Insurance Regulatory and Development Authority of India
EXPOSURE DRAFT INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (REGULATORY SANDBOX) (AMENDMENT) REGULATIONS, 2022
1. The Authority has notified the IRDAI (Regulatory Sandbox) Regulations, 2019 with a validity of two years to facilitate innovation in products or solutions proposed to be offered by the insurance companies and other players for the benefit of policyholders. Subsequently, the Authority has extended the validity period of the said Regulations for a further period of two years up to 25th July, 2023.
2. Based on the experience of 2 cohorts of Regulatory Sandbox and stake holder’s feedback, the department has observed the following limitations:
(i) Validity – as stated under para 1 IRDAI (Regulatory Sandbox) Regulations, 2019 has a validity clause of four years.
(ii) Experiment period – Regulation 6(2) of Sandbox Regulations permits the applicant to experiment the ideas for a period of 6 months (Extendable by another 6 months only).
3. In view of the above, the draft IRDAI (Regulatory Sandbox) (Amendment) Regulations, 2022 is prepared with an objective to
(i) remove the limited validity period
(ii) increase the experimental period of the Regulatory Sandbox from the existing six (6) months to up to 36 months
(iii) The Chairperson may be authorized to issue guidelines, if necessary, based on the outcome of Sandbox proposals.
4. The Exposure Draft Insurance Regulatory and Development Authority of India (Regulatory Sandbox) (Amendment) Regulations, 2022, has been attached as Annexure – A.
5. You are requested to offer your comments, suggestions on the proposed modifications for further examination at our end. The comments, suggestions may be sent in the attached format (Annexure- B) by 25th August , 2022 to insurtech-mission@irdai.gov.in with a copy to deepakkg@irdai.gov.in.
Annexure- A
Draft IRDAI (Regulatory Sandbox) (Amendment) Regulations, 2022
F.No.IRDAI/Reg/ / /2022 – In exercise of the powers conferred by clause (zd) of sub-section 2 of section 114A of Insurance Act,1938 read with section 14(2)(e) and 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:-
CHAPTER I
1. Short Title and commencement:
1.1 These Regulations may be called the Insurance Regulatory and Development Authority of India (Regulatory Sandbox) (Amendment) Regulations, 2022.
1.2 These Regulations shall come into force on the date of their publication in the Official Gazette.
2. Objective Clause: The objectives of these Regulations are to amend the Insurance Regulatory and Development Authority of India (Sandbox Regulations), 2019 to:
(i) remove limited validity period
(ii) increase the experimental period of the Regulatory Sandbox from existing six (6) months to up to 36 months
(iii) The Chairperson shall be authorized to issue guidelines, if necessary, based on the outcome of Sandbox proposals.
3. In Regulation 1, sub regulation (3) shall be omitted.
4. In Regulation 5, sub regulation (3) and the explanation shall be omitted.
5. In Regulation 6, in sub regulation (2), for the word and figure “a period of 6 months”, the word and figure “an experiment period of up to 36 months” shall be substituted.
6. In Regulation 8, in sub regulation (1), for the word and figure “6 months”, the word “experimental period” shall be substituted.
7. In Regulation 12, sub regulation (2) shall be omitted.
8. In Regulation 13, in sub regulation (3) the words “issuance of new guidelines based on the outcome of Sandbox proposals” shall be inserted after the words “issues pertaining to the Regulatory Sandbox,”.
Annexure- B
Format for providing Comments / Suggestions on Exposure draft EXPOSURE DRAFT INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (REGULATORY SANDBOX) (AMENDMENT) REGULATIONS, 2022
Name (Mr/Ms.): _______________________________________________
Date:
[ Note: 1. It is suggested that ONE Page may be used for one change.
2. This will enable us to group all the suggestions and take a decision on the changes suggested.]
| Regulation No. | Sub-Regulation No./ Para Number | Comments / Change proposed | Reasons /Rationale |
