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Photo; iStock

Covid impact: Irdai recommends extension of 2 yrs for validity of sandbox regulations

The validity of the Regulatory Sandbox Regulations, 2019, which was for two years, expires on 25 July 2021

The Insurance Regulatory and Development Authority of India (Irdai) on Tuesday recommended the extension of the period of its sandbox regulations by two years, saying experiments for such products could not be completed because of covid.

The validity of the Irdai (Regulatory Sandbox) Regulations, 2019, expires on 25 July 2021 and the proposal, if accepted, would take this to July 2023. The sandbox regulations aimed to create an environment for insurtech and fintech companies to carry out innovations in the insurance space. The experiments were initially allowed for six months under the regulations.

“It is observed that most of the proposals could not be completed within six months because of covid. They were, therefore, granted extension by another six months to complete the experiment," Irdai said on Tuesday, adding that it is recommending the period of validity of the regulations be extended by two years.

The move was welcomed by stakeholders. “It’s a welcome move, as it will help companies come up with more interesting and useful products. It empowers companies to innovate further. We will take this opportunity to bring in more simple and relevant products," said Adarsh Agarwal of Digit General Insurance Ltd.

Irdai had first invited applications under the sandbox regulations from 15 September to 14 October 2019. The applications covered concepts such as wellness, group insurance, usage-based insurance and loyalty/rewards programmes.

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