Page 9 - Insurance Times May 2020

IRDAI

News

Advisory to policyholders guage advising them well in time on Prudent management of
the action to be taken by the policy-
and insurers related to holders for ensuring uninterrupted cov- financial resources of in-
Covid 19 erage in all their insurance policies. surers in the context of

The Authority welcomes the stand of The Policyholders in turn are requested Covid-19 pandemic
the Indian General Insurance industry to read the terms and conditions of
regarding continuity of policies in the their insurance policies carefully and be As part of measures to prudently man-
context of the General Condition in aware of the policy requirements in age their financial resources, all insur-
Standard Fire and Special Peril policy case they or their insured properties ers have been directed to align divi-
where the insureds’ premises are un- are located in areas where there could dend pay-out for the FY 2019-20 so as
occupied for more than 30 days as be prolonged restriction of movement. to be in conformity with their strate-
stated on the website of the General The Policyholders may directly contact gies to ensure that they have adequate
Insurance Council on the 28th April, the insurers or take the assistance of capital and resources available with
2020. This gesture in giving a one-time Agents or Intermediaries through them to ensure protection of the inter-
relaxation for the properties unoccu- whom they have availed the Insurance ests of the policyholders.
pied during the national lock-down Policies. The Insurers, Agents and In-
period between 25th March and 3rd In view of the emerging market condi-
termediaries who have placed business
May, 2020 is in the interest of policy- should work together to ensure that tions, and to conserve capital with the
holders, given the current unprec- Policyholders are guided appropriately insurance companies in the interests of
edented situation. the policyholders and of the economy at
during these difficult times.
The General insurers have been ad- large,insurers are urged to take a con-
vised by the Authority to inform the Clarification in respect of scious call to refrain from dividend pay-
policyholders of how the relevant premium income figures of outs from profits pertaining to the finan-
clause(s) would apply beyond 3rd May, cial year ending 31st March 2020, till
2020 in all policies and what action is life insurance companies further instructions. This position shall
needed by the policyholders to avail of for FY 2019-20 be reassessed by the Authority based on
uninterrupted coverage. The insurers Some newspapers carried a news item financial results of insurers for the quar-
need to take a reasonable and suitable that “Life Insurance Companies have ter ending 30th September, 2020.
approach depending on the local situ- registered 11.4% growth in premium The necessary relaxations on recogni-
ation in different geographies. income in FY20”. This is incorrect as the tion of ‘approved investments’ under
The insurers have also been advised by growth rate of new business life insur- Regulation 3 (a) (4) and 3 (a) (5) of the
the Authority to continue to engage ance premium for FY20 is 20.60%. The IRDAI (Investment) Regulations, 2016,
with their policyholders and give them figure 11.36% is the growth rate of arising out of the above will be sepa-
the necessary guidance regarding the new business life insurance sum as- rately considered. It is further directed
policy conditions in general that may sured for FY20. Similarly, the correct
get attracted during the lock-down or new business life insurance premium that this circular along with the above
immediately thereafter. They should figure for FY20 is Rs. 2.59 lakh crore referred circular dated 13thApril, 2020
communicate directly with the policy- whereas the figure for new business be placed before the Board of the in-
holders through email, SMS or other life insurance sum assured for FY20 is surers at the ensuing meeting under
digital means in clear and simple lan- Rs. 48.26 lakh crore. intimation to the Authority. T
The Insurance Times, May 2020 9