Page 46 - Insurance Times September 2020

Phase Coverage Details
Phase 2 Health insurance & Enhancement of Health insurance to be covered on excess of loss
no. of employees of MSMEs basis when overall losses crosses a threshold basis.
Cover salary charges for MSME >10 employees,
SME, other add on covers and standing charges
coverage
Phase 3 Life Insurance & Enhancement of min. Over a period of time once the impact of
salary reimbursement for employees pandemic is established on morbidity and
of MSMEs mortality, considering the overall exposure
separate pool for Life insurance.
The increase in capacity and surpluses could also
support increase in compensation amount to
MSME employees.

7.1.8. Roles & Responsibilities
Category Role
Pool Administrator Overall administration of pool. To manage the Pool Funds on behalf of the
participating companies
Technical Committee capacity management, product fling process, investment modalities, accounting
setup, claims processes
Investment Committee To set up investment process for the ceded pool reinsurance premium in govt.
securities and pandemic bonds, review of investment guidelines
Pool accounts Render Quarterly statement of premium from insurers, Pool administration cost,
ceding of quota share premium

7.2 Next steps
- Pool formation to be formalised by the Authority by drafting a regulation

- Announcement of pool administrator and technical committee constitution with inclusion of Working Group
members to set up the pool
- Technical committee to fnalise the product structure, evaluate retrocession capacity and multilateral
organization support for Bonds to augment capacity (or reduce govt. backstop), capacity build up and fle the
product with the Authority
- Representation by WG to National/State Government for following support:
• National Government: backstop discussions

• State government(s): Subsidy for premium discussions
• GST Council for waiver of GST for pool premium collection
• National government: for Pandemic pool bond discussion with fxed coupon rate for investment of surpluses
- Press-release on pool structure post pool set up and Government support on backstop, GST waiver, subsidy
on premium
Courtesy: IRDAI
Lloyd's India unveils risk cover products

Lloyd's the world's biggest reinsurance market, has developed products to help India companies of all sizes to mitigate
their exposure to a number of risks involving Covid-19 pandemic. Shankar Garigiparthy, country manager and CEO,
Lloyd's India arm, said the rirm is developing tailored products and committing resources to help organisations mitigate
their exposure to risk and speed up economic recovery.

42 The Insurance Times, September 2020