Insurance Regulatory and Development Authority (Irda) chairman TS Vijayan has expressed a keen interest in developing an exclusive catastrophe insurance in the wake of the severe damages caused by cyclone Hudhud and Jammu & Kashmir floods.
“Eventually, we need to have a deeper insurance for these things… for catastrophic incidents are recurring in many parts of the country. We may look at having a separate catastrophe insurance as an option,” Vijayan told The Indian Express on the sidelines of an event organised by the National Insurance Academy (NIA).
The demand for a separate insurance had intensified after the Uttarakhand floods last year. Insurance firms had presented a concept paper on catastrophe insurance to the National Disaster Management Authority (NDMA).
However, the proposal is yet to take off as there has been no consensus between insurers and NDMA on who would fund the process and how the pool will function. Currently, India doesn’t have an exclusive insurance scheme for natural disasters.
On extending relief to people affected by cyclone Hudhud, Vijayan said, “the usual practices (measures) are going on at Irda. They include relaxing of the surveyor’s limits and other measures.”
Higher claims in group health insurance
Insurance regulator IRDA has expressed concern over high claims in the group health insurance space. IRDA Member M Ramaprasad said the incurred claims in group health are much higher than in the retail side of the business. IRDA is looking closely into this matter and will look at having higher capital requirements or solvency rates for insurance companies which quote unviable prices. ENS