On May 5, 2020, The Insurance Regulatory and Development Authority of India(IRDAI) has set up a panel to frame standard professional indemnity policy for insurance intermediaries that can be issued by all the insurers. It is headed by Yegnapriya Bharat, CGM (Non-Life), IRDAI.Major Highlights
i.The policy offers protection to professionals against potential claims for injury or loss resulting from their advice action for failure to fulfil their duties.
ii.Insurance intermediaries such as insurance brokers, insurance web aggregators, and corporate agents are required to take professional indemnity insurance policies governed by different regulations, in order to get themselves indemnified from the claims lodged against them, which is arisen due to the contingencies mentioned in the regulations governing them.
iii.The existing regulations clearly stipulate the indemnity limit, coverage, excess, and retroactive date.
iv.The panel has been asked to prepare a standard professional indemnity policy “which covers all the contingencies and conditions (retroactive date, indemnity limits, excess, etc) mentioned in the Regulations” that can be issued by all insurers.
Umesh Rathod (The New India Assurance Co), Kasturi Sengupta (National Insurance Co), Surbhi Goel (HDFC ERGO General Insurance Co), and Najim B (TATA American International Group (AIG) General Insurance Co).
The development came after the regulator witnessed several instances where policies taken by insurance intermediaries did not comply with the regulatory provisions.
It was constituted by the Insurance Regulatory and Development Authority Act – IRDA Act, 1999 as an autonomous & statutory body to regulate & promote insurance and reinsurance in the country
Headquarters– Hyderabad, Telangana.
Chairman– Subhash Chandra(C). Khuntia