The Securities Appellate Tribunal (SAT) has upheld the IRDAI order directing Go Digit General Insurance to discontinue the Digit Group Total Protect Policy product because the product falls within the scope of a life insurance policy covered by general insurance could not be offered company.
“It is clear from all the provisions that any person wishing to engage in insurance business may do so provided that the person obtains a registration of a specific class of insurance business under Section 3 of the Insurance Act in conjunction with Section 4 of the Regulations 2000,” it said in the arrangement.
“The complainant’s (Go Digit) allegation is that their product already covered accidental death and therefore the addition of Section 29(e) death to the modified product did not partake of the nature of life insurance under Section 2(11) of the Act and that the Insured were only granted one additional/ancillary benefit in the event of death,” it said.
“It should be noted that Section 3(1) of the Act in conjunction with Regulation 4 of the 2000 Regulations clearly provides that each insurer may only carry one class of insurance and not two classes of insurance,” SAT said.
