Irdai relaxes timeline for insurers to submit reinsurance plans for FY21

In the wake of coronavirus outbreak, insurance sector regulator Irdai has allowed insurers to submit their reinsurance plans for 2020-21 with a lag as the pandemic has disrupted operations across sectors.

Issuing guideline on relaxation of timelines for certain provisions of the IRDAI (Re-insurance) Regulations, 2018, the sectoral watchdog said in view of Covid-19 pandemic, the Government of India has initiated various measures including enforcement of lock-down in various areas.

Similar steps are also initiated by governments of various countries which could result in disruption in the operations of reinsurers, Irdai said.

In the interest of operation of affairs of insurance companies pertaining to their submission of their final reinsurance programme for financial year 2020-21, the regulator has permitted relaxations.

"As per extant regulatory provisions, insurers has to file its board approved Final Re-insurance Programme by 30th April 2020 along with a synopsis of catastrophe modelling report.

"In view of COVID-19 pandemic, it may be difficult for some insurers to adhere with above stipulated time lines. Thus, the insurers may comply with the above regulatory provisions on or before 31st May, 2020," Irdai said.

The regulator said the relaxation is for financial year 2020-21 only.