ANNUAL REPORT 2007-08
and Solvency Margin of Insurers) Regulations 2000 describe in detail the method of computation of the Required Solvency Margin. The ratio was monitored on annual basis. Considering the importance of monitoring this ratio on a continuous basis, the Authority has now asked the insurers to submit quarterly returns on solvency margins. The lower level of solvency for pure term products would provide significant relief to the life insurers both under individual products and under group products. This will also help the insurers in launching more pure term products for sufficiently longer periods and at affordable rates.
m) Adjudication of disputes between Insurers and Intermediaries or Insurance Intermediaries
IRDA does not carryout any adjudication in case of disputes between insurers and intermediaries or insurance intermediaries. Insurers were advised to approach the available quasi-judicial or judicial channels like Insurance Ombudsmen. In case of any disputes between insurers and intermediaries the Authority seeks clarifications from the concerned.
n) Supervising the functioning of the Tariff Advisory Committee
With the removal of tariffs the Tariff Advisory Committee has been designated by the Authority as the data repository for maintenance of database for various classes of general insurance. The TAC maintains a web enabled declined lives database for exclusive use of the life insurers. This database has incorporated the suggestions of Life Council and enlarged its scope of use.
Consequent to a demand from insurers, the General Insurance Council and with the approval of Chairman, IRDA, TAC has developed a web search system for stolen insured vehicles. Tariff Advisory Committee has compiled the stolen vehicles database from the data submitted by the insurance companies for the year 2005-06 and stolen vehicles records submitted by insurers through General Insurance council for the period upto 31st March 2007. The users can access the search page by entering user name and password provided by TAC.
The login designated access officer of insurance companies as per names received from General Insurance Council are
provided with the user name and password to access the site
o) Specifying the percentage of the premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f)
The Auithority has not prescribed any percentage of the premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f).
p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the Insurers in the rural and social sector
The obligations as stipulated in the IRDA (Obligations of insurers towards the rural or social sector) Regulations, 2002 lay down the requirements to be complied with by the insurers during the first five years of their operations. In case of the public sector insurers these obligations have been linked to their performance in the year 2001-02 in these sectors. With the amendments which were notified in 2007-08, the obligations of the private insurers’ upto the tenth year of operations has been laid down. Simultaneously, the obligations of the public sector insurers were also revisited.
The obligations of the private insurers are as under:
in respect of a life insurer: commencing from seven per cent of the total policies written direct in the first financial year to twenty percent in the tenth financial year .
in respect of a non-life insurer: commencing from two per cent of total gross premium income written direct in the first financial year to seven per cent from the ninth financial year onwards.
Social sector, in respect of all insurers
Commencing from five thousand lives in the first financial year to fifty five thousand lives in the tenth financial year.
In respect of the existing insurers as on the date of commencement of IRDAAct, 1999 (four non-life insurers and