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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.
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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
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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