IRDAI sets up panel to revisit 3 year old trade credit insurance guidelines

Insurance regulator IRDAI has decided to review its three-year old 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 Insurance Regulatory and Development Authority of India (IRDAI) said it has set up a nine-member working group headed by New India Assurance CMD Atul Sahai with an aim to review March 2016 guidelines.

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."

IRDAI 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.