Page 8 - Insurance Times October 2019

IRDAI

News

IRDAI forms working group to revisit framework on
IRDAI invites applications
trade credit insurance
for regulatory sandbox
In an aim of revisiting the guidelines on trade and credit insurance, the IRDAI
has developed a working group. IRDAI had re-
leased the trade credit insurance guidelines in
2016. “Thereafter, representations have been re-
ceived from various stakeholders to revisit the
scope of the trade credit insurance,” the regula-
tor said in a circular.
The group consisting nine members will look af-
The IRDAI has invited applications ter different aspects, inclusive of current regula-
for its regulatory sandbox from Sep- tory framework, need for changes, risk management, claims handling, pricing,
tember 15. “The Regulatory sand- reserving, and availability of re-insurance support in domestic and international
box regulations define a) an appli- markets.
cant (insurer or insurance interme-
diary or a person other than an in- IRDAI likely to link motor premiums with traffic viola-
dividual having a net worth of INR tion soon
10 Lakh and a standing of one finan-
cial year), b) regulatory sandbox and In a bid to investigate and suggest linking of motor premiums with traffic vio-
c) the sandbox environment,” the lation, IRDAI has, set up a working group on
IRDAI statement had said. the request of government. For the purpose
of implementing the premium escalation for-
The IRDAI had said that the objec- mula, insurance companies will have to un-
tives of these regulations are to dertake a pilot project in the National Capi-
strike a balance between orderly
tal Territory (NCT), Delhi, according to an
development of the insurance sec-
order issued by IRDAI on September 6.
tor on one hand and protection of
interests of policyholders on the As the working group is tasked with submit-
other, while at the same time facili- ting its report within 2 months of the IRDAI order, bad drivers may face a double
tating innovation. whammy soon as penalties for traffic violations have already gone up sharply.
It is also looking to facilitate the cre- According to the IRDAI order, "The Government of India is focusing on Intelli-
ation of regulatory sandbox environ- gent Traffic Management System in the Metropolitan and Smart Cities. In view
ment and to relax such provisions of of this, the Automated Traffic Enforcement and violations of the Motor Vehicles
any existing regulations framed by Act through eChallan have been initiated to take action against Registered
the authority for a limited scope and Owners/Drivers of Motor Vehicles involved in traffic offences. It is perceived
limited duration if such relaxation is that linking Insurance premium to traffic violations committed could reduce
needed. road accidents and change driver behaviour."

8 The Insurance Times, October 2019