IRDAI Corner

IRDAI Order No. 99-Final Decision in compliance with Madras HC order in WPs 6484 and 6492 of 2021

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Order of the Insurance Regulatory and Development Authority of India issued in compliance with the direction of the Hon'ble Madras High Court Order in WP Nos. 6484 & 6492 of 2021 with regard to representation dated 04.12.2020 to formulate a viable policy to exempt buses of educational institutions from payment of insurance premium or proportionately reduce the premium amounts, for the closure period on account of Covid-19 pandemic.

1. The Govt. of India imposed complete lock-down in the country from 25th March, 2020 to 14th April, 2020 and extended till 31st May, 2020 to curtail the spread of the Covid-19 pandemic. During the lockdown period the movement of vehicles was restricted and the educational institutions remained closed. Some of the states extended the closure of educational institutions for a longer duration.

2. In view of the restricted movement of vehicles during the lock down period, M/s Om Sri Vivekananda Educational Trust represented to the Insurance Regulatory and Development Authority of India (hereinafter referred to as IRDAI or the Authority) vide letter dated 04.12.2020 to formulate a viable policy exempting the buses of educational institutions from payment of insurance premium for the closure period of the educational institution or alternatively, to proportionately reduce the premium amount for the closure period.

3. Subsequently, the Association of Management of Coimbatore Anna University Affiliated Colleges and M/s Om Sri Vivekananda Educational Trust filed Writ Petitions nos. 6484 of 2021 and 6492 of 2021 respectively before the Hon'ble Madras High Court seeking directions to IRDAI to formulate a viable policy exempting buses of educational institutions from payment of insurance premium for the closure period of the educational institutions, or alternatively, to proportionately reduce the premium amount for the closure period. In both petitions, IRDAI was arrayed as First Respondent.