IRDAI sets up panel to review trade credit insurance guidelines in 2016

The Insurance Regulatory and Development Authority of India (IRDAI) has set up a nine-member working panel headed by New India Assurance CMD Atul Sahai with an aim to review its March 2016 guidelines on trade credit insurance in line with the changing requirements of the market. Trade credit insurance policy provides coverage to supplier of goods and services against delay in payment or non-payments of trade credit. The panel, which has been asked to submit its report in three-months, would study the need and scope for changes in the current guidelines keeping with the times and requirements of various segments of market.

As per the terms of reference (ToR) given to the panel, it would also suggest suitable amendments to guidelines that add value to the policyholders and stakeholders such as banks and factoring companies. Another key ToR is to examine the current guidelines on Trade Credit Insurance and products available for catering to the needs of credit insurance market in India.

Insurance regulator said it decided to revisit the guidelines after it received representations from various stakeholders. They wanted the regulator to revisit the scope of the trade credit cover.