Page 57 - Insurance Times July 2023

Circular

IRDAI Corner

Risk Based Supervisory Framework prior approval, enhancing ease of doing business and encour-
aging swift response to the market demands. This will boost
27.06.2023
innovation in the products resulting in better choices for the
customers.
With a view to promote a ‘Principle based Regulatory re-
gime’, foster ease of doing business and encourage proac- This comes after the extension of ‘Use & File’ procedure for
tive risk identification and management, the Insurance Regu- all Term Insurance products, Individual Unit linked products
latory and Development Authority of India (IRDAI) has been with existing funds and Non-Linked Group Insurance prod-
working towards developing and implementing ‘Risk Based ucts in October, 2022.
Supervision’ (RBS) framework for insurance sector in India.
For this purpose, IRDAI has collaborated with M/s Toronto
Insurance Companies to settle Biparjoy
Centre (TC), which is a not-for profit organisation, working
Claims on Fast Track
with mission of promoting strong supervision in order to
enhance financial stability, crisis preparedness, and con- 17.06.2023
sumer protection.
Cyclone Biparjoy (June 2023) is likely to have caused loss to
RBS is a shift towards adopting global best practices for
property (homes and businesses) and infrastructure in vari-
supervision which focuses on proportionality, materiality and
ous States. The Sector regulator IRDAI has issued instructions
relies on holistic analysis of the activities of regulated entity
to all General Insurers and Standalone Health Insurance Com-
from risk perspective. In order to ensure robust development
panies to mobilise all resources to ensure immediate service
and smooth implementation of RBS, IRDAI has been engag-
response including engaging the services of investigators,
ing with various stakeholders over the past few months.
surveyors and loss adjustors for quick settlement of claims
After recent deliberations with TC, the first phase of pilots
arising out of the havoc created by the Cyclone.
for RBS are scheduled to commence from July, 2023.
The insurers have been advised to communicate the nomi-
nation of a Senior Executive in each affected State / UT to
Life Insurance products approvals made
the Chief Secretary/ Officer concerned of the State imme-
easy diately.
23.06.2023 Insurers will be responding/assisting the claimants through
their 24x7 helplines, special claims desks at district level with
Insurance Regulatory and Development Authority of India
delegated claims settlement teams for speedy processing
has extended the ‘Use and File’ procedure to Group Unit-
and settlement of claims. Insurers have been advised to
Linked Insurance products, Individual Unit-Linked Insurance settle claim payments/on account payments at the earliest
products which are offered with new funds and Combi prod-
and also encourage policyholders to use electronic commu-
ucts wherein Life Insurer acts as the lead. nication wherever possible for correspondence.
Now, the life insurers can launch these products without

The Insurance Times July 2023 51