Insurance Regulatory and Development Authority issued new guidelines
Q. IRDAI has said the insurer should assess the credit risk of any buyer contributing more than what percent of the total turnover of the policy holder?- Published on 11 Mar 16a. 2%
b. 3%
c. 4%
d. 5%
ANSWER: 2%
IRDAI has said on 10th March 2016 that the insurer should assess the credit risk of the buyer which adds more than 2% of the total turnover of policy holders while revising guidelines with respect to the credit insurance business. The regulatory body has revisited 2010 guidelines which regulate the credit insurance market to give a much needed boost to growth of the credit insurance market. Listing conditions for trade credit insurance, it has said that trade credit insurance policy should not be issued to lenders, financiers or banks.
