Page 11 - Insurance Times December 2023

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BimaKavach receives, IRDAI IRDAI waives the arbitration clause for retail busi-
license. nesses.
IRDAI has granted BimaKavach a license
Since policyholders have other options for resolving their grievances, the Insur-
to engage in direct insurance broking,
ance Regulatory and Development Authority of India (IRDAI) excluded the
allowing the company to aggressively
retail segment of the general insurance market from the arbitration clause.
promote its tailored portfolio of insur- This means that only commercial business lines will be covered by the clause.
ance products to companies through-
out India. "Insurer's Grievance System, Insurance Ombudsman, and Consumer Courts, in
addition to Civil Courts, available for redressal of their grievances or disputes,"
The company specializes in digitizing
the regulator stated. "Retail or individual policyholders may be excluded from
cyber and criminal insurance and pro- the provisions of the Arbitration Clause."
vides immediate quotations, making
online shopping and serviceability This ruling came about as a result of the IRDAI reviewing the Arbitration Clause
easier. It also offers customized advice after the Supreme Court had issued a referral on the subject. The updated
clause, which reads as follows: "The parties to the contract may mutually
and solutions.
agree and enter into a separate Arbitration Agreement to settle any and all
BimaKavach streamlines the insurance disputes related to this policy," will apply to all commercial line insurance fol-
procurement process for enterprises lowing the revision.
with its portfolio of eighteen insurance
products, which are categorized into The Arbitration and Conciliation Act of 1996's provisions will be followed and
areas including liability, asset, engineer- adhered to in conducting the arbitration.
ing, marine, and group health insur- According to the regulator, unless the policyholder requests that the commer-
ance. Businesses no longer require sev- cial lines clause be substituted in its place, the clause will remain applicable to
eral brokers because they can now all current retail plans until the policy's term expires.
manage various coverage options from The clause will be deemed eliminated for all new retail policies, and it will
a one, central site. remain applicable for all commercial policies from the date of renewal that
falls on or after the circular's effective date.
IRDAI provides insurers
with a combined exposure non-life insurance businesses. Rather business ease and streamline regula-
draft on EoM. than keeping distinct regulations for the tions by shifting to a principles-based
commission and EOM, the RRC sug- framework for increased efficacy.
Based on the advice of the Regulation
gested combining both into one.
Review Committee (RRC), IRDAI has After removing three different regula-
produced an exposure draft on the Ex- IRDAI has instructed the Councils to tions, the RRC suggested the IRDAI
penses of Management (EoM) that in- form an RRC with members from all (EoM, including commission, of insur-
cludes a commission for both life and stakeholder groups in order to improve ers) Regulations 2023.

The Insurance Times December 2023 11