims of policyholders by making direct payments to them and integrating their banking platform with the network provider or the insured. Also, the insurer is mandated to make the reimbursements by cheque or demand draft if the insured wants so. "...it is evident that the amount against the claims to be paid to the network providers/policyholders is still routed through the TPAs. The insurer can directly transfer funds through electronic means to the network providers or policyholders...," IRDAI said, in an order. PTI
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