Do not depend only on ratings; use your own judgment too: Irdai to insurers

Many insurance companies have exposures to the beleaguered IL&FS group as part of their investment portfolio

The insurance companies have to use their own judgment and cannot simply rely on the credit rating assigned to their investment by the rating agencies, the insurance regulator said in an advisory to the insurance companies.

“Our requirements is that investment should be in highly rated instruments. In case there is a change in the ratings, they will have to take appropriate action”, Irdai chairman Shubash Chandra Khuntia said.

“We have told insurance companies besides rating they should also apply their own judgment. We are making them aware that they will have to be proactive so that policyholders' interest is protected”, he