Page 7 - Insurance Times November 2021

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Dividend Criteria for Eq- structing in the same location after a to say that they do not have the aware-
disaster event. ness?” she said. “We should probably
uity Investment under ask them to pay a differential premium
Highlighting the growing risk of climate
"Approved Investment" change and natural catastrophe for the because this is a loss to the country,”
she said.
In continuation to circular no: IRDAI/ Indian insurance industry, Insurance
Regulatory and Development Author- According to Rajeswari, insurance —
F&I/CIR/INV/065/03/2021 Dt 31st
ity of India (Irdai) member S N besides providing protection — also in-
March, 2021 on the subject, the Author-
Rajeswari quoted a report that said creased awareness of risks. She quoted
ity in exercise of its powers conferred
that India was the seventh-most vulner- a study by Lloyds, which said that a 1%
under Regulation 14(2) of the IRDAI (In-
able country to climate change events. increase in insurance coverage can re-
vestments) Regulations, 2016, hereby
“Once-a-century storms are occurring duce the global cost of climate disas-
permits Insurers to classify investments
annually. All the models for charging ters by 22%.
in Preference Shares and Equity Shares
reinsurance or insurance premium are
as part of "Approved Investment" if divi-
going for a toss. It will be difficult to Jana Small Fin Bank ropes
dend is paid on such Shares "for at least have a common model as the situation
2 years out of 3 consecutive years im- is changing from country to country,” in ex-Irdai chief
mediately preceding " instead of "for said Rajeswari, speaking at the annual Jana Small Finance Bank appointed former
at least 2 consecutive years immedi- insurance summit organised by the Na- Insurance Regulatory and Development
ately preceding" (as required under tional Insurance Academy. Authority of India (Irdai) chairman
Regulation 3(a)(4) and 3(a)(5) of IRDAI But even as weather risks were rising, Subhash C Khuntia as part-time chairman.
(Investment) Regulations, 2016) for the the construction density in high-risk ar- The 1981-batch IAS officer was earlier
period from 1st October, 2021 to 31st eas was increasing. “We are seeing chief secretary to the Karnataka govern-
March, 2022. more and more properties being built ment, and secretary in the Centre’s de-
on vulnerable plains and near coastal partment of school education.
Irdai moots premium hike areas. While we have improved early “Financial inclusion has always been
warnings and humans can move to dear to my heart and I am excited at
for rebuilding in disaster
other places, the houses have to be re- the opportunity to work with the board
areas built. This is a no-win situation for the and the management team at Jana in

The insurance regulator has mooted government,” she said. their endeavour towards this noble
the introduction of a differential pre- She said that there was lack of aware- cause,” Khuntia said. Jana Small Finance
mium for insured properties that are ness even among large corporates. Bank is proposing an initial public offer
rebuilt on sensitive terrain after a natu- “There is a need for awareness. Even (IPO) and has filed a draft red herring
ral disaster. This followed an observa- industries are built in the same place prospectus (DRHP) with markets regu-
tion that even industries are recon- after compensation is paid. Do we mean lator Sebi.
The Insurance Times, November 2021 7