ANNUAL REPORT 2007-08
This brings in more transparency and protects the policyholders.
Specifying requisite qualifications, code of
conduct and practical training for intermediaries or
insurance intermediaries and agents
The code of conduct regarding the professional and ethical requirements for conduct of their professional work is specified in Chapter VI of the IRDA Regulations for Surveyors and Loss Assessors, 2000. They should strive for objectivity in professional and business judgment while behaving ethically and with integrity in their professional pursuit acting impartially and complying with due diligence, care and skill with regard to technical and professional standards expected of them.
The Government of India and the Authority, have established Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) in order to promote self-regulation and professionalism amongst the surveyors as a part of further reforms in the insurance sector. The elections for putting in place the first elected council of the Institute (IIISLA), were held during 2007- 08 and the affairs of he Institute were formally handed over by IRDA to the first elected council on 15.12.2007. The Council is expected to meet the mandate to establish the necessary infrastructure, to inculcate professionalism, discipline, and disseminate information relating to the profession of surveyors and loss assessors amongst its members. Both, the IRDA and IIISLA Institute are making efforts to ensure that the Institute develops the profession further and take on responsibilities envisaged in its charter.
Specifying the code of conduct for surveyors and
The IRDA, as mandated by the Govt. of India, has promoted the establishment of the Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) in order to promote professionalism amongst surveyors. The Promotee Council of IIISLA has handed over the functioning of the Institute to the First Council that consists of elected as well as nominated members.
Promoting efficiency in the conduct of insurance
The tariffs for fire, engineering and motor were withdrawn with effect from 1st January 2007. This resulted in the end of cross– subsidization era wherein profitable fire and engineering portfolios supported loss making motor, health and marine cargo insurances. This was followed by complete relaxation of premium rates with effect from 1.1.2008. There was apprehension that the statutory motor third party cover would be denied to the policyholders. The Authority has been taking cognizance of complaints received regarding denial of third party cover and has resolved the complaints by taking up with the concerned insurers. The initiatives taken by the Authority in regulating the third party motor premium have been upheld by several High Courts.
The Authority’s directives to the general insurers to participate in motor third party pooling arrangement for commercial vehicles segment has resulted in availability of third party cover for the policyholders as well as an increase in such covers. The Pool has been set up with state of the art hardware and software. The Authority has stressed the need for collection and collation of qualitative data by the insurers especially in the area of motor insurance.
The Code of Conduct applicable for Surveyors and Loss Assessors in respect of their professional work is embodied in Chapter VI of IRDARegulations. Assessors. Surveyors shall behave ethically and with integrity in their professional pursuits; shall strive for objectivity in professional and business judgment; acting impartially and complying with due diligence, care and skill in regard to technical and professional standards expected of them.
The Authority has also been taking initiatives in leading the life insurance council and the general insurance council towards becoming self regulatory organizations. The Micro- insurance regulations put in place by the Authority have resulted in the mainstream general insurance companies submitting micro-insurance products to the Authority for approval. This augurs well for the low-income population as they can get the existing insurance products at affordable premium. The Authority has constituted a Committee to look into issues relating to Health Insurance for of Senior Citizens in procuring health insurance.