Page 7 - Insurance Times November 2021
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         Dividend Criteria for Eq-          structing in the same location after a  to say that they do not have the aware-
                                            disaster event.                    ness?” she said. “We should probably
         uity Investment under                                                 ask them to pay a differential premium
                                            Highlighting the growing risk of climate
         "Approved Investment"              change and natural catastrophe for the  because this is a loss to the country,”
                                                                               she said.
         In continuation to circular no: IRDAI/  Indian insurance industry, Insurance
                                            Regulatory and Development Author-  According to Rajeswari, insurance —
         F&I/CIR/INV/065/03/2021 Dt 31st
                                            ity of India (Irdai) member S N    besides providing protection — also in-
         March, 2021 on the subject, the Author-
                                            Rajeswari quoted a report that said  creased awareness of risks. She quoted
         ity in exercise of its powers conferred
                                            that India was the seventh-most vulner-  a study by Lloyds, which said that a 1%
         under Regulation 14(2) of the IRDAI (In-
                                            able country to climate change events.  increase in insurance coverage can re-
         vestments) Regulations, 2016, hereby
                                            “Once-a-century storms are occurring  duce the global cost of climate disas-
         permits Insurers to classify investments
                                            annually. All the models for charging  ters by 22%.
         in Preference Shares and Equity Shares
                                            reinsurance or insurance premium are
         as part of "Approved Investment" if divi-
                                            going for a toss. It will be difficult to  Jana Small Fin Bank ropes
         dend is paid on such Shares "for at least  have a common model as the situation
         2 years out of 3 consecutive years im-  is changing from country to country,”  in ex-Irdai chief
         mediately preceding " instead of "for  said Rajeswari, speaking at the annual  Jana Small Finance Bank appointed former
         at least 2 consecutive years immedi-  insurance summit organised by the Na-  Insurance Regulatory and Development
         ately preceding" (as required under  tional Insurance Academy.        Authority of India (Irdai) chairman
         Regulation 3(a)(4) and 3(a)(5) of IRDAI  But even as weather risks were rising,  Subhash C Khuntia as part-time chairman.
         (Investment) Regulations, 2016) for the  the construction density in high-risk ar-  The 1981-batch IAS officer was earlier
         period from 1st October, 2021 to 31st  eas was increasing. “We are seeing  chief secretary to the Karnataka govern-
         March, 2022.                       more and more properties being built  ment, and secretary in the Centre’s de-
                                            on vulnerable plains and near coastal  partment of school education.
         Irdai moots premium hike           areas. While we have improved early  “Financial inclusion has always been
                                            warnings and humans can move to    dear to my heart and I am excited at
         for rebuilding in disaster
                                            other places, the houses have to be re-  the opportunity to work with the board
         areas                              built. This is a no-win situation for the  and the management team at Jana in

         The insurance regulator has mooted  government,” she said.            their endeavour towards this noble
         the introduction of a differential pre-  She said that there was lack of aware-  cause,” Khuntia said. Jana Small Finance
         mium for insured properties that are  ness even among large corporates.  Bank is proposing an initial public offer
         rebuilt on sensitive terrain after a natu-  “There is a need for awareness. Even  (IPO) and has filed a draft red herring
         ral disaster. This followed an observa-  industries are built in the same place  prospectus (DRHP) with markets regu-
         tion that even industries are recon-  after compensation is paid. Do we mean  lator Sebi.
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