IRDA lets companies offer credit insurance, but not for securing bank credit

Three months after it banned all forms of credit insurance, the regulator has allowed companies to provide limited trade credit protection. Credit insurance will, however, not be available for securing bank credit .

In September, the Insurance Regulatory and Development Authority (IRDA) banned all forms of credit insurance except for the cover provided by the Export Credit Guarantee Corporation.

The ban came in the wake of large defaults on credit insurance policies issued by state-owned companies.

For more on this, read EconomicTimes