Kathmandu. The Insurance Regulator of India (IBN) is set to set up an Insured Awareness and Protection Fund worth Rs 8 billion for insured education and protection.
The Insurance Regulatory and Development Authority (IRDA) is preparing to establish and operate such a fund under the ‘Sabka Bima Sabki Raksha’ scheme. The provisions of the Insurance Act have made provision for the establishment of a fund for insured awareness, protection of insured interests and other initiatives targeted at the insured.
Grants and donations from the central government, funds received from NEA and other sources, amount for penalty imposed on insurers and other amounts as determined by regulators will be deposited in this fund. The Authority shall bring the amount deposited in such fund for the warning, protection and related purposes of the insured.
The proposed fund mobilization procedure will prepare a structural and permanent framework for insurance awareness, strengthening protection of insured interests, strengthening the grievance redressal system and emphasizing the use of technology for better service to the insured.
The interest and income from the fund will be used for nationwide insurance, education and awareness, early warning distribution during disasters and the development of a system to find out the unclaimed amount.
The NRA has also proposed a fund management committee for the operation and management of the fund.
