COVID-19 updates: Pro-active regulatory measures by IRDAI for policyholders and insurers
April 23, 2020
The ongoing Covid-19 pandemic will undoubtedly have some significant short term and long term implications on the Indian insurance industry, given that it not only affects individuals, but also businesses and economies world over, on an unprecedented scale. All in all, the pandemic is challenging the sector to quickly devise new products to cater to the protection needs of the insured in various sectors. As India enters into its second phase of mandatory nationwide lockdown, the Insurance Regulatory and Development Authority of India (“IRDAI”) and Indian insurance companies (among other financial services) have been permitted to function, subject to exercise of requisite social distancing and precautionary measures.
The situation has undoubtedly caused hardship to policyholders in making premium payments and ensuring continuity of insurance covers, when they need it the most in these uncertain times. Further, traditional insurance distribution channels involving in-person solicitation process have been impacted. In the long run, social distancing will definitely give a push to online and distance marketing insurance sales channels.