Industrial All Risks (IAR) Policy

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• Jll N;•n• INSURANCE REGULATORY AND inlai DEVELOPMENT AUTHORITY OF INDIA CIRCULAR No- IRDA/NL/CIR/F&U/025/2016 Date: 10.02.2016 To All General Insurance Companies underwriting Industrial All Risk (IAR) Policy Re: Industrial All Risks (IAR) Policy It has come to the notice of the Authority that some general insurers are issuing IAR policies to ineligible and non-industrial risks. The Authority, vide circular no- 019/IRDA/NL/F&U/Oct-08 dated 06.11.2008 had removed the requirements of minimum sum insured, brought flexibility in deductibles and allowed add-on covers to be filed. It has also been brought to the notice that these relaxations are being misused by some insurers. Selling IAR policies to risks other than industrial risks will be considered to be non- compliance. Therefore, all insurers are advised to conduct detailed risk assessment by the engineers and collect the claims experience etc before marketing the policy under IAR tariff. The insurers may accordingly advise the operating offices for compliance. Sr. Joint Director ~ 'llft~ 'qcR, cftoo "ffi'I, o:tl!A(o:tlll, ~-500 004. ~ t: 91-040-2338 1100, ~: 91-040-6682 3334 t-iITT: irda@irda.gov.in ito:t-: www.irda.gov.in Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail: irda@irda.gov.in Web.: www.irda.gov.in