Make provisions for beleaguered IL&FS exposure: Irdai to insurers

The Insurance Regulatory and Development Authority of India (Irdai) has asked insurers to make provisions for their exposure to the beleaguered IL&FS group because the write-off option is not there.

They have to make provisions because those exposures cannot be written off, Irdai Chairman Shubash Chandra Khuntia said on the sidelines of the release of the handbook on general insurance on Thursday.

The regulator in September last year had asked insurance companies to declare their exposure, both equity and debt, in the IL&FS group.

Moreover, the Irdai chairman had cautioned insurance companies on the risks associated in investing in low-rated debt instruments. The