Page 36 - Insurance Times August 2020

and to mitigate such risks as soon as they are identified.
It has asked the insurers to educate their staff of
possible cyber risks and the associated safeguards to be
taken by the staff while working from home.

4. Products: IRDAI has asked insurers to devise
appropriate insurance products that would provide
protection from risks arising out of COVID-19. The press
release said, "The authority is committed to process
such product approval applications on a fast track mode.

5. Policy servicing and claims: Insurers have been asked
to make special efforts to enable the policyholders to
pay premium using digital methods by educating them government has extended the renewal date for health and
through SMS, emails etc. motor insurance policies. The extension is for people whose
renewal dates for health and motor vehicle insurance policies
IRDAI has said, claims arising on account of COVID-19
fall in the lockdown period. The notification also says that
should be processed expeditiously. Insurers are
encouraged to adopt simplified/expedited claim the order came into effect on 1 April.
procedures for such cases. In addition, other claims
should also be processed within the prescribed period The policyholders whose motor vehicle third party insurance
by making special efforts. policies fall due for renewal during the period on and from
25 March, 2020 up to the 14 April, 2020 and who are unable
6. Grievance redressal: The normal response time for to make payment of their renewal premium on time in view
policyholder complaint redressal is 15 days, due to the of the prevailing situation in the country as a result of corona
prevailing lockdown situation, an additional 21 days is virus disease, are allowed to make such payment for
allowed in respect of all complaints which are received renewal of policies to their insurers to ensure continuity of
on or after 15 March 2020 and up to 30 April 2020. the statutory motor vehicle third party insurance cover from
However, this additional response time is not applicable the date on which the policy falls due for renewal. The IRDAI
to complaints pertaining COVID-19 for which the extant considering the prevailing situation in the country asked life
timelines continue to apply. insurers to extend the grace period for payment of renewal
7. Travel insurance: In cases where insurers have issued premiums by an additional window of up to 30 days if
travel insurance policies which were/are valid between policyholders want it, which was accepted by the industry.
22 March 2020 and 30 April 2020, an option may be
provided to the policyholders to defer the date of travel Solvency margins:
without any additional charge.
Insurers are required to adhere to the applicable accounting
standards framed by ICAI (Institute of Chartered
IRDAI has again asked the insurers to take note of the Accountants of India) and the authority's regulations/
circulars already issued by the authority with respect to circulars on preparation of financial statements and
insurance covers for COVID-19. The insurers should keep
valuation of investments. While insurers ignore MTM gains,
their respective boards informed of the actions taken by
they are required to regard MTM losses as expenses. The
them in dealing with situations arising out of COVID-19. The
IRDAI rejected a request from general insurance companies
authority is constantly evaluating emerging impact of for a blanket relaxation of solvency margins in the face of
COVID-19 on the insurance sector and will issue suitable the COVID-19 pandemic.
instructions from time to time as considered necessary. Also,
digital payments and other online facilities are to be ensured However, it said specific cases would be considered on merit.
for smooth delivery of services and entertainment of claims.
The Council, which represents general insurers, asked for
relaxation in calculating available solvency margins (ASM)
Extension of renewal dates: on account of delays in tenders related to government
With the entire country under lockdown for COVID-19, the schemes and delays in receiving subsidies.

36 The Insurance Times, August 2020