Increase in Trade Credit Policy Cover Limit from 85% to 90%-- IRDAI

Published on May 24, 2020
Current Context: Insurance Regulatory and Development Authority of India (IRDAI) has recommended an increase in protection against finances granted to the policyholders under Trade Credit Insurance (TCI) from 85% to 90%.
Increase in Trade Credit Policy Cover Limit from 85% to 90%-- IRDAI
  • This recommendation has been made by the committee consisting of 9 members expert panel headed by Atul Sahai, New India Assurance Chairman and MD.
  • Also, the committee proposed protection against finances for MSMEs to be 95%, in order to grant relief in the event of loss situation.
  • Other recommendations include the creation of a Buyer Default Database with Insurance Information Bureau (IIB) in order to keep a track on defaulters. Also RBI has been asked to recognize credit insurance products as risk mitigation tools for the banks to make them eligible for capital relief.
  • Static Part: 
    • HQ of IRDAI: Hyderabad, Telangana
    • Chairman of IRDAI: Dr Subhash Chandra Khuntia

Question: 

Q.1 Recently, IRDAI has recommended an increase in protection against finances granted to the policyholders under Trade Credit Insurance (TCI) from 85% to ____%?
a. 87%
b. 90%
c. 92%
d. 95%
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