Exposure Draft on Revisiting the product structure for Dwellings, Offices, Hotels, Shops etc and Micro, Small and Medium Enterprises against Fire and allied perils

May 23, 2019 | by Avantis RegTech Legal Research Team


The Insurance Regulatory and Development Authority of India (IRDAI) on May 20, 2019, has issued an exposure draft on revisiting the product structure for dwellings, offices, hotels, shops etc. and Micro, Small and Medium Enterprises against fire and allied perils.

1.Insurers have been permitted to sell add-ons to the basic cover within the framework provided under the extant product filing guidelines for general insurance.

2.Considering the occurrence of various catastrophic events that revealed the huge gap between economic losses and insured losses and also to reduce the protection gap that exists in the segments of dwellings, offices, hotels, shops etc. and Micro, Small and Medium Enterprises against fire and allied perils, IRDAI had set up a Working Group to revisit the product structure in respect of these segments.

3.The Working Group made various recommendations, after which it was decided to work on the product design and draw up the proposed policy wordings, including the terms and conditions in plain language, keeping the target segments in mind. Accordingly, three products have been designed and developed. The introduction of key feature document for these segments has also been proposed and they have also been drawn up.

4.The Report of the IRDAI Working Group on Product structure for dwellings, offices, hotels, shops etc. and MSMEs for cover against fire and allied perils as part land the proposed Key feature documents, prospectus, policy wordings, add-ons and special clauses as Part ll of a comprehensive report on the subject.

All stakeholders are invited to provide their valuable comments on this exposure draft on or before June 07, 2019 in the format prescribed (page 2) to the following e-mail ids [email protected] and [email protected].

Click here to download the Notification.

 


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.