Insurance Regulatory
and Development Authority (Obligations of Insurance to Rural or Social Sectors)
(Third Amendment) Regulations, 2008
In exercise of
the powers conferred by section 32C read with section 32B of the Insurance Act,
1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory
Committee, hereby makes the following Regulations to further amend the
Insurance Regulatory and Development Authority (Obligations of Insurers to Rural
or Social Sectors) Regulations, 2002, notified on October 17, 2002 in the
Gazette of India F. No. IRDA/Reg/10/2002 and amended on December 26, 2005 in
the Gazette of India F. No. IRDA/Reg/4/2005/37, namely :—
1. Short
title and commencement.—(1) These regulations may be called the Insurance Regulatory and
Development Authority (Obligations of Insurers to Rural or Social Sectors)
(Third Amendment) Regulations, 2008.
(2)
They shall come into force on the date of their publication in the Official
Gazette.
(3)
In the Insurance Regulatory and Development Authority (Obligations of Insurers
to Rural or Social Sectors) Regulations, 2002,
(i) The third proviso to Regulation 3 shall
stand deleted.
(ii) After Regulation 3A as inserted by the
Insurance Regulatory and Development Authority (Obligation of Insurers to Rural
or Social Sectors) (Amendment) Regulations, 2005, the following Regulation 3B
shall be added :
“3B.
Obligations after the Sixth Financial Year.— (l)(a) Rural Sector
(i) in
respect of a life insurer,
(I) eighteen
per cent in the seventh financial year;
(II) nineteen
per cent in the eighth and ninth financial years;
(III) twenty
per cent in the tenth financial year,
of the total
policies written direct in that year;
(ii) in
respect of a general insurer,
(I) five
per cent in the seventh financial year;
(II) six
per cent in the eighth financial year;
(III) seven per cent in the ninth and tenth financial years;
of the total
gross premium income written direct in that year.
(b) Social
sector
(i) in
respect of all insurers,
(I) twenty
five thousand lives in the seventh financial year;
(II) thirty
five thousand lives in the eighth financial year;
(III) forty
five thousand lives in the ninth financial year;
(IV) fifty five thousand lives in the tenth financial year.
(2) The
obligations of the insurers towards the rural and social sectors for the tenth
financial year shall also be applicable in respect of the financial years
thereafter.”
(iii) After Regulation 4, the following
Regulation 4A shall be added:—
“4A. Obligations
of the existing insurers for the financial years 2007-08 to 2009-10. (1) The obligations of the
existing insurers as on the date of the commencement of the Insurance
Regulatory and Development Authority Act, 1999 towards the rural and social sectors
from the financial year 2007-08 to the financial year 2009-10 are as under :—
(a) Life Insurance Corporation of India,—
(i) Rural
Sector,
(I) twenty four per cent in the financial year 2007-08;
(II) twenty five per cent in the financial
years 2008-09 and 2009-10,
of the total
policies written direct in that year;
(ii) Social
Sector,
(I) Twenty lakh lives in the financial years
2007-08, 2008-09 and 2009-10.
(b) General Insurers,
(i) Rural
Sector,—
(I) six per cent in the financial year
2007-08;
(II) seven per cent in the financial years
2008-09 and 2009-10,
of the total
gross premium income written direct in that year;
(ii) Social
Sector,—
(I) for the financial year 2007-08 the
average of the number of lives covered by the respective insurer in the social
sector from the financial years 2002-03 to 2004-05 or 5.50 lakh lives,
whichever is higher ;
(II) for the financial year 2008-09, the
obligations of the existing insurers shall increase by 10 per cent over the
number of persons prescribed for the financial year 2007-08 ;
(III) for the financial year 2009-10, the
obligations of the existing insurers shall increase by 10 per cent over the
number of persons prescribed for the financial year 2008-09.
(2) The
obligations of the insurers, towards the rural and the social sectors for the
financial year 2009-10 shall also be applicable in the financial years
thereafter”.
(iv) After Regulation 4A, the following
Regulations 5, 6 and 7 shall be added :
“5. Notes
applicable to Regulations 3, 3A, 3B, 4 and 4A. —(1) The term ‘lives’
referred to in Regulations 3, 3A, 3B and 4A in respect of all insurers refers
to human lives insured as at the end of each financial year.
(2)
Re-insurance premium shall not be included while calculating the obligations of
the insurers in respect of the rural and social sectors.
(3) The
Authority may prescribe or revise the obligations as specified in these
Regulations from time to time.
6. Compliance.—(1) For the purpose of
these Regulations, compliance with the obligations towards the rural sector in
respect of both general and life companies shall be based on the sale of
products conforming to the proviso that all such contracts meet the stipulation
as to the minimum amount of cover as laid down in Schedules I and II of the
Insurance Regulatory and Development Authority (Micro Insurance) Regulations,
2005.
(2) For the
purpose of these Regulations, compliance with the obligations towards the
social sector in respect of both general and life companies shall be based on
the sale of products conforming to the proviso that all such contracts meet the
stipulations as to the cover laid down in Schedules I and II of Insurance
Regulatory and Development Authority (Micro Insurance) Regulations, 2005.
7. Submission of returns.—Every insurer shall submit a return, as part of the
financial returns to be submitted under the Insurance Regulatory and
Development Authority (Preparation of Financial Statements and Auditors Report
of Insurance Companies) Regulations, 2002, the rural and social sector
obligations specified under these regulations and disclose the level of
compliance achieved during the said year. Such reporting shall form part of the
‘Notes to the Accounts’.”