Insurance – Interesting – Code of Code mandates that TPA of Health Services not to lend or grant any loan to any other company, entity or individual not connected with its TPA business – Penalty for violation
Insurance – Interesting – Code of Code mandates that TPA of Health Services not to lend or grant any loan to any other company, entity or individual not connected with its TPA business – Penalty for violation
The Code of Conduct issued under Clause 2(s) of Schedule II of Regulation 23 of IRDAI (TPA-Health Services) Regulations, 2016, mandates not to lend or grant any loan.
During inspection of the M/s. Anmol Medicare TPA Ltd in December, 2021, the Authority found that TPA had given loan to four individuals other than employees.
In case of Mr. Jay M. Shah, it was found that loan of Rs.10 lakhs was given, repayment was made to the Company and not to the TPA. The transaction was rectified in the accounts of TPA only on 30.3.2022.
In case of other three persons, the accounts were not maintained appropriately and payments were not recorded.
After show cause notice and hearing, decision was given on 9.1.2024 to impose penalty of Rs.1 lakh only for giving loan of Rs.10 lakhs to Mr Jay M Shah and caution in three other cases.
Order dated 9.1.2024 in the matter of M/s. Anmol Medicare TPA Ltd.
