A ten-member working group has been constituted by the Insurance Regulatory and Development Authority of India (IRDAI) to suggest segment-wise ways and means to improve loss prevention and loss minimisation in the general insurance industry.
The move is aimed at all stakeholders working together towards a common end on a common platform.
Though a crucial aspect for the insurance industry, loss prevention and loss minimisation measures have remained very company-specific, sources among insurers said.
There may be considerable overlap in the way companies approach the issue, yet there is little in terms of knowledge-sharing, something that the working group sought to formalise.
IRDAI Executive Director (General) M.Pulla Rao, in the order constituting the working group on Thursday, said steps for loss prevention and loss mitigation not only helped the insured and the insurer but also help mitigate economic losses in a larger context.
While loss prevention and loss minimisation are aspects insurers are concerned with right from the time a risk is assessed to the time a claim occurs, there is a need to synergise the activities of the various stakeholders involved in these activities for the benefit of all concerned, he said.
Thus, research and education in this area ought to be encouraged. Collaboration with the government and various government agencies in this regard will benefit the society at large, he said.
The working group is also expected to evaluate current practices followed by the insurance industry in the area of loss prevention and loss minimisation. It would be doing this to suggest approach to synergise the activities of the various stakeholders involved in order to ensure better loss prevention and loss minimisation.
The group, given three months to submit its report, will also give recommendations for promoting research, education and services in the area. IRDAI Member (Non-Life) T. L. Alamelu will chair the group whose members include National Insurance Academy Director G.Srinivasan; General Insurance Council Secretary General M.Nagaraja Sarma; Insurance Brokers Association of India Vice President S.K.Jain as well as representatives from both public and private general insurers.
