State Bank of India (SBI) has announced that insurance regulatory IRDAI has imposed an Rs30 lakh penalty on its unlisted company, SBI General Insurance Company Limited.

Reacting to the development, shares of SBI on Tuesday morning session quote to Rs 358.75 per share, down by Rs. 2.95 as compared to the previous closing price of  Rs. 361.70 at around 10 am.  In comparison, the NSE Nifty stood at14,840.85, down by 101 points

The SBI General Insurance Company had failed to meet the minimum obligations under Motor Third Party business as specified in concerned IRDAI Regulations for 2018-19, the insurance regulator said in its order.

During 2018-19, SBI General Insurance Company had underwritten Rs 316.36 crore as against the minimum obligatory MTP insurance business of Rs 638.34 crore resulting in a shortfall of Rs 321.98 crore. In percentage terms, the shortfall worked out to be around 50.44 percent of MTP insurance obligation. The order said that the insurer stated that they have never refused any MTP policy at any of its place of business.

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