Document background
The Insurance Pooling Agreement is essential when multiple insurance companies in India seek to collectively manage and share specific categories of risks that may be too large or complex for individual insurers to handle alone. This document becomes particularly relevant for specialized insurance sectors such as nuclear, aviation, or catastrophic risks. The agreement, governed by Indian insurance laws and IRDAI regulations, establishes the operational framework for risk sharing, premium collection, claims administration, and pool governance. It includes detailed provisions for financial management, member responsibilities, and compliance requirements, making it a crucial instrument for collaborative risk management in the Indian insurance market. The Insurance Pooling Agreement typically incorporates mechanisms for both routine operations and extraordinary situations, ensuring stable and efficient pool management while protecting all participants' interests.
