Page 9 - Insurance Times April 2022

speech this year had said that surety IRDAI proposes lifelong re- insurer companies are encouraged to
bonds can be used as a substitute for offer discounts where there is an im-
bank guarantees for government pro- newability of personal ac- provement in the risk profile of policy-
curement in order to reduce the indi- cident insurance holder, as per the IRDAI draft.
rect cost for suppliers and work contrac- IRDAI is planning to amend insurance Kapil Mehta, Co-founder, SecureNow
tors. The insurance industry had hailed rules so that insurers cannot deny life- says, "The amendments proposed to the
this as a very positive move as this will long renewal of a personal accident IRDA Health Insurance Regulations are
give a big boost to project financing with policy provided the policy has been ear- of different types. From a policyholder
overall improvement in project viabil- lier renewed without a break. . As per perspective the most important propos-
ity. an exposure draft issued by the Insur- als are that personal accident be renew-
However, insurers are seeking legal re- ance Regulatory and Development Au- able lifelong, in portability the onus to
course against defaulting contractors thority of India (IRDAI) on February 16, pull out prior claim information is the
to whom the surety bonds are issued. 2022, an insurer will not be able to deny insurers' and insurers are encouraged
Interestingly, the working group, which lifelong renewal of a personal accident to give discounts on renewals if a
the insurance regulator had formed to insurance policy on the grounds of age policyholder's health or other circum-
study the viability of the surety bonds of policyholder. This is one of the stances improve.
business, had recommended a robust changes proposed in insurance regula- Currently most personal accident plans
legislation for surety bonds and other tions in the exposure draft.
have an upper age cap and senior citi-
non-fund-based guarantees as a neces- Similarly, if a policyholder wishes to port zens are largely uncovered. This issue
sary condition for them to be intro- his insurance policy from one insurer to will be addressed. Also, ported health
duced. another then, once the portability form insurances have a relatively larger num-
is received, then within 5 days the in-
"Surety bonds may also be included in ber of claim rejections where the in-
other Acts such as Insolvency and Bank- surance company shall seek necessary surer says that prior claims were not
details from the existing insurance com-
ruptcy code, 2016 and given equivalent correctly disclosed. This will now reduce
pany.
status as bank guarantees to ensure because insurers will need to speak with
speedy and effective resolution and The amendment is proposed in order other insurers to get claims information
enforcement of indemnity by surety to make the portability of insurance and cannot lay the blame on policyhold-
providers", it had said. policy a time-bound exercise. Further, ers." T

Debasish Panda - New Chairman, IRDAI

Shri Debasish Panda has been appointed as new chairman of IRDAI. Shri Panda is an
officer of Indian Administrative Service of 1987 batch of Uttar Pradesh cadre. His home
State is Odisha. He joined as Chairman, Insurance Regulatory and Development
Authority of India on 14th March 2022.
Prior to joining IRDAI, Shri Panda served as Secretary, Department of Financial
Services, Ministry of Finance, Government of India where he superannuated on
31.1.2022. Shri Panda also served as Joint Secretary (Health & Family Welfare),
Additional Secretary and as Special Secretary (Financial Services) in the Government
of India.
In the State Government of Uttar Pradesh, he served as District Magistrate in Deoria,
Tehri, Uttarakashi & Ghaziabad Districts and as Principal Secretary (Home & Vigilance).
He also held the dual charge of Resident Commissioner of Uttar Pradesh and as the
Chief Executive Officer, Greater Noida Development Authority.
Shri Debasish Panda
New Chairman, IRDAI Shri Panda is a Post Graduate in Physics and has also done Masters in Developmental
Management. He also has M.Phil degree in Environmental Sciences. He has undergone
foreign training in Public Administration from USA & Philippines.

The Insurance Times, April 2022 9