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The solvency margin norms for general insurance companies offering health insurance schemes of the Government have been relaxed by Insurance Regulatory and Development Authority (IRDA).
Acting on requests from the industry, the regulator on Friday said it would allow a maximum period of 180-days if the solvency margin falls below the stipulated 1.50 per cent on account of delay of receivables from Central/State Government.
Till now, IRDA did not differentiate between receivables from Government and non-Government bodies for calculating solvency margin while the insurers are facing considerable delays in receivables from Govt under various health insurance schemes.
“The Authority has received representations from various insurers for relaxing the provisions of regulation for the receivable from the Central/State Government since they experience considerable delay in receipt of the dues which in turn may adversely effects their solvency position,” Mr J. Hari Narayan, Chairman, IRDA, said in a circular while explaining the rationale behind the move.
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