Page 6 - Insurance Times April 2017 Special Issue on Newindia

P. 6

Cyber security guidelines to be prescribed soon Infosys, Tata war could
The Insurance Regulatory and Development Authority of India (IRDAI) has
drafted a comprehensive framework for infor- give rise to professional
mation and cyber security, which is likely to be insurance
finalised soon. According to the proposed After the tug of war between Tata
guidelines, insurers will have to focus on strin- g r o u p
gent data security, among a host of other is- and the
sues. Infosys,
"Cyber security in the financial sector has fears of
gained importance, more so with the advent of technological innovations. In legal li-
this connection, IRDAI has planned to come out with a comprehensive informa- ability on the professionals have
tion and cyber security framework,'' AR Nithiyanantham, Chief General Man- crawled up between the companies.
ager (IT), IRDAI, said in a circular to insurers. Now companies are turning towards
insurance companies for individual
The proposed framework will cover all layers of security such as data, applica-
tions, operating systems and network layers, besides legal aspects pertaining cover for these professionals, so that
they could be retained.
to cyber crimes, the official said.
Corporate directors have already
Motor insurance premium hike will help to clean out been on guard since the new Com-
losses panies Act assumed directors and
the key management personnel to
According to the general insurers, the steep hike in premium rates of motor be the sentinels of governance. The
third-party insurance proposed by IRDAI in some attribution of criminality to the "of-
segments will help ease out losses, according to ficer who is in default" is established
general insurers.
under section 2(60) of the Compa-
The Insurance Regulatory and Development Au- nies Act, 2013, with individuals hav-
thority of India (IRDAI) proposed an annual hike in ing been made liable to penalty or
motor third-party insurance in the 15-50 per cent imprisonment. A mere awareness of
range in different categories of private and commercial vehicles. any wrongdoing makes an official li-

"There has been a moderate increase in the last three years and the proposed able to penal action and/or individu-
hike is slightly higher in comparison," said Sanjay Datta, Chief of Underwriting ally liable, says the Act.
Claims and Reinsurance, ICICI Lombard General Insurance. Anup Dhingra, senior vice-president,
According to S Thirunavukarasu, Country Head-Underwriting and Claim (Motor), Finpro practice leader, Marsh India
Royal Sundaram General Insurance Co, the proposed hike is in line with the Insurance Brokers, said, "After the
overall claims expectation of the industry. recent boardroom battles, the de-
mand for individual cover under the
General Insurance Corporation of India to recruit 33 directors and officers liability insur-
ance has increased."
Officers
These liabilities include cover for le-
General Insurance Corporation of India (GIC) has notified for recruitment of 33
gal cost, the cost of actual settle-
officers. Notification has been released on the official page ment, payout, regulatory and civil
of GIC at gicofindia.com. GIC has invited applications from fines. Globally, over 60 per cent of
Young, Energetic Graduates / Post Graduates with brilliant Marsh's clients buy individual cover
academic record. Vacancies are available in the cadre of As-
for directors, called 'Side A' cover,
sistant Manager (Scale 1). Interested candidates should sub-
mit their application along with the application fees. Only but in India it's still limited to US-
online mode is available for application. listed or very large Indian compa-
nies. In India, the leading global in-
In addition to educational qualification, candidates must be surance broker has over 1,000
in the age group of 21-30 years. Candidates should note that the age limit, edu- blended policies but only 15 of these
cational qualification and other aspects will be calculated accordingly. have separate Side A policies.

6 The Insurance Times, April 2017

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