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22 December 2020
The Insurance Regulatory and Development Authority of India (IRDAI) has powers under the Insurance Act 1938 to inspect and investigate insurers and insurance intermediaries. Under Section 33 of the Insurance Act, insurers and insurance intermediaries must provide the IRDAI with access to books of accounts, registers and other documents in their custody or power and furnish any statements and information sought. Typically, certain details are sought in advance of on-site inspections of insurers and insurance intermediaries. With regard to the submission of pre-inspection data requirements, the IRDAI noted that in certain cases there was delay in providing the data sought.
To address these concerns, the IRDAI issued and invited comments from various stakeholders on:
Following the comments received, on 24 November 2020 the IRDAI issued the IRDAI (Minimum Information Required for Investigation and Inspection) Regulations 2020 (the regulations). The regulations stipulate the minimum information and records that insurers, intermediaries and insurance intermediaries are required to maintain and the general norms applicable thereto.
This article provides a summary of the key requirements stipulated under the regulations.
Insurers are required to keep a record of all:
Insurers are required to also keep a record of:
Insurers are required to maintain cash books and disbursement books with supporting documents and record investments separately for:
Insurers are required to also keep proper records of staff attendance in any form.
Insurers issuing documents for evidencing assumption of risk are required to:
Intermediaries and insurance intermediaries are required to keep a record of all employees specifying, among other things:
Intermediaries and insurance intermediaries are required to also maintain a record of:
Insurers, intermediaries and insurance intermediaries are required to have in place an appropriate policy that must be approved by their board of directors on the maintenance of records and the destruction of old records, both in physical and electronic form, in accordance with the regulations.
In addition to the requirements applicable to insurers, intermediaries and insurance intermediaries, the regulations stipulate the following requirements for information, data, documents and records that apply to all entities:
The regulations will come into force six months after their publication in the Official Gazette (ie, in May 2021). Going forward, with the notification of the regulations and express guidance being issued on the minimum information and records required to be in place at all times, insurers and insurance intermediaries will be required to be able to provide prompt and ready access to these details when sought.
For further information on this topic please contact Celia Jenkins, Priya Misra or Swathi Ramakrishnan at Tuli & Co by telephone (+91 11 2464 0906) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The Tuli & Co website can be accessed at www.tuli.biz.
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