Money & Banking

IRDAI forms panel on ‘Indian Pandemic Risk Pool’

Our Bureau Nag Hyderabad | Updated on July 09, 2020

The Insurance Regulatory and Development Authority of India (IRDAI) has formed a working group to examine the feasibility of ‘Pandemic Risk Pool’

“The Covid-19 pandemic, which started as a public health crisis, has led to a significant disruption in the economic activity mainly due to measures taken to stop the spread of the disease,” TL Alamelu, Member, Non-Life, Irdai, said in an order.

Suresh Mathur, Executive Director, Irdai, will be the Chairman for the 9-member working group with industry representatives as members.

Apart from studying the need for such as pool, the group will also recommend the structure and operating model.

As some of the risks such as business interruption losses and loss of employment would result in ``huge losses much beyond the capacity of government, insurers and re-insures there is need to explore the possibility of addressing the risks,’’ Alamelu said.

The group has been asked to submit its report within eight weeks from now.

Published on July 09, 2020

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