st FINCLUSION Newsletter No.85 (dated 1 April 2015). Contact us at [email protected] IFMR Investments is pleased to present a monthly update of regulations prescribed by IRDA for Insurance companies for the month of March 2015. The monthly update is divided into three sections: 1) Updates for all Insurers 2) Updates specific to Life Insurance Companies 3) Updates specific to General Insurance Companies. Our ninth monthly update covering regulatory changes during March 2015 is given below: Update for all Insurance Companies 1) Guidelines on the Fee for granting written acknowledgement of the receipt of Notice of Assignment or Transfer of a policy of Insurance 1) An Insurer is permitted to collect the following fee for granting a written acknowledgement of the receipt of notice of assignment or transfer. (a) In respect of those policies that are issued in electronic form as specified by the regulations under the provisions of Section 14 (2) of the Insurance Act as modified from time to time, the fee collected shall not exceed Rs 50 (Rupees fifty only) inclusive of all applicable taxes. (b) In respect of policies issued other than those referred under Clause (1) (a) above the fee collected shall not exceed Rs 100 (Rupees Hundred Only) inclusive of all applicable taxes. (2) No other fee shall be collected for rendering any other services such as, recording the fact of the transfer or assignment or any other services connected to the assignment or transfer prescribed in Section 38 of the Insurance Act as modified from time to time. Please refer to the link for complete details. 2) The Insurance Laws (Amendment) Act, 2015 IRDA has published The Insurance Laws (Amendment) Act, 2015. Please refer to the circular for complete details. st FINCLUSION Newsletter No.85 (dated 1 April 2015). Contact us at [email protected] 3) Exposure Draft of Guidelines on Participation in ETASS In order to bring in transparency and efficiency in the administration, accounting and settlement of the Coinsurance and Reinsurance transactions, IRDA had initiated the setting up of the “Electronic Transaction Administration and Settlement System” which is the clearing house system for all the reinsurance and coinsurance transactions. The development of ETASS is currently underway and the Coinsurance Module for Fire LOB is expected to go into production in a short period of time. The General Insurers, Reinsurance Brokers and Reinsurers will have to participate in the ETASS system for coinsurance and reinsurance business they transact. The Authority intends to provide the regulatory framework governing the various aspects of conduct of ETASS system. In this connection an exposure draft is being released. Update for all Life Insurance Companies: 4) Guidelines for charging the fee from the holder of a policy of life insurance for Registering Cancellation or Change of Nomination The following guidelines have been issued by IRDA: 1) Every Life Insurer is permitted to collect the following fee for registering the cancellation or change of the nomination by the holder of a policy of Life Insurance on his own life. (a) In respect of those policies that are issued in electronic form as specified by the regulations under the provisions of Section 14 (2) of the Act, the fee collected shall not exceed Rs 50 (Rupees fifty only) inclusive of all applicable taxes. (b) In respect of policies other than those referred under Clause (1) (a) above, the fee collected shall not exceed Rs 100 (Rupees Hundred Only) inclusive of all applicable taxes. 2) No fee, other than what has been prescribed in Clause - 1 above, shall be collected for registering a nomination either at the time of effecting a policy of life insurance or at any time thereafter or towards any other services relating to nomination contained in Section 39 of the Act. 3) The nomination effected by a policyholder at the inception of the policy through the proposal form and recorded by the Insurer on the face of a policy document shall be considered as a valid acknowledgement by the Insurer. These Guidelines are effective from 01st April, 2015 and are issued under Section 14 (2) of IRDA Act, 1999 st FINCLUSION Newsletter No.85 (dated 1 April 2015). Contact us at [email protected] Update for all General Insurance Companies: 5) IRDAI on Premium Rates for Motor Third Party Liability Insurance IRDA in exercise of the powers vested in the Authority under Section 14 (2) (i) of the IRDA Act, 1999, the Authority has notified the premium rates applicable to Motor Third Party Liability Insurance covers with effect from 01st April 2015 as given in the Annexure “A”. Considering the mandatory nature of motor third party insurance, insurers are advised to ensure that motor third party insurance is made available at their underwriting offices and that requests for insurance are processed expeditiously and policies are issued promptly. The Authority will treat any complaint of non-availability of insurance or use of methods to deny/delay the client seeking insurance cover, seriously. Insurers are not permitted to cancel the current insurance policies and issue fresh policies to effect new premium rates. This notification as well as enclosed schedule of premium rates shall be prominently displayed on the Notice Board of every underwriting office of the insurers where it can be viewed by the public Please refer to the circular for complete details Details of the notifications covered in this update are given below: Date Notification Applicability Topic Number 31st March 2015 IRDA/NL/NTFN/M General Insurers IRDAI on OTP/054/03/2015 Premium Rates for Motor Third Party Liability Insurance 31st March 2015 IRDA/LIFE/CIR/G DL/057/03/2015 All Insurers Guidelines on the Fee for granting written acknowledgeme nt of the receipt Link to document Click here to view Click here to view st FINCLUSION Newsletter No.85 (dated 1 April 2015). Contact us at [email protected] of Notice of Assignment or Transfer of a policy of Insurance Guidelines for Click here to view charging the fee from the holder of a policy of life insurance for Registering Cancellation or Change of Nomination 31st March 2015 IRDA/LIFE/CIR/G DL/058/03/2015 Life Insurers 23rd March 2015 Amendment All Insurers The Insurance Click here to view Laws (Amendment) Act, 2015 16th March 2015 Exposure Draft All Insurers Exposure Draft Click here to view of Guidelines on Participation in ETASS
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