INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
GANDHINAGAR, the 12th January, 2023
International Financial Services Centres Authority (Maintenance of Insurance Records and Submission of Requisite Information for Investigation and Inspection) Regulations, 2022
IFSCA/2022-23/GN/REG031.—In exercise of the powers conferred by Section 28 read with Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, and clause (ga), (j) of sub -section (2) of section 114A read with clause (c) of sub-section (1) of section 14 and sub-section (7) of section 33 of the Insurance Act, 1938, the International Financial Services Centres Authority hereby makes the following regulations namely:-
1. Short title, commencement and applicability –
(1) These regulations may be called the International Financial Services Centres Authority (Maintenance of Insurance Records and Submission of Requisite Information for Investigation and Inspection) Regulations, 2022.
(2) They shall come into force from the date of their publication in the Official Gazette.
(3) Unless otherwise specified herein, these regulations are applicable to all International Financial Services Centres Insurance Offices (IIOs) and International Financial Service Centre Insurance Intermediary Offices (IIIOs).
2. Objective:
The objective of these regulations is to specify minimum information that is required to be maintained by an
IIO and IIIO, for the purposes of investigation and inspection, under section 33 of the Insurance Act, 1938.
3. Definitions –
(1) In these regulations, unless the context otherwise requires –
(a) ‘Act’ means the International Financial Services Centres Authority Act, 2019 (50 of 2019);
(b) ‘Authority’ or ‘IFSCA’ means the International Financial Services Centres Authority established under sub-section (1) of Section 4 of the Act;
(c) ‘board’ means the board of directors of an IIO or IIIO, or the Board of the Parent Entity of an IIO or IIIO, as the case may be, in case the IIO or IIIO is in unincorporated form;
(d) “electronic form” shall have the same meaning as assigned to it under clause (r) of sub-section 1 of section 2 of the Information Technology Act, 2000;
(e) “International Financial Service Centre Insurance Office” or ‘IIO’ shall have the meaning as assigned to it under clause (k) of sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021;
(f) “International Financial Service Centre Insurance Intermediary Office” or ‘IIIO’ shall have the meaning as assigned to it under clause (s) of sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021;
(g) “investigating officer” means any person directed by the Authority under section 33 of the Insurance Act, 1938, to investigate or inspect the affairs of any IIOs or IIIOs, as the case may be;
(h) “minimum information” means the minimum information which is required to be maintained by the IIOs or IIIOs, in such form and manner as specified under these regulations;
(i) “record” includes documents or any information reduced in writing and maintained in physical form, electronic form or in both.
(2) Words and expressions used and not defined in these regulations but defined in the Act or Acts mentioned in the First Schedule to the Act or any rules, regulations or notifications made thereunder, shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be.
4. Maintenance of Policy and Claims records:
(1) Every IIO shall have a Board approved policy for maintenance of records, which shall, inter- alia, include the following –
(a) processing and electronic maintenance of records;
(b) privacy and security of policyholder or cedant, as the case may be, and claim data;
(c) cybersecurity policy and data protection;
(d) security of hardware and software;
(e) backups, disaster recovery and business continuity;
(f) data archival; and
(g) detailed plan to review the implementation of the maintenance and storage of records to be overseen by the Risk Management Committee of the Board.
Provided that every IIO, except IIOs transacting re-insurance business, in its Board approved policy, shall also include a provision for maintenance of complete and accurate records of every policy and claim, in such form and manner as specified under clause (a) and (b) of sub-section (1) of section 14 of the Insurance Act, 1938.
Provided further that IIOs, in an unincorporated form, may adopt Board approved policy of its parent entity, if the standards specified under sub-regulation (1) are covered thereunder.
(2) Every IIO shall maintain all its records in electronic retrieval form with necessary security features.
(3) Every IIO shall ensure that complete record related to the policies issued, claims made, and records related to re-insurance business are held in data centres located and maintained in India (including IFSC) only.
(4) Every IIO shall ensure that all Board approved policies are reviewed once in a year within 90 days from the expiry of the financial year.
5. Every IIO and IIIO shall submit to the Authority, as and when demanded, all records, information, data, documents, books and registers maintained under the Insurance Act, 1938, any other applicable law or the rules, regulations, guidelines, circulars or directions issued thereunder;
6. Every IIO shall maintain a record of its employees excluding staff or salaried field workers involved in solicitation, comprising of the (i) name; (ii) employee identification number; (iii) date of appointment; (iv) present designation; (v) PAN number; (vi) present salary; perks; (vii) allowances; any other benefits; (viii) taxes and related papers with cross-reference to appointment letter and date of termination, if any, and, (ix)in respect of any payment made to an employee or other person on account of travelling expenses, record showing full details of the journey performed, purpose of the journey, details of the fares paid and allowances granted.
7. Every IIIO shall maintain details of all past and present employees including (i) the names of the employees, (ii) employee identification number, (iii) date of appointment, (iv) date of termination if any, (v) designation, (vi) qualification; (vii) license/Registration number, (viii) license/registration validity period, (ix) date of certificate of training completion, (x) date of passing the test, (xi) dates of renewal training in case of employees qualified for solicitation of insurance business, and, (xii) name of the branch or office where posted.
8. Notwithstanding anything contained in these regulations, every manager, managing director or other officer including a service provider, contractor of an IIO and IIIO where services are outsourced by an IIO or IIIO, as the case may be, shall produce all such books of account, registers, other documents and the database in his custody or power and any statement and information relating to the affairs of the IIO or IIIO, as the case may be, to the Authority as and when demanded, including to an Investigation Officer for investigation and inspection, within the stipulated time.
9. Checks and other verifications: The information, data and documents maintained by the IIO and IIIO shall be reconciled with the audited financials, wherever relevant, and as per the requirements specified under other applicable laws and regulations. The records may be maintained either in physical form or electronic form and access shall be given to the personnel authorised by the Authority.
10. Every IIO and IIIO shall maintain the records for a minimum period of seven years, as prescribed under clause (8) of rule 39 of the Insurance Rules, 1939 or as per other applicable legal requirements, whichever is later:
Provided that such period being counted from the date –
a. of last transaction on the respective records or from the date of expiry of the policy whichever is later;
b. on which the claim is settled.
11. Power to specify procedures etc.: For the purpose of implementation, facilitation of these regulations by IIOs and IIIOs and matters incidental thereto, the Authority may specify norms, procedures, processes and manners for compliance by IIOs and IIIOs.
12. Power to remove difficulties and relax strict enforcement of the regulations:
(1) In order to remove any difficulty in the application or interpretations of the provisions of these regulations, the Authority may issue clarifications through guidance notes or circulars.
(2) On an application, received along with the specified non-refundable processing fees, the Authority, may for the reasons to be recorded in writing, relax the strict enforcement of any of the provisions of these regulations.
13. Repeals and saving:
(1) On and from the commencement of these regulations, following regulations and guidelines shall cease to apply in the International Financial Services Centre –
(a) the Insurance Regulatory and Development Authority of India (Maintenance of Insurance Records) Regulations, 2015; and
(b) the Insurance Regulatory and Development Authority of India (Minimum Information Required for Investigation and Inspection) Regulations, 2020.
(2) An IIO and IIIO operating in the IFSC prior to the commencement of these regulations, shall comply with additional requirements as stipulated in these regulations, within a period of six months from the date of commencement of these regulations or within such extended time as may be permitted by the Authority.
INJETI SRINIVAS, Chairperson
[ADVT.-III/4/Exty./555/2022-23]
