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India,United Kingdom : AVIVA LIFE INSURANCE fined for violating business practices.

The Indian insurance regulator, fined private life insurer, Aviva Life Insurance Company Ltd for violating and deviating from the fundamental principles of life insurance contracts and regulatory provisions.

The regulator ordered the company to pay back premium charged from policyholders without their prior consent on various policies along with interest.

Levying a fine of Rs. 500,000 on Aviva Life Insurance, Insurance Regulatory and Development Authority (IRDA) chairman T.S.Vijayan said that informing the policyholders of additional premium while sending the policy document is considered as a violation of "fair business practices" and "regulatory provisions."

In respect of policies of terms and conditions being modified and issued without the prior consent of the policyholders, the IRDA chief directed Aviva Life to restore the terms and conditions as originally proposed.

The company directed to refund the additional premium or charges collected with half-yearly compounding interest at 2% above the bank rate on April 1, 2014 by debiting shareholder's account.

The company is a joint venture between India's Dabur group and the Britain's Aviva group.

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Publication:Mena Report
Geographic Code:9INDI
Date:Nov 6, 2014
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