Insurance Regulatory and Development Authority of India
Exposure draft of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) (First Amendment) Regulations, 2022
1. In exercise of the powers conferred by clauses (y), (z), (za) and (zab) of subsection (2) of section 114A read with Sections 64V and 64VA of the Insurance Act, 1938, (4 of 1938) and section 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Authority notified the IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016.
2. It is proposed to amend the said Regulations with the objective of facilitating the insurers in efficient utilization of capital and hence to increase insurance penetration in the area of Crop Insurance Business. The following are the amendments being contemplated:
a. Premiums receivable relating to State/Central Government sponsored schemes, to the extent they are not realized within a period of 365 days shall be placed with value zero in respect of Crop Insurance Business.
b. Factor – A and Factor-B for calculation of Required Solvency Margin (RSM) in respect of Crop Insurance Business are reduced to 0.50.
3. The exposures draft of the IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) (First Amendment) Regulations, 2022 is as per Annexure A2 (attached herewith).
4. The views/comments of the various stakeholders and the general public are invited on the exposure draft. The comments/suggestions, if any, may be sent on or before 11th November, 2022 to actuarial-policy@irdai.gov.in with a copy to c.srinivasakumar@irdai.gov.in in the format as per Annexure B2 (attached herewith).
Annexure-A2
Draft Regulation
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Insurance Regulatory and Development Authority of India (Actuarial Report and Abstract for Life Insurance Business) (First Amendment) Regulations, 2022.
F No. XXX – In exercise of the powers conferred by clauses (g), (y), (z) of subsection (2) of Section 114A read with sections 13, 64V and 64VA of the Insurance Act, 1938 (4 of 1938) and section 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations namely: –
1. Short title and commencement
a. These regulations may be called the Insurance Regulatory and Development Authority of India (Actuarial Report and Abstract for Life Insurance Business) (First Amendment) Regulations, 2022.
b. They shall come into force on the date of their publication in the Official Gazette.
2. Regulation 4(B)(d) – Form KT1:
a. The following row is inserted in Required Solvency Margin (RSM) Factors table after row 1.1.2.4. Sub-Class-Health:
|
Type |
First Factor | Second Factor |
| 1.1.2.5- Pradhan Mantri Jeevan Jyoti Bima Yojana | 3% | 0.05% |
b. In the Required Solvency Margin (RSM) Factors table, the first factor for “Linked business- Without guarantees” under Type: Participating and Non-participating; Category: Linked; Division: Individual and Group; Sub-Class: Life, General Annuity, Pension and Health shall be substituted by 0.6% in the place of 0.8%.
Chairman
Annexure- B2
Format for providing Comments / Suggestions on Exposure Draft of IRDAI (Actuarial Report and Abstract for Life Insurance Business) (First Amendment) Regulations, 2022
Name:
Organization:
Date:
| Regulation | Regulation Number | Comments / Change proposed | Reasons /Rationale |
