IRDAI notifies the Obligatory Cession for FY 2023-24
The notification states that the percentage cession of the sum insured on each General Insurance Policy to be reinsured with the Indian Re-insurer(s) shall be 4% in respect of insurance attaching during the financial year beginning from 1st April, 2023, to 31st March, 2024. The exception to this will be the terrorism premium and premium ceded to Nuclear pool wherein it would be made ‘NIL’. There would be no limit on the sum insured applicable for the cessions made from 1st April, 2023, to 31st March, 2024.
Clarification on classification of shares issued by virtue of demerger to Insurance Companies
Investment in equity shares and preference shares in Resulting Investee Company(s) after a demerger shall be classified as “Approved investment” or “Other Investment”, for initial two financial years as per IRDAI Investment Master Circular dated October 27, 2022.
Guidelines on Insurance claims of victims of Subsidence and Landslides in the calamity affected areas in the State of Uttarakhand
The general insurers are advised to initiate immediate steps for quick registration and disposal of
claims.
The IRDAI issues a Circular on Application Process for appointment of an Appointed Actuary
The Circular states that the insurer must submit an application for appointment Appointed Actuary. The format of the application is Form IRDAI-AA-2 and is attached to the present Circular. The application should be accompanied by the extract of the Board Resolution and a copy of the Appointment Letter.
Guidelines on issuance of File Reference Numbers (FRN) to Cross Border Reinsurers(CBR)
The insurers, who wish to place re-insurance business with CBR, shall file an online application with the Authority at https://cbr.irdai.gov.in/login.aspx (CBR Portal), for allotment of FRN to CBRs under the category of either ‘Eligible CBR’ or ‘Non-Eligible CBR’.
IRDAI issues notification on submission of reinsurance returns
The Insurance Regulatory and Development Authority of India (IDRAI) has issued a notification regarding the submission of reinsurance returns. This notification was issued on 3rd January, 2023. The present notification was in reference to the circular on submission of Reinsurance Returns and Programme dated 15th January, 2019. The notification contemplates amendments in the returns under the previous circular.
IRDAI issues Guidelines on the issuance of File Reference Numbers (FRN) to Cross Border Reinsurers
The Insurance Regulatory Development Authority of India, (IRDAI) has issued Guidelines on the issuance of File Reference Numbers (FRN) to Cross Border Reinsurers. The Guidelines aim at promoting ease of doing business and facilitating further development of the insurance industry.
IRDAI clarification regarding Reinsurance Treaty Agreements covering Fire and Engineering Lines of Business
The Authority hereby advises all Non-life insurers and reinsurers to ensure that IIB published broad-occupancy market average burning costs rates for Fire and Engineering risks are not embedded as minimum rates within Reinsurance Treaty Agreements applying to the Indian Market for the risks commencing on and after 1st April 2023.
Insurance Regulatory and Development Authority of India (Regulatory Sandbox) (Amendment) Regulations, 2022
The objectives of these Regulations are to amend the Insurance Regulatory and Development Authority of India (Regulatory Sandbox) Regulations, 2019 to increase the experimental period of the Regulatory Sandbox from existing six (6) months to up to 36 months.
Insurance Regulatory and Development Authority of India (Registration of Indian Insurance Companies) Regulations, 2022
As per the regulation, no company or co-operative society shall be incorporated in India with a name that contains words ‘insurance’ or ‘assurance’ or ‘reinsurance’ without obtaining a No-objection Certificate from the Authority.
