IRDA gives nod for Rs 1,500-crore nuclear liability pool

New Delhi: Insurance sector regulator IRDA has given in-principle approval for setting up of Rs 1,500 crore nuclear liability pool for providing risk cover to nuclear reactors.

"We have given in-principle approval (for setting up nuclear liability pool). There was a demand for covering the reactors. The corpus for it would be Rs 1,500 crore," Insurance Regulatory and Development Authority of India Chairman TS Vijayan told in New Delhi.

"It was thought that this pool would be created within India. So, insurance companies had sought approval from us for creating a separate pool," he said on the sidelines of a function organised by Insurance Brokers Association of India.

Stating that insurance companies are yet to bring in details on how the money would be raised, he said, "I am sure when it comes we will look at it favourably." GIC, the domestic re-insurer, would be the nodal agency for creating a nuclear liability pool with a corpus of Rs 1,500 crore.

The re-insurer is in the process of pricing and underwriting the policy. On fake calls made to customers, he said insurance brokers and other intermediaries have to act on this and spread awareness among the gullible customers so that they are not cheated.

"IRDA, on its part, is making all efforts to safeguard customers from such spurious and fictitious calls by issuing public notice on its website and newspapers," he said.

The regulator has been receiving complaints, through e-mail or letters and its Integrated Grievance Management System, from members of public informing the authority that they are receiving spurious calls from unidentified persons. These callers sometimes claim to be representatives of IRDA and offer insurance policies of different insurance companies with various benefits.

They dupe people by saying that IRDA is distributing bonus to insurance policy holders out of the funds invested by insurance companies with the regulators.

They also claim that the policyholder would receive bonuses being distributed by IRDA if they purchase an insurance policy and wait for a few months after which the bonus would be released by IRDA.

He urged public to remain alert and not fall prey to frauds or scams perpetrated by miscreants who impersonate to be employees or officers of IRDA or other insurance companies.