IRDAI panel moots standard professional indemnity cover

One can soon expect a standard professional indemnity policy to provide cover to brokers, corporate agents, web aggregators, and insurance marketing firms.

An expert panel of the Insurance Regulatory and Development Authority of India (IRDAI) has suggested a standard policy that will cover all damages resulting from any claim for breach of duty of the insured, fraud, and dishonesty of any employee for which the insured becomes legally liable.

It will not be permissible to issue any public liability insurance policy with unlimited liability, as per the proposed standard policy norms.

On tenure and pricing, the committee suggested that cover (policy) could be on an annual basis and full premium can be made payable at one go at the time of buying the policy.

The insurance regulator has invited comments from all the stakeholders on the proposed policy, which can be submitted to the IRDAI before February 7.