Podcast
Questions and Answers
When was the Indian market for terrorism risk insurance formed?
When was the Indian market for terrorism risk insurance formed?
What was the limit of indemnity per location fixed at in April 2014 for terrorism risk insurance in India?
What was the limit of indemnity per location fixed at in April 2014 for terrorism risk insurance in India?
Who is responsible for regulating the insurance industry in India?
Who is responsible for regulating the insurance industry in India?
In what year did the IRDA set up the India Motor Third Party Declined Risk Insurance Pool?
In what year did the IRDA set up the India Motor Third Party Declined Risk Insurance Pool?
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What is the risk-sharing ratio for the India Motor Third Party Declined Risk Insurance Pool?
What is the risk-sharing ratio for the India Motor Third Party Declined Risk Insurance Pool?
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How much total premium was collected by the terrorism risk insurance pool in 2014-15?
How much total premium was collected by the terrorism risk insurance pool in 2014-15?
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Which of the following is not part of the regulatory environment in insurance in India?
Which of the following is not part of the regulatory environment in insurance in India?
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What was the total premium received by the India Motor Third Party Declined Risk Insurance Pool in 2014-15?
What was the total premium received by the India Motor Third Party Declined Risk Insurance Pool in 2014-15?
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Study Notes
Insurance Regulation in India
- The Insurance industry in India was initially regulated by the Controller of Insurance under the Insurance Act 1938.
- The Insurance Regulatory and Development Authority of India (IRDA) is responsible for regulating the industry.
Insurance Market
- The Indian market for terrorism risk insurance was formed in April 2002.
- The initial limit of indemnity per location was ₹750 crores, which was increased to ₹1500 crores in April 2014.
- The total premium collected by the pool in 2014-15 was ₹472.33 crores.
India Motor Third Party Declined Risk Insurance Pool
- The IRDA set up the India Motor Third Party Declined Risk Insurance Pool (DR Pool) in April 2012.
- The pool covers liability only for commercial vehicles that are declined by an insurer.
- The risk is shared by the ceding company, GIC, and the pool in the ratio of 20:5:75.
- The total premium received by the pool in 2014-15 was ₹317 crores.
Regulatory Environment
- The Insurance Act, 1938 and its Rules and Regulations govern the industry.
- The Insurance Regulatory and Development Authority (IRDA) Act, 1999 is another key governing law.
- IRDA regulations also play a crucial role in shaping the industry.
- Tax laws affecting premium and claim proceeds treatment also impact the industry.
- Inheritance laws, which vary between communities and states, also have an influence.
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Description
The Insurance Regulatory and Development Authority of India (IRDA) regulates the insurance industry in India, which has a growing market for terrorism risk insurance and other products.
