Page 9 - Insurance Times February 2021

IRDAI

IRDAI proposes extension services in a controlled/test regulatory general insurance council can be kept

in sandbox norms environment for which regulators may in view for guidance alongwith rates
fixed by State Governments and Union
(or may not) permit certain relaxations
IRDAI has proposed to extend the for the limited purpose of the testing. Territory administration, if any and as
validity of regulatory sandbox The RS allows the regulator, relevant," it said.
guidelines by two years as the innovators, financial service providers
proposals received under it require and customers to conduct field tests to IRDAI to introduce
more time for completion.
collect evidence on the benefits and standard products for fire,
To give a fillip to insurance penetration risks of new financial products and
and facilitate innovations in the sector, services. allied peril
especially those triggered by IRDAI has decided to introduce a
technology, the regulator had notified IRDAI advises Insurers to standard home insurance policy that
the IRDAI (Regulatory Sandbox) will cover the risks associated with
Regulations, 2019 on July 26, 2019. fix Covid-19 treatment natural calamities like cyclone, flood,
The regulations are scheduled to ex- rates earthquake and also fire. The regulator
pire on July 25, 2021. IRDAI has advised general and health also announced two schemes that
The Insurance Regulatory and Devel- insurers to have agreements with cover insurance cover to micro and
small enterprises.
opment Authority (IRDAI) invited appli- health providers on rates for
cations for the first cohort of the regu- treatment of Covid-19 on the lines of Besides offering coverage for the
latory sandbox from September 15, other diseases. home building, the proposed policy -
2019 till October 14, 2019. A total of In a circular, the regulator said in case Bharat Griha Raksha - covers general
173 applications were filed with it. of 'cashless claims' under a health home contents automatically (without
any need for declaration of details) for
It announced the second cohort for one insurance policy, the claims should be 20 per cent of the sum insured for the
month starting from September 15, settled as per the tariff decided by the building subject to a maximum of Rs 10
2020 and received 185 applications. parties in compliance to provisions of lakh. "One can also opt for a higher
the regulation concerned.
In an exposure draft, the regulator said sum insured for general contents by
it was observed that most of the However, the insurers should make declaring the details," IRDAI said.
proposals could not be completed efforts to have agreement with health According to the IRDAI, Bharat Griha
within a period of six months due to providers on rates for treatment of Raksha will offer cover against a wide
Covid-19. They were, therefore, Covid-19 similar to other diseases for range of perils, namely fire, natural
granted extension by another six which rate agreements are in place, catastrophes (storm, cyclone, typhoon,
months to complete the experiment. IRDAI said. tempest, hurricane, tornado, tsunami,
Regulatory sandbox (RS) usually refers "Also, while entering into such flood, inundation, earthquake,
to live testing of new products or agreements, the reference rate of subsidence, landslide, rockslide),
The Insurance Times, February 2021