IRDAI Decides to Review 3-Year-Old Trade Credit Insurance Guidelines

As a result of changing market demands, the insurance regulator IRDAI has taken step to review its 3-year-old trade credit insurance guidelines.

Trade credit insurance offers cover to the supplier of goods and services for slow payment process or non-payments of the trade credit.

IRDAI shared that it has organized a group of nine members to review March 2016 guidelines. The CMD of New India Assurance, Atul Sahai will head the group. The panel will study the requirement of and scope for alterations in the existing guidelines in accordance with the needs of several market segments.

As stated in the ToR (Terms of Reference) received by the panel, suitable amendments to the guidelines would be suggested that creates more usefulness to the stakeholders and policyholders like banks and factoring companies.

The other key Terms of Reference is, “To examine the current guidelines on Trade Credit Insurance and products available for catering to the needs of the credit insurance market in India."

IRDAI informed that it will revisit the guidelines once it receives representations from different stakeholders.