3rd Amendment in Insurance Regulatory and Development Authority (Obligations of Insurance to Rural or Social Sectors) Regulations, 2008
NOTIFICATION F. NO. IRDA/REG/1/42/2008, DATED 3-1-2008
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
(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’.”
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