SBI Life Insurance is planning to appeal against Insurance Regulatory and Development Authority (IRDA) order asking the insurer to refund INR2.75bn ($44.9m) of policy amount collected in violation of norms.
The Dhanraksha Plus Limited Premium Paying Term (LPPT) refund is expected to make up for the higher commission paid by the policy holders.
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SBI Life said in a statement that it will seek a review in the matter as per the Insurance Act and other statutes, and is confident of a fair outcome.
IRDA’s latest directive was issued after an enquiry which revealed that the insurer has been charging the second year premium along with the first year premium on a group insurance policy, Dhanraksha Plus LPPT issued during 2008-09, 2009-10 and 2010-11 years.
