As mentioned in question 1.1, the RBI has issued several cautionary advisories in the form of press releases (issued on 24 December 2013, 1 February 2017 and 5 December 2017) to users, holders, investors, traders and similar parties that deal in virtual currencies, highlighting the potential financial, operational, legal, customer protection and security-related risks associated with dealing in virtual currencies.

Blockchain came into vogue in 2008 as the underlying technology for Bitcoins, which has been hailed as the world’s first decentralized cryptocurrency. In the words of its creator (who used the pseudonym ‘Satoshi Nakamoto’), Bitcoin was created since there was a need for “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party“1.

A blockchain, as its name suggests, is a virtual chain made of blocks, where each block contains information. Alternatively, it can be described as a digital ledger, where each block of data represents a distinct transaction on the ledger, with the transactions occurring across a decentralized peer-to-peer network. This peer-to-peer network consists of a network of computers (each called a “node”) connected together, which allows the participants in the blockchain to transfer information across the internet without the need to involve any centralised third party.

Influencer Marketing Social networking sites like Instagram, #YouTube, #FaceBook, #Vigo Video, offer a highly interactive and visually rich experience to users. Hence these sites have acquired immense popularity for product promotion. Influencers are the key drivers of this ecosystem. Oxford English Dictionary defines ‘influencer’ as “a person with the ability to influence potential buyers of a product or service by promoting or recommending the items on social media”.

The Interactive Advertising Bureau (“IAB”) defines ‘brand safety’ as “keeping a brand’s reputation safe when it advertises online“. The objective of brand safety is to ensure that the placement of advertisements is such that they are protected against surrounding content that is universally considered to be unsavory. It is intended to prevent potential negative associations with the brand due to particular types of ‘harmful’ content in the vicinity of the ad. For instance, an advertisement for a product such as Bournvita (promoted as a children or family based product), affixed on or displayed in the midst of pornographic content, would work to the disadvantage of the image of the brand. Substantial time and investment is made by brands on projecting a particular type of image, and when their ads are placed in the wrong context, it can damage their image in no time. It takes the consumer mere seconds to make up his/her mind about the brand just by the content it is being associated with, rendering the brandguilty by association. Hence, years of cultivating the “right” image can vanish in the blink of an eye.

(1) E-commerce of food items and groceriesElectronics, books and garments have been the most popular items in the e-commerce segment among Indian consumers. However, COVID-19 seemed to have altered this situation, as e-groceries have taken the centre stage, ever since the pandemic (and the panic shopping!) started in February 2020. As per a press release by Razorpay, one of the largest payment gateways in India, online grocery shopping in India grew by 9% for the first time in just one month.1 The Indian e-grocery stores, such as BigBasket, Grofers and Amazon India Pantry were allowed to continue supplying groceries, and have seen a skyrocketing rise of their app downloads and new customers in each of last months, as per MoEngage, an AI-based customer engagement platform.2 Their businesses are bound to shoot up and this is when their operations have not been smooth due to the lock-down and their sites are consistently slow due to high traffic.A large percent of consumers who now finds online grocery shopping easier, convenient and, more than that, safer, is most likely to continue shopping groceries online post the pandemic situation. This consumer behaviour would lead more businesses to digitise their business operations, especially in the food and beverages industry.

With the world facing trying times due to the coronavirus outbreak and several countries coming to a stand-still. It is apparent for most brands to avoid a hit on their business due to the once-in-a-lifetime pandemic situation. Brands in the aviation, hospitality, travel, oil and gas, restaurants, and the retail sectors appear to have been impacted the most. However, there are a few names in some industries that have witnessed a substantial surge or at least consistency, in the demand and supply of their offerings since the beginning of the pandemic, besides the obvious ones like the food and the healthcare sectors.

Claims Settlement Claims under COVID-19 are required to be handled expeditiously and reviewed by the claims review committee of the Insurer before repudiation. Indemnity based health insurance products providing coverage for the hospitalization treatment costs (including the standalone “Arogya Sanjeevani Policy” health insurance product) are expressly required to cover the costs of hospitalization treatment incurred on account of COVID -19. With respect to unit linked policies maturing by 31 May 2020, where fund value is to be paid in lumpsum, Life Insurers have been permitted to offer settlement options in accordance with the erstwhile R25 of the IRDA (Linked Insurance Products) Regulations 2013, regardless of whether such option exists under the specific product. In terms of such settlement options, Life Insurers are also required to exercise all due diligence and clearly explain the possible risk of continued fluctuation of fund value based on daily NAV, and obtain the clear consent of the policyholder.

1. IRDAI has vide its circular dated March 4, 2020, instructed all insurers providing health insurance policies and covering costs of hospitalization to: review and expeditiously settle all claims with respect to costs of medical expenses incurred during treatment or during quarantine period as per the terms and conditions of the insurance policy; and devise policies to cover the costs of treatment of Covid-19 in order to meet health insurance requirements of various sections.

The Insurance Regulatory and Development Authority of India (hereinafter referred to as ‘IRDAI’) issued a circular on March 04, 20201(hereinafter referred to as ‘Circular’) for claims related to Corona virus. The IRDAI has directed all the health insurance companies to include medical cover for COVID-19 irrespective of the nature of policy held by the consumer.