Page 7 - Insurance Times September 2019

IRDAI

News

IRDAI gives nod for insur- Solvency will be maintained in DHFL insurance arms,

ers to be part of inter- says IRDAI chief
creditor pact The IRDAI has stated that it will assure no solvency issues for insurance sub-
sidiaries of troubled Dewan Housing Finance Corpora-
tion. “We will ensure that solvency is maintained. As
of now, there is no solvency issue,” Subhash Chandra
Khuntia, Chairman, IRDAI.
DHFL has defaulted on repayments of borrowings and is
currently working with banks on a resolution plan. The
company has two insurance arms — DHFL Pramerica Life
Insurance and DHFL General Insurance. Insurers have
been permitted to be part of the inter-creditor agreement with banks.
In a recent move, IRDAI has given a Khuntia also stated that the more insurances are needed when there is a slight
nod to insurance companies to be a downturn in the economy. “Unlike other sectors of the economy, we should
part of intercreditor agreements not look at depressed growth rates,” he said. He further underlined that there
(ICA) if the companies wish to join is tremendous scope for insurance penetration and urged insurers to focus on
it, according to thye information re- sectors like motor and health insurance.
ceived from the source.
“We should strive hard to increase growth and should not look at less than
Since the RBI’s June 7 circular does 15% growth in insurance,” he said, while adding that numbers for the first three
not specify whether bond holders to four months of the fiscal have been positive.
like insurance companies can be a
part of the ICA, the insurers had ap- IRDAI issues notice for not buying policies from fake
proached the IRDAI with this issue.
website
However, bankers had earlier stated
that the bondholders cannot be re- With an aim of generating awareness, IRDAI has re-
stricted by RBI's circular from being cently issued a notice for not buying insurance policies
part of the ICA. Through their de- from this fake website: www.irdaionline.org.
benture trustee, insurance players IRDAI also clarified in the same notice that it does not
can be part of the ICA, which will act sell insurance products. Notice issued by IRDAI is titled
as a financial institution. In the case "Fake website irdaionline.org available on internet" and
of DBFL, the insurance companies states: "A website using domain namewww.irdaionline.org is selling insurance
having exposure to the troubled to the public. This domain name is not authorized by the Authority (IRDAI).
housing finance company had held Please note that IRDAI authorized website is having domain name
preliminary talks with the regulator www.irdaonline.org and this website is hosting Centralized Agency Portal. The
and had sought the regulators ap- Authority will take action against any entity that tries to sell insurance with-
proval to be a part of the ICA. out having proper registration. IRDAI does not sell any insurance products."
The Insurance Times, September 2019 7