INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Hyderabad, the 28th December, 2020
F. No. IRDAI/Non-Life Insurance/5/171/2020.—In exercise of the powers conferred by sub section (1) of section 64 ULA of the Insurance Act, 1938, the Authority hereby makes the following notification, namely:-“De-notification of All India Fire Tariff (AIFT), 2001 for certain risks.”
1. This notification issued in terms of Section 64 ULA (1) of the Insurance Act, 1938 provides for de-notification of the rates, advantages and terms and conditions laid down by the Tariff Advisory Committee under Section 64 UC of the said Act which were deemed to continue to be in force until such de-notification.
2. In the year 2006, pursuant to the withdrawal of tariffs by the Tariff Advisory Committee, the Insurance Regulatory and Development Authority of India (“Authority”) in exercise of powers vested in it under Section 14(2)(i) of the IRDA Act, 1999, issued notification Ref. 034/IRDA/De-Tariff/Dec-06 dated 4th December, 2006 that the Tariff general regulations (other than those relating to rating), terms, conditions, clauses, warranties, policy and endorsement wordings applicable to certain classes of business such as Fire, Engineering, Motor, Workmen’s Compensation and other classes of insurances which were then under tariffs shall continue to be followed until further orders.
3. The rates of premium were allowed to be varied subject to compliance with the extant regulatory framework on filing of general insurance products.
4. Now, by virtue of powers vested with the Authority under Section 64 ULA (1) of the Insurance Act,1938 it is hereby notified that the tariff general regulations, terms, conditions, clauses, warranties, policy, add-ons, endorsement wordings and proposal form applicable to the following risks of Fire and Allied Perils insurance business governed by the erstwhile All India Fire Tariff, 2001 under Sections I, II, III, IV, V, VI and VII, and the relevant annexures, as per details given below stand de-notified with effect from 1st April, 2021.
(a) Dwellings: Any Sum Insured
(b) Offices, Hotels, Shops, Industrial/Manufacturing risks, Utilities located outside the compound of industrial/manufacturing risks, Storage risks outside the compound of industrial/manufacturing risks and Tank farms/Gas holders outside the compounds of industrial/manufacturing risks where the total value at risk does not exceed Rs.50 Crores across all asset classes at any one location.
5. Accordingly, it is hereby notified that with effect from 1st April, 2021, Fire and Allied perils covers for the risks mentioned in 4(a) and 4 (b) above shall be subject to the Regulations and/or Guidelines enunciated in this regard by the Authority and amended from time to time.
6. All other risks shall continue to be governed by the erstwhile All India Fire Tariff (AIFT), 2001 until further notification.
Dr. SUBHASH C. KHUNTIA, Chairman