Pandemic Pool to manage risks on long-term basis

Pandemic Pool to manage risks on long-term basis

Question: Which organisation has recently (July 2021) urged for a creation of a pandemic pool to manage risks on long-term basis ?
A. CII
B. FICCI
C. SIYAM
D. NASSCOM
Answer- A
Related facts —

  • CII has recently (July 2021) urged for a creation of a pandemic pool to manage risks on long-term basis.
  • Background —
  • It is notable that devastating impact of the COVID-19 crisis has made financial, administrative and social systems fragile and vulnerable.
  • A majority of the pandemic-related risks have been covered by insurance companies in the form of life and health claims.
  • But, the interruptions and halt in the economic machinery could not be covered by insurance companies in most countries as the loss due to the peril of state-imposed lockdown has not been an explicit inclusive clause in the standard insurance contracts.
  • Although overall, insurance companies have been able to cover losses caused by the pandemic, the total capital available with them is less than the capital required to absorb those losses.
  • In the backdrop of above mentioned reasons the CII urges all stakeholders for creation of a pandemic pool to manage risks on long-term basis.
  • CII —
  • The Confederation of Indian Industry is a non-governmental trade association and advocacy group based in New Delhi, India founded in 1895.
  • CII engages business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

Link:
https://www.moneycontrol.com/news/business/economy/cii-calls-for-creation-of-a-pandemic-pool-7189261.html