Annual report 2014-15

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N C.....). .,::a.. ..I. ... en • Head Office Delhi Office m 7ft fit fu m 3rd Floor, Parishram Bhavan, Gate No. 3, 1st Floor, Jeevan Tara ir.tai Basheerbagh, Hyderabad -500 004 Parliament Street, New Delhi - 110 001 Phone : + 91-40-2338 1100 / 1300 Phone : + 91-11-237 4 7648 Fax: +91-40-6682 3334 Fax: +91-11-2374 7650 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIAni.vog.adri@adri :liam-E ni.vog.adri.www:etisbeW 0567 4732-11-19+ : xaF 4333 2866-04-19+ : xaF 8467 4732-11-19+ : enohP 0031 / 0011 8332-04-19+ : enohP AIDNI AIDNI 100 011 - ihleD weN ,teertS tnemailraP 400 005 - dabaredyH ,hgabreehsaB araT naveeJ ,roolF 1 ,3.oN etaG navahB marhsiraP ,roolF dr3 ts eciffO ihleD eciffO daeH AIDNI FO YTIROHTUA TNEMPOLEVED DNA YROTALUGER ECNARUSNI IDfll lli ~ ~ ~ llt, , 1, • 51-4102 TROPER LAUNNA• ~I~ ~ itm ~f.hoqcfi 3ft-~ ~cfim ~ -- INSURANCE REGULATORY AND idai DEVELOPMENT AUTHORITY OF INDIA ~ ~- 101/5/3fR&gt~~3rR-2014-15/31~-15 6 ~. 2015 ~ . cnm rcra ~ fcrawr. ~ rlTffil" <'fN, "1~c'lc1e,'IQ ~. a:rm, ~ c=nfr ~ - 110 001 ~ .flm fclfc-l<JIJ-14> 3ITT" Fcrn,ra ~ ~ . 1999 cfi'I" '<l"RT 20 $ ~ $ ~. 31 s<t ITT 2015 ~ ~ Ult$ fi:r<l ~ cfi'I" <llm ftmt cfi'I" ~ i;m:t, ~-.fr.fcr.fcr.m. (mfircn ftcnt fclcl:i:fcr1<11, fcm:i:urr 3ITT" 3-fc=<l" ~ ~ ~ fcnm ;,rr.,r) ~ . 2000 $ ~ im-q R :it,r ~ ~I ~. ~..k\ ~C7)"1cf) (tr.lffi. ~) ~ LETTER OF TRANSMITTAL Ref. No. 101/5/R&D/SD/AR-2014-15/31/Nov-15 6th November, 2015 The Secretary, Department of Financial Services Ministry of Finance 3rd Floor, Jeevan Deep Building, Parliament Street, New Delhi - 110 001 Sir, In accordance with the provisions of Section 20 of the Insurance Regulatory and Development Authority Act, 1999, we are sending herewith a copy of the Annual Report of the Authority for the financial year ended 31st March, 2015 in the format prescribed in the IRDA (Annual Report - Furnishing of returns, statements and other particulars) Rules, 2000. Yours faithfully, ~ ~ -~~~~~r::•~ I 'lft>.m 'li<R, cfmu <ft'!,~. ~-500 004. 'lml Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. (:..: 91-040-2338 1100, ffi: 91-040-6682 3334 Ph.: 91-040-23381100, Fax: 91-040-6682 3334 i-~: irda@irda.gov.in ~ : www.irda.gov.in E-mail : irda@irda.gov.in Web.: www.irda.gov.inANNUAL REPORT 2014-15 CONTENTS Page No. MISSION STATEMENT IRDAI Members of the Authority 31.03.2015 SENIOR OFFICIALS AT IRDAI PART – I POLICIES AND PROGRAMMES I.1 General Economic Environment ................... 1 I.2 World Insurance Scenario ................... 4 I.3 Appraisal of Indian Insurance Market ................... 8 I.4 Review ................... 28 I.4.1 Protection of Interests of Policyholders ................... 28 I.4.2 Maintenance of Solvency Margin of Insurers ................... 35 I.4.3 Monitoring of Reinsurance ................... 36 I.4.4 Insurance Pools ................... 37 I.4.5 Monitoring of Investments by the Insurers ................... 42 I.4.6 Health Insurance Business ................... 45 I.4.7 Business in the Rural and Social Sectors ................... 57 I.4.8 Financial Reporting and Actuarial Standards ................... 60 I.4.9 Anti-Money Laundering/Counter Finance of Terrorism Programme ................... 61 I.4.10 Crop Insurance ................... 63 I.4.11 Micro Insurance ................... 66 I.4.12 Directions, Orders and Regulations issued by the Authority ................... 70 I.4.13 Right to Information Act, 2005 ................... 70 PART – II REVIEW OF WORKING AND OPERATIONS II.1 Regulation of Insurance and Reinsurance Companies ................... 71 II.2 Intermediaries Associated with the Insurance Business ................... 73 II.3 Professional Institutions connected with Insurance Education ................... 81 II.4 Litigations, Appeals and Court Pronouncements ................... 82 II.5 International Cooperation in Insurance ................... 84 II.6 Public Grievances ................... 89 II.7 Insurance Associations and Insurance Councils ................... 92 II.8 Functioning of Ombudsmen ................... 97 vANNUAL REPORT 2014-15 Page No. PART – III STATUTORY AND DEVELOPMENTAL FUNCTIONS OF THE AUTHORITY III.1 Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration ................... 99 III.2 Protection of the interests of policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance .................. 100 III.3 Specifying requisite qualifications, code of conduct and practical training for intermediaries or Insurance Intermediaries and agents ................... 101 III.4 Specifying the code of conduct for surveyors and loss assessors ................... 103 III.5 Promoting efficiency in the conduct of insurance business ................... 104 III.6 Promoting and regulating professional organisations connected with the insurance and reinsurance business ................... 106 III.7 Levying fees and other charges for carrying out the purposes of the Act ................... 107 III.8 Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business ................... 107 III.9 Control and regulation of rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938) .................. 109 III.10Specifying the form and manner in which books of accounts shall be maintained and statements of accounts shall be rendered by Insurers and other insurance intermediaries ................... 109 III.11 Regulating investment of funds by insurance companies ................... 109 III.12Regulating maintenance of solvency margin .................... 110 III.13Adjudication of disputes between Insurers and Intermediaries or Insurance Intermediaries ................... 110 III.14Supervising the functioning of the Tariff Advisory Committee ................... 110 III.15Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in para ‘6’ ................... 111 III.16Specifying the percentage of life insurance business and general insurance business to be undertaken by the Insurers in the rural and social sectors ................... 111 viANNUAL REPORT 2014-15 Page No. PART – IV ORGANISATIONAL MATTERS IV.1 Organisation ................... 113 IV.2 Meetings of the Authority ................... 113 IV.3 Human Resources ................... 113 IV.4 Internal Committee for Women Employees ................... 114 IV.5 Promotion of Official Language ................... 114 IV.6 Research and Development ................... 115 IV.7 Status of Information Technology ................... 115 IV.8 Accounts ................... 116 IV.9 IRDAI Journal ................... 116 IV.10 Acknowledgements ................... 117 LIST OF BOX ITEMS 1. Health Insurance as a class of business ................... 50 2. Insurance Marketing Firm ................... 76 3. Surveyor and Loss Assessors ................... 79 4. Insurance Laws (Amendment) Act, 2015 ................... 82 TEXT TABLES I.1 National Income ................... 1 I.2 Sector Wise Growth of National Income ................... 2 I.3 Gross Savings (As a ratio of GNDI) ................... 3 I.4 Total Real Premium Growth Rate in 2014 ................... 4 I.5 Region Wise Life and Non-life Insurance Premium ................... 5 I.6 Insurance Penetration and Density in India ................... 7 I.7 Registered Insurers in India ................... 8 I.8 Premium Underwritten: Life Insurers ................... 9 I.9 Market Share: Life Insurers ................... 10 I.10 New Policies Issued: Life Insurers ................... 11 I.11 Paid-up Capital: Life Insurers ................... 11 I.12 Commission Expenses: Life Insurers ................... 12 I.13 Commission Expense Ratio: Life Insurers ................... 12 viiANNUAL REPORT 2014-15 Page No. I.14 Operating Expenses: Life Insurers ................... 13 I.15 Operating Expense Ratio: Life Insurers ................... 13 I.16 Individual Death Claims of Life Insurers during 2014-15 ................... 14 I.17 Group Death Claims of Life Insurers during 2014-15 ................... 14 I.18 Dividends Paid by Life Insurers ................... 16 I.19 Number of Life Offices ................... 16 I.20 Distribution of Offices of Life Insurers ................... 17 I.21 Gross Direct Premium Income in India: Non-Life Insurers ................... 18 I.22 Gross Direct Premium Income in India: Non-Life Insurers Company-wise ................... 19 I.23 Premium (Within India) Underwritten by Non-Life Insurers Segment-wise ................... 20 I.24 Ratio of Outside India Premium to Total Premium ................... 21 I.25 Gross Direct Premium from Business Outside India: Non-Life Insurers ................... 21 I.26 Number of New Policies Issued: Non-Life Insurers ................... 22 I.27 Paid Up Capital: Non-Life Insurers and Reinsurer ................... 22 I.28 Underwriting Experience: Non-Life Insurers ................... 23 I.29 Commission Expenses: Non-Life Insurers ................... 23 I.30 Operating Expenses: Non-Life Insurers ................... 23 I.31 Net Incurred Claims: Non-Life Insurers ................... 24 I.32 Incurred Claims Ratio: Non-Life Insurers ................... 25 I.33 Investment Income: Non-Life Insurers ................... 25 I.34 Net Profits/Losses: Non-Life Insurers ................... 26 I.35 Dividends Paid: Non-Life Insurers ................... 26 I.36 Number of Non-Life Insurance Offices ................... 26 I.37 Number of Non-life Offices – Tier Wise ................... 27 I.38 Net Retentions (GIC) 2014 - 15 ................... 35 I.39 Members share in Indian Market Terrorism Risk Insurance Pool ................... 39 I.40 Reinsurance Ceded Outside India on Indian Business ................... 40 I.41 Reinsurance placed within India and Outside India as per cent of Gross Direct Premium in India.. (Excluding GIC) ................... 40 I.42 Net Retained Premium on Indian Business as per cent of Gross Direct Premium (Excluding GIC) ................... 40 viiiANNUAL REPORT 2014-15 Page No. I.43 Net Retentions of Non-life insurers as per cent of Gross Direct Premium (Including GIC) ................... 41 I.44 Premium Ceded under Declined Risk Pool for the year 2014-15 ................... 41 I.45 Total Investments of the Insurance Sector ................... 42 I.46 Total Investments of Life Insurers: Instrument-wise ................... 43 I.47 Investments of Life Insurers: Fund-wise ................... 43 I.48 Growth of Investments: Fund-wise ................... 44 I.49 Total Investments of Non-Life Insurers: Instrument-wise ................... 44 I.50 Trend in Health Insurance Premium over the past five years ................... 45 I.51 Classification of Health Insurance Premium ................... 46 I.52 Number of Persons covered under Health Insurance ................... 48 I.53 Net Incurred Claims Ratio of Health Insurers ................... 48 I.54 Number of Persons covered under Personal Accident Insurance Business ................... 49 I.55 Trend in Personal Accident Insurance Premium ................... 49 I.56 Trend in Overseas Travel Insurance Premium ................... 49 I.57 Trend in Domestic Travel Insurance Gross Premium ................... 51 I.58 Share of Top 5 States in Health Insurance Premium for FY 2014-15 ................... 52 I.59 Share of various channels of distribution – number of policies issued and amount of premium for FY 2014-15. ................... 52 I.60 Claims handled through TPAs ................... 54 I.61 Claims handled directly by the Insurers in-house ................... 54 I.62 Claims handled directly by the Insurers (both through TPAs and In-house) ................... 55 I.63 Aging of claims handled through TPAs ................... 55 I.64 Aging of claims handled directly by the Insurers in-house ................... 56 I.65 Aging of claims handled directly by the Insurers (both through TPAs and In-house) ................... 56 I.66 Names of TPAs whose registrations were renewed during 2014-15 ................... 57 I.67 TPA – Claims data for the FY 2014-15 ................... 58 I.68 TPA – Infrastructure for FY 2014-15 ................... 59 I.69 National Agricultural Insurance Scheme (NAIS) ................... 63 I.70 Modified National Agricultural Insurance Scheme (MNAIS) ................... 64 I.71 Weather Based Crop Insurance Scheme (WBCIS) ................... 65 ixANNUAL REPORT 2014-15 Page No. I.72 Coconut Palm Insurance Scheme (CPIS) ................... 66 I.73 New Business under Micro Insurance Portfolio for 2014-15 ................... 67 I.74 Details of Micro Insurance Agents of Life Insurers 2014-15 ................... 68 I.75 Individual Death Claims under Micro Insurance Portfolio 2014-15 ................... 68 I.76 Group Death Claims under Micro Insurance Portfolio 2014-15 ................... 69 I.77 Duration-Wise Settlement of Death Claims in Micro Insurance – Individual Category ................... 69 I.78 Duration-Wise Settlement of Death Claims in Micro Insurance – Group Category ................... 69 I.79 List of Central Public Information Officers ................... 70 II.1 Details of Individual Agents of Life Insurers 2014-15 ................... 73 II.2 Details of Corporate Agents of Life Insurers 2014-15 ................... 73 II.3 Individual New Business Performance of Life Insurers for 2014-15 – Channel-wise ................... 74 II.4 Group New Business Performance of Life Insurers for 2014-15 – Channel-wise ................... 76 II.5 New Business Premium (Individual and Group) of Life Insurers for 2014-15 – Channel-wise ................... 77 II.6 Licenses Issued to Surveyors and Loss Assessors ................... 78 II.7 Grievances Relating to Surveyors and Loss Assessors ................... 80 II.8 State wise list of Insurance Brokers as on 31-03-2015 ................... 80 II.9 Web Aggregators Approved by the Authority ................... 81 II.10 Details of Cases Filed for the period 2014-15 ................... 82 II.11 Details of cases disposed/dismissed for the period 2014-15 ................... 84 II.12 Status of Grievances: Life Insurers during 2014-15 ................... 89 II.13 Status of Grievances: Non-Life Insurers during 2014-15 ................... 91 II.14 Disposal of Complaints by Ombudsmen during 2014-15 ................... 98 III.1 Insurance Repositories Approved by the Authority ................... 105 CHARTS I.1 Share of Sectors in GDP ................... 3 I.2 Insurance Penetration in Select Countries – 2014 ................... 5 I.3 Insurance Density in Select Countries – 2014 ................... 6 I.4 Insurance Penetration in India ................... 8 I.5 Insurance Density in India ................... 8 xANNUAL REPORT 2014-15 Page No. I.6 First Year Premium of Life Insurers ................... 9 I.7 Total Premium of Life Insurers ................... 9 I.8 Total Premium of Life Insurers – 5 years ................... 10 I.9 Duration wise Break-up of Claims Pending – Individual Policies ................... 15 I.10 Duration Wise Break-up of Claims Pending – Group Policies ................... 15 I.11 Number of Life Insurance Offices ................... 17 I.12 Geographical Distribution of Life Insurance Offices - Private Sector ................... 17 I.13 Geographical Distribution of Offices - LICI ................... 17 I.14 Geographical Distribution of Life Insurance Offices - Industry ................... 17 I.15 Gross Direct Premium of Non-Life Insurers in India ................... 18 I.16 Gross Direct Premium of Non-life Insurers – 5 years ................... 19 I.17 Segment-Wise Premium of Non-life Insurers ................... 20 I.18 Number of Non-Life Insurance Offices – Tier-wise for 2014-15. ................... 27 I.19 Trend in Health Insurance Premium ................... 45 I.20 Classification of Health Insurance Business(in terms of Gross Premium) ................... 46 I.21 Number of Persons Covered – Share of different class of business ................... 47 I.22 Share of States in Total Health Insurance Premium FY 2014-15 ................... 53 I.23 Contribution of various channels in HI premium ................... 53 II.1 Individual New Business Premium of Life Insurers – Channel-wise. ................... 75 II.2 Group New Business Premium of Life Insures – Channel-wise. ................... 75 II.3 New Business Premium of Life Insurers (Individual & Group) ................... 77 II.4 Classification of Life Complaints during 2013-14 and 2014-15 ................... 90 II.5 Classification of Non-Life Complaints during 2013-14 and 2014-15 ................... 91 II.6 Class-wise Non-Life Complaints during 2012-13 to 2014-15 ................... 91 STATEMENTS 1. International Comparison of Insurance Penetration ................... 121 2. International Comparison of Insurance Density ................... 122 3. First Year Life Insurance Premium (including single premium) ................... 123 4. Total Life Insurance Premium ................... 124 5. Linked and Non-Linked Premium of Life Insurers for 2014-15 ................... 125 6. Individual Death Claims for the year 2014-15 ................... 127 xiANNUAL REPORT 2014-15 Page No. 7. Group Death Claims for the year 2014-15 ................... 129 8. Assets under Management of Life Insurers ................... 131 9. Equity Share Capital of Life Insurers ................... 134 10. Quarterly Solvency Ratio of Life Insurers in India during the FY 2014-15 ................... 135 11. Gross Direct Premium of Non-Life Insurers (Within & Outside India) ................... 136 12. Segment-wise Gross Direct Premium Income of Non-Life Insurers (Within India) ................... 137 13. Health Insurance (Excluding Travel-Domestic/Overseas & Personal Accident) Gross Premium and Number of Persons Covered (2014-15) ................... 138 14. Incurred Claims Ratio – Public Sector Non-life Insurers ................... 139 15. Incurred Claims Ratio – Private Sector Non-life Insurers ................... 140 16. Assets under Management of Non-life Insurers ................... 142 17. Equity Share Capital of Non-life Insurers ................... 143 18. Solvency Ratio of Non-life Insurers ................... 144 19. Status of Grievances – Life Insurers for 2014-15 ................... 145 20. Status of Grievances – Non-life Insurers for 2014-15 ................... 146 ANNEXURE 1. Insurance Companies Operating in India ................... 149 2. Fee Structure for Insurers and Various Intermediaries ................... 151 3. (I) Indian Assured Lives Mortality (2006-08) Ultimate & (II) Mortality for Annuitants: LIC (a) (1996-98) Ultimate Rates ................... 152 4. List of Life Insurance Products and Riders approved by IRDAI in year 2014-15 ................... 156 5. List of Micro Insurance Products in operation as at 31.03.2015 ................... 161 6. Non-Life Insurance Products cleared during the financial year 2014-15 ................... 162 7. List of Health Insurance Products approved during FY 2014-15 ................... 164 8. Circulars / Orders / Notifications issued by the Authority from APRIL 2014 to MARCH 2015 ................... 167 9. Regulations framed under the IRDA Act, 1999 upto 31/03/2015 ................... 172 10. Penalties Levied by the Authority during FY 2014-15 ................... 175 xiiMISSION STATEMENT ü To protect the interest of and secure fair treatment to policyholders; ü To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy; ü To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates; ü To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery; ü To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players; ü To take action where such standards are inadequate or ineffectively enforced; ü To bring about optimum amount of self-regulation in day-to-day working of the industry consistent with the requirements of prudential regulation.ANNUAL REPORT 2014-15 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Members of the Authority as on 31st March, 2015 T S Vijayan CHAIRMAN WHOLE TIME MEMBERS R. K. Nair M. Ramaprasad (upto 17th March, 2015) D D Singh Pournima Gupte (from 13th January, 2015) xvANNUAL REPORT 2014-15 PART - TIME MEMBERS Anup Wadhawan Prof V K Gupta S B Mathur CA K Raghu CA Manoj Fadnis (upto 11th February, 2015) (from 12th February, 2015) xviANNUAL REPORT 2014-15 SENIOR OFFICIALS OF IRDAI EXECUTIVE DIRECTOR SRIRAM TARANIKANTI FINANCIAL ADVISER LALIT KUMAR SENIOR JOINT DIRECTORS: M PULLA RAO SURESH MATHUR RANDIP SINGH JAGPAL A R NITHIANANTHAM MAMTA SURI J MEENA KUMARI JOINT DIRECTORS: MUKESH SHARMA S N JAYASIMHAN YEGNA PRIYA BHARATH H ANANTHA KRISHNAN V JAYANTH KUMAR RAMANA RAO ADDANKI RAKESH K BAJAJ SANJEEV KUMAR JAIN T S NAIK S P CHAKRABORTY P K MAITI RAJ KUMAR SHARMA CHIEF VIGILANCE OFFICER A V RAO & JOINT DIRECTOR xviiANNUAL REPORT 2014-15 PART - I POLICIES AND PROGRAMMES I.1 GENERAL ECONOMIC ENVIRONMENT I.1.3 The quickening of activity in 2014-15 was largely led by industry and services. Within I.1.1 The India’s economy picked up in 2014-15 industry, higher growth was observed in rising by 7.3 percent on top of a growth of 6.9 manufacturing and electricity generation. The percent in 2013-14. This is in terms of new series of share of manufacturing was augmented by trading estimates(at market prices) which has been activity of constituent entities which formed part of released by the Ministry of Statistics & Programme services in the old series. In the services sector, Implementation(MOSPI) that also seen the ‘financial, real estate, and professional services’ as revision of the base year from 2004-05 to 2011-12. well as construction were the primary drivers. On I.1.2 The firming up of growth during 2014-15 was the other hand, the agriculture sector lost driven mainly by private consumption and momentum, adversely impacted by the deficient supported by fixed investment, even as southwest monsoon which affected kharif sowing government consumption and net exports and by unseasonal rains and hailstorms at the time slackened considerably. of rabi harvesting. TABLE I.1 NATIONAL INCOME# Item 2012-13 (NS) 2013-14 (NS) 2014-15 (PE) A) Estimate at Aggregate Level 1. National Product (` crore) 1.1 GNI 9172925 9800813 10513163 1.2 NNI 8193427 8751834 9388992 2. Domestic Produt (` crore) 2.1 GVA at basic prices 8599224 9169787 (6.6) 9827089 (7.2) 2.2 GDP 9280803 9921106 (6.9) 10643983 (7.3) 2.3 NDP 8301305 8872127 (6.9) 9519811 (7.3) B) Estimate at per capita level Population (in million) 1235 1251 (1.3) 1267 (1.3) Per Capita NNI (`) 66344 69959 (5.4) 74104 (5.9) Per Capita GDP(`) 75148 79305 (5.5) 84009 (5.9) NS: New Series Estimates; PE: Provisional Estimates. # at 2011-12 prices. Note: Figures in brackets are percentage changes over the previous year. Source: Central Statistical Organisation (CSO), Press Note dated 29th May 2015. 1ANNUAL REPORT 2014-15 I.1.4 Average inflation in terms of consumer price favourable base effect, which pushed inflation up index (CPI) at 5.9 per cent during 2014-15 was 5.3 percent in March, 2015. significantly lower than 9.5 percent a year ago. I.1.5 The average wholesale price index (WPI) Intra-year movements in inflation during 2014-15, inflation during 2014-15 at 2.0 percent was however, exhibited three distinct phases – first, significantly lower than the 6.0 percent of the weather related vegetable prices pressures till previous year. Since November, 2014, wholesale August; second, the subsequent fall in food prices prices have moved into contraction indicating the and pass-through of declining global commodity extent of slack in the economy as well as falling prices into food, fuel and services prices, resulting cost pressures. in a major shift in inflation trajectory that took (Source: RBI Annual Report 2014-15) inflation down to an intra-year low of 3.3 percent in November, 2014; and finally the reversal of TABLE I.2 SECTOR WISE GROWTH OF NATIONAL INCOME (` crore) Percentage change Industry 2012-13 (NS) 2013-14 (NS) 2014-15 (PE) over previous year 2013-14 2014-15 1. Agriculture, forestry & fishing 1,523,470 1,579,290 1,582,851 3.7 0.2 2. Mining & quarrying 262,253 276,380 283,062 5.4 2.4 3. Manufacturing 1,574,471 1,658,176 1,776,469 5.3 7.1 4. Electricity, gas, water supply 202,224 211,846 228,579 4.8 7.9 and other utility services 5. Construction 740,518 758,887 795,066 2.5 4.8 Industry (2+3+4+5) 2,779,466 2,905,289 3,083,176 4.53 6.12 6. Trade, hotels, transport, 1,548,739 1,720,513 1,904,200 11.1 10.7 communication and services related to broadcasting 7. Financing, insurance, real estate 1,675,405 1,807,338 2,015,912 7.9 11.5 & professional services 8. Public Administration, defence 1,072,144 1,157,357 1,240,950 7.9 7.2 and other services Service (6+7+8) 4,296,288 4,685,208 5,161,062 9.05 10.16 9. GVA at base price 8,599,224 9,169,787 9,827,089 6.64 7.17 NS: New Series Estimates; PE: Provisional Estimates. # at 2011-12 prices. Source: Central Statistical Organisation(CSO), Press Note dated 29th May 2015. 2ANNUAL REPORT 2014-15 cent of gross national disposable income (GNDI) 60.00 CHART I:1 SHARE OF SECTORS IN GDP (Table I.3) This largely reflected the reduction in the 50.00 saving rate of households on account of a decline 40.00 in physical assets as well as in valuables. On the 30.00 other hand, household financial saving gained from returns turning attractive with the moderation 20.00 in inflation as well as the pick-up in economic 10.00 activity. For 2014-15, CSO has not yet released its 0.00 estimates of gross saving. However, in terms of the 2012-13 (NS) 2013-14 (NS) 2014-15 (PE) Reserve Bank’s preliminary estimates, household 1. Agriculture 2. Industry 3. Service ■ ■ ■ financial saving is placed at 7.5 per cent of GNDI in Saving and Investment 2014-15, up from 7.3 per cent in 2013-14. I.1.6 In 2013-14, the gross domestic saving rate (Source: RBI Annual Report 2014-15) declined for the second consecutive year to 30 per TABLE I.3 : GROSS SAVINGS (AS A RATIO OF GNDI) (In per cent) Item 2011-12 2012-13 2013-14 Gross Savings 33.0 31.1 30.0 1.1 Non-financial Corporations 9.7 9.6 10.3 1.1.1 Public non-financial corporations 1.4 1.2 1.0 1.1.2 Private non-financial corporations 8.3 8.4 9.3 1.2 Financial Corporations 2.9 3.1 2.8 1.2.1 Public financial corporations 1.8 1.7 1.5 1.2.2 Private financial corporations 1.1 1.4 1.3 1.3 General Government -1.8 -1.3 -1.0 1.4 Household sector 22.2 19.7 17.8 1.4.1 Net financial saving 7.1 6.8* 7.1* 1.4.2 Saving in physical assets 14.8 12.6 10.4 1.4.3 Saving in the form of valuables 0.4 0.4 0.3 Note: Net financial saving of the household sector is obtained as the difference between change in financial assets and change in financial liabilities. Source: Central Statistics Office. * : As per Reserve Bank’s latest estimates, household financial saving for 2012-13 and 2013-14 are 7.0 per cent and 7.3 per cent, respectively, of GNDI. 3ANNUAL REPORT 2014-15 I.2 WORLD INSURANCE SCENARIO registered strong growth. Western Europe and Japan regained momentum and premium in North I.2.1 According to the ‘World Insurance in America continued to decline. Premium growth in 2014’ report published by reinsurance major Swiss Emerging Asia strengthened but slowed in Lain Re, the economic environment for insurers America and Africa. In Central and Eastern Europe improved only marginally in 2014, as global real premiums fell again. Notwithstanding the gross domestic product (GDP) rose by 2.7%, near acceleration in 2014, advanced-market life the 10-year annual growth rate average of 2.8%. insurance premium growth has generally The improvement was driven by the advanced stagnated since the financial crisis in 2008. markets, led by the UK. The Growth in UK was Advanced Asia and Oceania are the only regions to based on a recovery in domestic consumption due have higher average annual premium growth. In to lower unemployment and lower than expected the emerging markets, premium growth has been fiscal tightening. Growth in the US accelerated slower after than before the crisis. slightly to 2.4% but was held back by disruptive harsh winter conditions. The growth was also I.2.3 The recovery in the Non-life insurance sector stronger (but uneven) in Western Europe. In continued in 2014 with global premiums up 2.90 % Advanced Asia, growth slowed due to ongoing to USD 2124 billion, slightly higher than the 2.7% sluggishness in Japan. In contrast, the emerging growth of 2013 and also better than the pre-crisis markets grew at a slower aggregate rate of 4.1% in average growth. The advanced markets were the 2014, down from 4.6% in 2013. Many countries main drivers with regional variations. There was struggled with domestic difficulties, structural slightly slower but still robust 8.0% growth in deficiencies and uncertainty about the impact of emerging market premiums, down from 8.6% in the US Federal Reserve (Fed) cutting back its 2013, but below the pre-crisis average of 10%. quantitative easing program. Advanced countries’ equity markets outperformed their emerging market I.2.4 As per the report the prospect for Premium peers and government bond yields remained very growth in Life insurance sector is expected to low. As per the report the Total Direct premiums remain fairly strong in the advanced economies written grew by 3.7% in 2014 to USD 4778 billion and to accelerate further in the emerging markets, after a year of stagnation in 2013. while the outlook for the non-life insurance sector is mixed. Premium rates are expected to remain low I.2.2 The Global life insurance premiums written in most markets but an improving global economy were USD 2655 billion in 2014, up 4.3% after a should provide some support for premium growth. decline of 1.8% in 2013. There was considerable (Source: Swiss Re, Sigma No.4/2015) variation in the growth patterns across regions and countries. Of the advanced markets, Oceania TABLE I.4 TOTAL REAL PREMIUM GROWTH RATE IN 2014 (In per cent) Regions/Countries Life Non-Life Total Advanced countries 3.8 1.8 2.9 Emerging markets 6.9 8 7.4 Asia 6.1 7.5 6.5 India 1.0 4.8 1.8 World 4.3 2.9 3.7 Source: Swiss Re, Sigma No. 4/2015. 4ANNUAL REPORT 2014-15 TABLE I.5 REGION WISE LIFE AND NON-LIFE INSURANCE PREMIUM (Premium In USD Billions) Region/Country Life Non-Life Total Advanced economies 2232.524 1706.79 3939.31 (56.67) (43.33) (100.00) Emerging markets 422.03 416.91 838.94 (50.30) (49.70) (100.00) Asia 892.32 425.25 1317.57 (67.72) (32.28) (100.00) India 55.30 14.59 69.89 (79.12) (20.88) (100.00) 2654.55 2123.70 4778.25 World (55.55) (44.45) (100.00) Source: Swiss Re, Sigma 4/2015. Figures in brackets indicate share of the segment in per cent. CHART I. 2: INSURANCE PENETRATION IN SELECT COUNTRIES - 2014 Pakistan Sri Lanka Russia PR China I India# Brazil Malaysia# Thailand Australia World Germany Singapore United States France Switzerland United Kingdom Japan# South Korea# South Africa Hong Kong Taiwan 0 2 4 6 8 10 12 14 16 18 Non-Life Life Total Source: Swiss Re, Sigma No. 4/2015. Data is in percent. ■ ■ ■ # Data relates to Financial Year 5ANNUAL REPORT 2014-15 CHART I.3: INSURANCE DENSITY IN SELECT COUNTRIES - 2014 Pakistan Sri Lanka -- India# .' .. Russia .... PR China r Thailand Brazil ~ Malaysia# World = South Africa ~ Germany South Korea# Australia Singapore Japan# France United States Taiwan United Kingdom Hong Kong Switzerland . . 0 1000 2000 3000 4000 5000 6000 7000 8000 Source: Swiss Re, Sigma No. 4/2015. Data is in USD Non-Life Life Total ■ ■ ■ # data relates to financial year Indian Insurance in the global scenario However, the share of Indian non-life insurance premium in global non-life insurance premium was I.2.5 Globally, the share of life insurance business small at 0.69 per cent and India ranks 20th in global in total premium was 55.55 per cent. However, the non-life insurance markets. share of life insurance business for India was very high at 79.12 per cent while the share of non-life Insurance penetration and density in India insurance business was small at 20.88 per cent. I.2.8 The measure of insurance penetration and I.2.6 In life insurance business, India is ranked 11th density reflects the level of development of among the 88 countries, for which data is published insurance sector in a country. While insurance by Swiss Re. India’s share in global life insurance penetration is measured as the percentage of market was 2.08 per cent during 2014. However, insurance premium to GDP, insurance density is during 2014, the life insurance premium in India calculated as the ratio of premium to population increased by 1.0 per cent (inflation adjusted) when (per capita premium). global life insurance premium increased by 4.3 per I.2.9 During the first decade of insurance sector cent. liberalization, the sector has reported consistent I.2.7 The Indian non-life insurance sector increase in insurance penetration from 2.71 per witnessed a growth of 4.8 per cent (inflation cent in 2001 to 5.20 per cent in 2009. However, adjusted) during 2014. During the same period, the since then, the level of penetration has been growth in global non-life premium was 2.9 per cent. declining reaching 3.3 per cent in 2014. A similar 6ANNUAL REPORT 2014-15 trend was observed in the level of insurance Similarly, the life insurance penetration surged density which reached the maximum of USD 64.4 from 2.15 per cent in 2001 to 4.60 per cent in 2009. in the year 2010 from the level of USD 11.5 in 2001. Since then, it has exhibited a declining trend During the year under review 2014, the insurance reaching 2.6 per cent in 2014. density was USD 55.0. I.2.11 Over the last 10 years, the penetration of I.2.10 The insurance density of life insurance non-life insurance sector in the country remained business had gone up from USD 9.1 in 2001 to steady in the range of 0.5-0.8 per cent. However, its reach the peak at USD 55.7 in 2010. During 2014, density has gone up from USD 2.4 in 2001 to USD the level of life insurance density was USD 44. 11.0 in 2014. TABLE I. 6 INSURANCE PENETRATION AND DENSITY IN INDIA Life Non-Life Industry Density Penetration Density Penetration Density Penetration Year (USD) (percentage) (USD) (percentage) (USD) (percentage) 2001 9.1 2.15 2.4 0.56 11.5 2.71 2002 11.7 2.59 3 0.67 14.7 3.26 2003 12.9 2.26 3.5 0.62 16.4 2.88 2004 15.7 2.53 4 0.64 19.7 3.17 2005 18.3 2.53 4.4 0.61 22.7 3.14 2006 33.2 4.1 5.2 0.6 38.4 4.8 2007 40.4 4 6.2 0.6 46.6 4.7 2008 41.2 4 6.2 0.6 47.4 4.6 2009 47.7 4.6 6.7 0.6 54.3 5.2 2010 55.7 4.4 8.7 0.71 64.4 5.1 2011 49 3.4 10 0.7 59 4.1 2012 42.7 3.17 10.5 0.78 53.2 3.96 2013 41 3.1 11 0.8 52 3.9 2014 44 2.6 11 0.7 55 3.3 Note: 1. Insurance density is measured as ratio of premium (in USD) to total population. 2. Insurance penetration is measured as ratio of premium (in USD) to GDP (in USD). Source: Swiss Re, Sigma, Various Issues. 7CHART I.5: INSURANCE DENSITY IN INDIA I.3 APPRAISAL OF INDIAN INSURANCE TABLE I.7 MARKET REGISTERED INSURERS IN INDIA Registered insurers in India (As on 31st March, 2015) I.3.1 At the end of March 2015, there are 53 Type of business Public Private Total insurance companies operating in India; of which Sector Sector 24 are in the life insurance business and 28 are in Life Insurance 1 23 24 non-life insurance business. In addition, GIC is the sole national reinsurer. Non-life Insurance *6 **22 28 Reinsurance 1 0 1 I.3.2 Of the 53 companies presently in operation, eight are in the public sector - two are specialised Total 8 45 53 insurers, namely ECGC and AIC, one in life * Includes Specialised insurance companies - ECGC insurance namely LIC, four in non-life insurance and AIC. and one in reinsurance. The remaining forty five ** Includes five Standalone Health Insurance Companies companies are in the private sector. - Star Health & Allied Insurance Co., Apollo Munich Health Insurance Co., Max Bupa Health Insurance Co., LIFE INSURANCE Religare Health Insurance Co., and Cigna TTK Health Insurance Co. Premium Note: List of insurance companies registered in India is I.3.3 Life insurance industry recorded a premium given in Annexure I income of R328101.14 crore during 2014-15 as against R314301.66 crore in the previous financial premium received by the life insurers, first year year, registering growth of 4.39 per cent (9.44 per premium contributed the remaining 34.54 per cent cent growth in previous year). While private sector (38.28 per cent in 2013-14). During 2014-15, the insurers posted 14.32 per cent growth (1.33 per growth in renewal premium was 10.72 per cent cent decline in previous year) in their premium (7.85 per cent in 2013-14). First year premium income, LIC recorded 1.15 per cent growth (13.48 registered a decline of 5.82 per cent in comparison per cent growth in previous year) (Table I.8). to a growth of 12.08 per cent during 2013-14 (Table I.8). I.3.4 While renewal premium accounted for 65.46 per cent (61.72 per cent in 2013-14) of the total 1002 70 60 50 40 30 20 10 0 $SU nI 2002 3002 4002 5002 6002 7002 8002 9002 0102 1102 2102 3102 4102 CHART I.4: INSURANCE PENETRATION IN INDIA Life Non-Life Total 1002 6 5 4 3 2 1 0 tnec rep nI 2002 3002 4002 5002 6002 7002 8002 9002 0102 1102 2102 3102 4102 ANNUAL REPORT 2014-15 - - - - - - Life Non-Life Total 8TABLE I.8 CHART I.6: FIRST YEAR PREMIUM OF LIFE INSURERS PREMIUM UNDERWRITTEN : LIFE INSURERS (` crore) 140000 Insurer 2013-14 2014-15 120000 Regular Premium (1) 100000 LIC 31904.49 23112.20 80000 (5.25) (-27.56) 60000 Private Sector 20497.51 23940.13 40000 (-4.83) (16.79) 20000 Total 52402.00 47052.33 (1.03) (-10.21) LIC PRIVATE TOTAL Single Premium (2) 2013-14 2014-15 LIC 58904.30 55395.51 (27.23) (-5.96) Private Sector 9018.92 10880.10 (-2.08) (20.64) Total 67923.22 66275.61 (22.50) (-2.43) First Year Premium (3 =(1+2)) LIC 90808.79 78507.71 (18.53) (-13.55) Private Sector 29516.43 34820.23 (-4.01) (17.97) Total 120325.22 113327.94 (12.08) (-5.82) Renewal Premium (4) LIC 146133.51 161159.94 (10.55) (10.28) Private Sector 47842.93 53613.26 (0.38) (12.06) Total 193976.44 214773.20 (7.85) (10.72) erorc ` CHART I.7: TOTAL PREMIUM OF LIFE INSURERS 350000 300000 250000 200000 150000 100000 50000 0 LIC PRIVATE TOTAL 2013-14 2014-15 erorc ` ANNUAL REPORT 2014-15 ■ ■ ■ ■ I.3.5 Further, bifurcation of the first year premium indicates that single premium income received by the life insurers recorded negative growth of 2.43 Total Premium (5 =(3+4)=(1+2+4)) per cent during 2014-15 (22.50 per cent growth in LIC 236942.30 239667.65 2013-14). Single premium products continue to (13.48) (1.15) play a major role for LIC as they contributed 23.11 Private Sector 77359.36 88433.49 per cent of LIC’s total premium income (24.86 per (-1.33) (14.32) cent in 2013-14). In comparison, the contribution of Total 314301.66 328101.14 single premium income in total premium income (9.44) (4.39) during 2014-15 was 12.30 per cent for private insurance companies (11.66 per cent in Note: Figures in brackets indicate the growth (in per cent) over the previous year 2013-14). 9AANNNNUUAALL RREEPPOORRTT 22001144--1155 I.3.6 The regular premium registered 10.21 per I.3.9 The market share of private insurers in first cent decline in 2014-15, as against 1.03 per cent year premium was 30.73 per cent in growth in 2013-14. The private insurers registered 2014-15 (24.53 per cent in 2013-14). The same for a growth of 16.79 per cent (4.83 per cent decline in LIC was 69.27 per cent (75.47 per cent in 2013-14). 2013-14); while LIC registered a negative growth of Similarly, in renewal premium, LIC continued to 27.56 per cent in the regular premium (5.25 per have a higher share at 75.04 per cent (75.34 per cent growth in 2013-14). cent in 2013-14) when compared to 24.96 per cent (24.66 per cent in 2013-14) share of private I.3.7 Unit-linked products (ULIPs) registered a insurers. growth of 10.85 per cent premium from R37544.08 crore in 2013-14 to R41616.94 crore in 2014-15. On the other hand, the growth in premium from TABLE I. 9 traditional products was at 3.51 per cent, with MARKET SHARE : LIFE INSURERS premium R286484.20 crore as against R276757.58 crore in 2013-14. Accordingly, the share of unit- Insurer 2013-14 2014-15 linked products in total premium increased to 12.68 Regular Premium (1) per cent in 2014-15 as against 11.95 per cent in 2013-14 (Statement No. 5). LIC 60.88 49.12 Market Share Private Sector 39.12 50.88 I.3.8 On the basis of total premium income, the Total 100.00 100.00 market share of LIC decreased from 75.39 per cent Single Premium (2) in 2013-14 to 73.05 per cent in 2014-15. The LIC 86.72 83.58 market share of private insurers has increased from 24.61 per cent in 2013-14 to 26.95 per cent in Private Sector 13.28 16.42 2014-15 (Table I.9). Total 100.00 100.00 First Year Premium (3 =(1+2)) LIC 75.47 69.27 CHART I.8 TOTAL PREMIUM OF LIFE INSURERS - 5 YEARS Private Sector 24.53 30.73 Total 100.00 100.00 350000 Renewal Premium (4) 300000 LIC 75.34 75.04 250000 200000 Private Sector 24.66 24.96 150000 Total 100.00 100.00 100000 Total Premium (5 =(3+4)=(1+2+4)) 50000 0 LIC 75.39 73.05 2010-11 2011-12 2012-13 2013-14 2014-15 Private Sector 24.61 26.95 LIC Private Industry Total 100.00 100.00 110 erorc ` . . • • ' ~ . ,. ■ ■ ■ ■ -+- ...... .......ANNUAL REPORT 2014-15 New Policies TABLE I.11 I.3.10 During 2014-15, life insurers issued 259.08 PAID UP CAPITAL* : LIFE INSURERS lakh new policies, out of which LIC issued 201.71 (` crore) lakh policies (77.86 per cent of total new policies Insurer As at 31st Additions As at 31st issued) and the private life insurers issued 57.37 March during March 2014 2014-15 2015 lakh policies (22.14 per cent of total new policies issued). While the private sector registered a LIC 100.00 0.00 100.00 decline of 9.79 per cent with a slight improvement Private Sector 25838.51 305.63 26144.14 (against the decline of 14.11 per cent in 2013-14) in TOTAL 25938.51 305.63 26244.14 the number of new policies issued against the * Excludes Share premium & Share application money previous year, LIC registered a significant decline of 41.55 per cent (6.17 per cent in 2013-14) in the number of new policies issued. Expenses of life insurers I.3.11 Overall, the industry witnessed a 36.61 per I.3.13 As per section 40B of the Insurance Act, cent decline (7.50 per cent decline in 2013-14) in 1938, no life insurer can spend as expenses of the number of new policies issued. management in any year an amount in excess of the limits prescribed under Rule 17D of the Insurance Rules, 1939. Rule 17D takes into TABLE I.10 consideration the size, age of the insurer and type NEW POLICIES ISSUED: LIFE INSURERS of business segments, while laying down the limits (` lakh) of such expenses. Insurer 2013-14 2014-15 The IRDAI on the recommendation of the LIC 345.12 201.71 Executive Committee of the Life Insurance Council (-6.17) (-41.55) (constituted under Section 64F of the Insurance Act, 1938) may enhance the limits of such Private Sector 63.60 57.37 expenses in any year. Expenses of management (-14.11) (-9.79) refer to all charges incurred either directly or indirectly and include commission payments of all Total 408.72 259.08 kinds, operating expenses and expenditure (-7.50) (-36.61) capitalised. Note:Figures in brackets indicate growth(in percent) I.3.14 The commission expenses ratio over previous year. (commission expenses as a percentage of premiums) decreased marginally to 5.93 per cent from 6.63 per cent in 2013-14. Overall, while the Paid-up capital commission expenses increased in the case of I.3.12 The total capital of the life insurance renewal premium, there has been a fall in the companies as on 31st March, 2015 was R26244.14 commission paid towards single premium and crore. During 2014-15, an additional capital of regular premium products. However, there is some R305.63 crore was brought into the industry by the variation in the position when compared between the private insurers and LIC, as reflected in private sector insurers (Table I.11). 11ANNUAL REPORT 2014-15 Table I.13, providing bifurcation of the commission I.3.16 As the initial set-up costs incurred by any ratios for both private and public sector life insurance company are high; the Authority has insurers. granted exemption from the limits under Rule 17D to 23 private insurers in the first five years of I.3.15 The operating expenses of the life insurers commencement of their business operations. decreased by 1.61 per cent in 2014-15 against an increase of 18.73 per cent in 2013-14. The I.3.17 Out of the 24 life insurance companies operating expenses towards life insurance (including one PSU), two companies were in the business stood at R36861.59 crore in 2014-15, as exemption period in 2014-15. Of the balance, against R37465.41crore in 2013-14. Operating twelve companies (including one PSU) were expenses, as a per cent of gross premium compliant with the prescribed limits under Rule underwritten decreased for LIC from 10.03 per cent 17D/directions of the Authority. One company is in in 2013-14 to 9.34 per cent in 2014-15. The same the extended time period granted by the Authority for private insurers decreased from 17.72 per cent to bring in compliance. Action is initiated against in 2013-14 to 16.36 per cent in 2014-15. For the the remaining nine non-compliant insurers. industry as a whole, the operating expenses ratio decreased from 11.92 per cent in 2013-14 to 11.23 per cent in 2014-15 (Table I.14 and I.15). TABLE I.13 COMMISSION EXPENSE RATIO : LIFE INSURERS (In percent) TABLE I.12 Insurer 2013-14 2014-15 COMMISSION EXPENSES : LIFE INSURERS (` crore) Regular (1) LIC 26.51 27.23 Insurer 2013-14 2014-15 Private Sector 14.83 12.54 Regular (1) Total 21.94 19.76 LIC 8458.94 6293.44 Single Premium (2) Private Sector 3040.05 3003.18 LIC 0.50 0.48 Total 11498.99 9296.62 Private Sector 0.47 0.37 Single Premium (2) Total 0.50 0.46 LIC 297.33 264.37 First Year (3 =(1+2)) Private Sector 42.65 40.20 LIC 9.64 8.35 Total 339.98 304.57 Private Sector 10.44 8.74 First Year (3 =(1+2)) Total 9.84 8.47 LIC 8756.26 6557.81 Renewal (4) Private Sector 3082.70 3043.38 LIC 5.48 5.31 Total 11838.96 9601.19 Private Sector 2.09 2.42 Renewal (4) Total 4.64 4.59 LIC 8006.62 8560.33 Total (5 =(3+4)=(1+2+4) Private Sector 1000.79 1299.16 LIC 7.07 6.31 Total 9007.41 9859.49 Private Sector 5.28 4.91 Total (5 =(3+4)=(1+2+4)) Total 6.63 5.93 LIC 16762.88 15118.14 Note : Commission expense ratio is the ratio Private Sector 4083.49 4342.54 between commission and the premium underwritten Total 20846.37 19460.68 by life insurers 12ANNUAL REPORT 2014-15 policies accounted for R23224.49 crore (49.90 per TABLE I.14 cent) as against R38967.66 crore, (65.35 per cent) OPERATING EXPENSES : LIFE INSURERS in 2013-14. In case of the private insurance (` crore) industry, the ULIP surrenders accounted for Growth over INSURER 2013-14 2014-15 previous R48657.89 crore (91.53per cent) in 2014-15 as year (%) against R44541.11crore (94.18 per cent) in 2013-14. LIC 23760.70 22395.45 -5.75 Death Claims for the year 2014-15 Private Sector 13704.71 14466.14 5.56 Individual Life Insurance Business: TOTAL 37465.41 36861.59 -1.61 I.3.19 In the year 2014-15, the life insurance companies had settled 8.51 lakh claims on TABLE I.15 individual policies, with a total payout of OPERATING EXPENSES RATIO : LIFE INSURERS R11,788.67 crore. The number of claims repudiated/rejected was 18,231 for an amount of INSURER 2013-14 2014-15 R701.69 crore. The number of claims pending at LIC 10.03 9.34 the year-end was 7,061 and the amount involved Private Sector 17.72 16.36 was R453.15 crore. Of these, 1488 claims were TOTAL 11.92 11.23 pending for more than one year and 5,573 claims were pending for less than and up to one year. Note : Operating expense ratio is the ratio of operating expenses to the premium underwritten by the life insurers I.3.20 The claim settlement ratio of LIC was better than that of the private life insurers. Settlement Benefits Paid ratio of LIC had increased to 98.19 percent during I.3.18 The life industry paid benefits of R211180.27 the year 2014-15 when compared to 98.14 percent crore in 2014-15 (R216395.63 crore in 2013-14) during the previous year. The percentage of constituting 64.36 per cent of the gross premium repudiations was 1.15 percent in 2014-15 underwritten (68.85 per cent in 2013-14). The remaining almost at the same level (1.10 percent) benefits paid by the private insurers stood at as of the previous year. R67054.52 crore (R58380.09 crore in 2013-14) I.3.21 For private insurers, settlement ratio had constituting 75.82 per cent of the premium gone up by 1.09% at 89.40 percent during the underwritten (75.47 per cent in 2013-14). LIC paid financial year 2014-15 when compared to 88.31 benefits of R144125.75 crore in 2014-15, percent during the previous year. Private insurers constituting 60.14 per cent of the premium had repudiated more (9,486) number of claims underwritten (R158015.54 crore in 2013-14, 66.69 when compared to (8,689) that of LIC. The per cent of the premium underwritten).The benefits percentage of repudiations for private insurers was paid on account of surrenders / withdrawals stood at 7.78% in 2014-15 against the 8.03% for at R99700.76 crore, of which LIC accounted for 2013-14. R46537.61crore and private sector R53163.15 crore. The comparative previous year statistics I.3.22 The industry’s settlement ratio had slightly were R106921.11 crore, of which LIC accounted increased to 96.97 percent in 2014-15 from 96.75 for R59626.83 crore and private sector paid percent in 2013-14 and the repudiation ratio had R47294.28 crore. In the current year, in case of remained at the same level of 2.08 percent in LIC, out of the R46537.61crore surrenders, ULIP 2014-15 as in 2013-14 (2.08%). 13ANNUAL REPORT 2014-15 TABLE I.16 INDIVIDUAL DEATH CLAIMS OF LIFE INSURERS DURING 2014-15 (Figures in percent of Policies) Break up of claims pending Claims Total Claims Claims Claims pending duration wise (Policies) Life Insurer written Claims Paid repudiated / at end < 3 3 - < 6 6 - < 1 > 1 back rejected of year mths mths yr yr Private Total 100.00 89.40 7.78 0.02 2.80 76.42 7.89 4.28 11.41 LIC 100.00 98.19 1.15 0.17 0.48 18.59 19.80 31.52 30.09 Industry Total 100.00 96.97 2.08 0.15 0.80 46.51 14.05 18.37 21.07 TABLE I.17 GROUP DEATH CLAIMS OF LIFE INSURERS DURING 2014-15 (Figures in percent of lives covered) Claims Break up of claims pending Total Claims Claims Claims pending duration wise (Lives) Life Insurer written Claims Paid repudiated at end < 3 3 - < 6 6 - < 1 > 1 back of year mths mths yr yr Private Total 100.00 91.20 1.80 0.00 7.00 6.89 0.47 0.26 92.39 LIC 100.00 99.64 0.04 0.00 0.32 67.34 24.63 1.13 6.89 Industry Total 100.00 96.15 0.76 0.00 3.08 10.61 1.95 0.31 87.13 Group Life Insurance: I.3.24 While LIC settled 99.64 per cent of the claims, the private life insurers paid 91.20 per cent I.3.23 During 2014-15, the total intimated claims of all claims. The industry repudiated 0.76 per cent were 4,52,625 while 14,158 claims were pending of the claims, written back 0.0002 per cent of the at the beginning of the year. Out of these, life claims and the remaining 3.08 per cent of the insurance industry had settled a total of 4,48,825 claims submitted were pending as at 31.3.2015. (96.15% of the total claims) claims. 95.22% of the settled claims were settled within 30 days of intimation. 0.01% of the claims took more than a year to get settled. 14ANNUAL REPORT 2014-15 Retention Ratio CHART I.9: DURATION WISE BREAKUP OF I.3.26 LIC traditionally reinsures a small CLAIMS PENDING - INDIVIDUAL POLICIES component of its business. During 2014-15, 90% 80% R184.88 crore was ceded as reinsurance premium 70% (R144.23 crore in 2013-14). The private insurers 60% together ceded `997.12crore (R944.80 crore in 50% 40% 2013-14) as premium towards reinsurance. 30% 20% Profits of Life Insurers 10% I.3.27 During the financial year 2014-15, the life 0% < 3 months 3 to 6 months 6 to 12 months > 12 months insurance industry reported net profit of Duration R7611crore as against R7,588 crore in 2013-14. Private Total LIC Industry Total Out of the twenty four life insurers in operations during 2014-15, twenty one companies reported profits. They are Aviva Life, Bajaj Allianz, Birla Sun Life, Canara HSBC, DHFL Pramerica, Future Generali, EXIDE Life, HDFC Standard, ICICI Prudential, IDBI Federal, India First, Kotak Mahindra, Max Life, PNB MetLife, Reliance Life, Sahara India, SBI Life, Shriram Life, Star Union, Tata AIA and LIC of India. LIC of India reported net profit of R1823.78 crore i.e. an increase of 10.09 per cent over R1,656.68 crore in 2013-14. I.3.28 The following companies reported profit for the first time during the financial year 2014-15 : Future Generali reported R0.99 crore, India First generated R6.89 crore and Star Union Dai-ichi reported profit of R12.87 crore. Returns to Shareholders I.3.29 For the year 2014-15, LIC paid R1803 crore Investment income (R1,634 crore in 2013-14) as dividends to I.3.25 As the operations of the life insurers shareholder i.e. Government of India. Seven stabilize, their investment base gets strengthened, private life insurers paid dividends during the resulting in investment income forming a larger financial year. HDFC Standard Life paid R139.64 proportion of their total income. In the case of LIC, crore (R99.74 crore in 2013-14), ICICI Prudential the investment income including capital gains was paid R836.83 crore (R1093.29 crore in 2013-14), R168063.58 crore (R143244.37crore in Max Life paid R199.63 crore (R264.48 crore in 2013-14).In the case of private insurance industry, 2013-14), Reliance Life paid R95.71 crore the investment income including capital gains was (R95.71crore in 2013-14), Sahara India paid at R78701.54 crore in 2014-15 (R41819.68 crore in R23.20 crore (Previous Year - Nil), SBI Life paid 2013-14). 15 tneC reP CHART I.10: DURATION WISE BREAKUP OF CLAIMS PENDING - GROUP POLICIES 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% < 3 months 3 to 6 months 6 to12 months > 12 months Duration Private Total LIC Industry Total tneC reP ■ ■ ■ 100% ■ ■ ■ANNUAL REPORT 2014-15 R120crore (R100crore in 2013-14) and Shriram both private sector (58.2% of the offices in small Life paid R16.14crore (Previous Year - Nil). towns) and public sector life insurers (79.5% of the offices in small towns). TABLE I.18 District Level Presence of Life Offices DIVIDENDS PAID BY LIFE INSURERS I.3.32 As at 31st March, 2015, the sole public sector (` crore) life insurer, LIC of India had its offices in 606 Insurer 2013-14 2014-15 districts out of 640 districts (As per the Decennial LIC 1634 1803 Census -2011) in the country. As such, it covered Private Sector* 1723 1434 94.69 per cent of all districts in the country, Total 3357 3237 whereas the private sector insurers had offices in Note: 6 Life Insurers in 2013-14 and 7 in 2014-15. 552 districts covering 86.25 per cent of all districts in the country. In total, both LIC and private insurers Expansion of Offices together covered 95.16 per cent of all districts in the country. The number of districts with no I.3.30 The decreasing trend of number of life presence of life insurance offices stood at 31 in the insurance offices (which had continued until country. Out of these, 23 districts belong to the six 2012-13) had reverted from 2013-14 and there is a of the north eastern states namely Arunachal marginal increase in 2014-15 at 11033 from 11032 Pradesh, Manipur, Meghalaya, Mizoram, of the previous year. Nagaland and Sikkim. In 22 states/union territories I.3.31 It is observed that majority of offices of life (out of a total of 36 states/union territories in the insurers are located in towns which are not listed in country), all their districts were covered through life HRA classifications of the Ministry of Finance. insurance offices Around 67% of life insurance offices are located in these small towns. This fact remains similar for TABLE I.19 NUMBER OF LIFE OFFICES * (As on 31st March 2015) Insurer 2007 2008 2009 2010 2011 2012 2013 2014 2015 Private 3072 6391 8785 8768 8175 7712 6759 6193 6156 LICI 2301 2522 3030 3250 3371 3455 3526 4839 4877 Industry 5373 8913 11815 12018 11546 11167 10285 11032 11033 * Offices opened after seeking approval of the Authority Note: 1) Data collected from life insurers through a special return. 2) Office as defined under Section 64VC of the Insurance Act, 1938. 3) For similar data for 2001-2007, refer IRDA Annual report for 2007-08. 16ANNUAL REPORT 2014-15 TABLE I.20 DISTRIBUTION OF OFFICES* OF LIFE INSURERS (As on 31st March 2015) Insurer Metro Urban Others Total Private ## 705 1867 3584 6156 LICI # 378 622 3877 4877 Industry 1083 2489 7461 11033 * Offices opened after seeking approval of the Authority. Based on the HRA classification of places done by the Ministry of Finance. Metro : Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore. Urban : A, B-1 and B-2 class cities of the HRA classification. Unclassified : Rest of the places. # Does not include one office located outside India. ##Does not includes two offices which are located outside India. CHART I.11 NUMBER OF LIFE INSURANCE OFFICES LICI Private Industry 17 seciffO efiL fo.oN CHART I.12: GEOGRAPHICAL DISTRIBUTION OF LIFE INSURANCE OFFICES-PRIVATE SECTOR 11.5% 30.3% 58.2% Metro Urban Others ■ ■ ■ CHART I.13: GEOGRAPHICAL DISTRIBUTION OF OFFICES-LICI 7.8% 12.8% 79.5% Metro Urban Others 14000 ■ ■ ■ 12000 CHART I.14: GEOGRAPHICAL DISTRIBUTION 10000 OF LIFE INSURANCE OFFICES-INDUSTRY 8000 6000 4000 9.8% 2000 22.6% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 67.6% Year ended on 31st March Metro Urban Others ■ ■ ■ANNUAL REPORT 2014-15 NON-LIFE INSURANCE I.3.33 As on 31st March, 2015, 28 general insurance companies have been granted registration for carrying on non-life insurance business in the country. Of these, six are in public sector and the rest are in private sector. Of the private sector insurers, 5 have been granted registration to carry on operations exclusively in the health segment. Among the public sector companies, while the four public sector insurance companies carry on multi line operations, there are two specialized insurance companies: one for credit insurance (ECGC) and the other for crop insurance (AIC). Premium: I.3.34 The non-life insurance industry underwrote total premium of R84684 crore in India for the year 2014-15 as against R77554 crore in 2013-14, registering a growth of 9.19 per cent as against an increase of 12.13 per cent recorded in the previous year. The public sector insurers exhibited growth in 2014-15 at 10.23 per cent; over the previous year’s growth rate of 10.21 per per cent. The private general insurers registered growth of 9.62 per cent, which is lower than 14.52 per cent achieved during the previous year. CHART I.15: GROSS DIRECT PREMIUM INCOME I.3.35 The premium underwritten by 22 private OF NON-LIFE INSURERS IN INDIA sector insurers (including standalone health 90000 80000 insurers) in 2014-15 was R38033 crore as against 70000 R34255 crore in 2013-14. ICICI Lombard 60000 continued to be the largest private sector non-life 50000 insurance company, with market share of 7.89 per 40000 cent in the current year. It reported the market 30000 share in the year 2013-14 with 8.84 per cent. Bajaj 20000 Allianz, the second largest private sector non-life 10000 insurance company, which underwrote a total 0 premium of R5230 crore, reported increase in Public Private Standalone Specialised Industry market share from 5.82 per cent in 2013-14 to 6.18 Sector Sector Health per cent during the year under review. Out of the 22 2013-14 2014 -15 private insurers who were operating in the year 18 )erorC `( TABLE I.21 GROSS DIRECT PREMIUM INCOME IN INDIA: NON-LIFE INSURERS (` Crore) Insurer 2013-14 2014-15 Public Sector Insurer 38599.71 42549.48 (10.21) (10.23) Private Sector Insurer 32010.30 35090.09 (14.52) (9.62) Standalone Health Insurer 2245.05 2942.61 (30.06) (31.07) Specialised Insurer 4698.74 4102.10 (5.48) (-12.7) 77553.80 84684.28 Total (12.15) (9.19) Note: Figures in brackets indicate growth in percent over previous year. ■ ■ANNUAL REPORT 2014-15 2014-15, 19 insurers reported an increase in premium underwritten for the year 2014-15. ICICI TABLE I.22 Lombard General Insurance Company Limited, GROSS DIRECT PREMIUM INCOME IN INDIA : Shriram General Insurance Company Limited and NON-LIFE INSURERS - COMPANY - WISE Raheja QBE General Company Limited reported (` Lakh) decrease in premium underwritten for the year TOTAL MARKET 2014-15. (Table I.22) PREMIUM SHARE(%) I.3.36 In case of public sector non-life insurers, all Public Sector Insurers four companies expanded their business with an NATIONAL 1022288 1124189 13.18 13.28 increase in respective premium collections. The NEW INDIA 1154006 1320939 14.88 15.60 market share of New India increased to 15.60 ORIENTAL 712785 740794 9.19 8.75 percent in 2014-15 from 14.88 percent in the UNITED 970893 1069026 12.52 12.62 previous year, National Insurance increased to Sub-Total 3859972 4254948 49.77 50.24 Private Sector Insurers 13.28 percent in 2014-15 from 13.18 percent in the ROYAL SUNDARAM 143704 156920 1.85 1.85 previous year and United India Insurance RELIANCE 238882 271584 3.08 3.21 increased to 12.62 percent in 2014-15 from 12.52 IFFCO-TOKIO 293092 332997 3.78 3.93 percent in the previous year. However, the market TATA AIG 236271 271414 3.05 3.21 share of Oriental declined to 8.75 percent in ICICI LOMBARD 685616 667780 8.84 7.89 2014-15 from 9.19 percent in the previous year. BAJAJ ALLIANZ 451645 522985 5.82 6.18 New India which collected Direct Premium of CHOLAMANDALAM 185511 189043 2.39 2.23 R13209 crore, once again remained as the largest HDFC ERGO 290699 318221 3.75 3.76 general insurance company in India. FUTURE GENERALI 126256 143825 1.63 1.70 UNIVERSAL SOMPO 54045 70111 0.70 0.83 SHRIRAM 151059 149652 1.95 1.77 BHARTI AXA 142316 145707 1.84 1.72 RAHEJA QBE 2324 2163 0.03 0.03 CHART I.16: GROSS DIRECT SBI 118757 157690 1.53 1.86 PREMIUM OF NON-LIFE INSURERS - 5 YEARS L&T 25378 33171 0.33 0.39 MAGMA HDI 42493 47360 0.55 0.56 90000 LIBERTY VIDEOCON 12982 28386 0.17 0.34 80000 Sub-Total 3201030 3509009 41.27 41.44 70000 Standalone Health Insurers 60000 APOLLO MUNICH 69247 80313 0.89 0.95 50000 CIGNA TTK 34 2183 0.00 0.03 40000 MAX BUPA 30885 37266 0.40 0.44 30000 RELIGARE 15231 27580 0.20 0.33 20000 STAR HEALTH 109108 146919 1.41 1.73 10000 Sub-Total 224505 294261 2.89 3.47 0 Specialised Insurers 2010-11 2011-12 2012-13 2013-14 2014-15 ECGC 130373 136240 1.68 1.61 AIC 339501 273970 4.38 3.24 Public Private Sub-Total 469874 410210 6.06 4.84 Standalone Health Specialised Industry Grand Total 7755381 8468428 100.00 100.00 19 )erorC `( I 2013-14I 2014-15I2 013-14I 2 014-15 a ➔ I • I I I IANNUAL REPORT 2014-15 Segment wise premium TABLE I.23 PREMIUM (WITHIN INDIA) UNDERWRITTEN I.3.37 The Motor business continued to be the BY NON-LIFE INSURERS - SEGMENT WISE largest non-life insurance segment with a share of (` crore) Department 2013-14 2014-15 44.14 per cent (43.61 per cent in 2013-14). It Fire 7363 8057 reported growth rate of 10.52 per cent (14.15 per (9.49) (9.51) cent in 2013-14). The premium collection in Health Marine 3162 3020 segment continued to surge ahead at R22636 (4.08) (3.57) crore in 2014-15 from R19634 crore of 2013-14, Motor 33823 37379 registering growth of 15.29 per cent. However, the (43.61) (44.14) market share of health segment which is 26.73 Health 19634 22636 percent has slightly increased from previous year (25.32) (26.73) which was 25.32 percent. The premium collection Others 13572 13592 from Fire increased by 9.42 per cent and for Marine (17.50) (16.05) segments it has decreased by 4.48 per cent in Total Premium 77554 84684 2014-15 whereas for the previous year the growth Note: 1. Figures in brackets indicate the share rate in the Fire and Marine segments were 11.04 (in percent) of respective segment to the and 4.13 respectively. Total Premium 2. The above figures include premium of Specialized insurers and Standalone Health Insurers CHART I.17: SEGMENT-WISE PREMIUM OF NON-LIFE INSUERES 2013 -14 2014 -15 9% 10% 4% 4% 18% 16% 25% 27% 44% 44% Fire Marine Motor Health Others ■ ■ ■ ■ 20ANNUAL REPORT 2014-15 Premium Underwritten Outside India TABLE I.25 I.3.38 All public sector insurers (except United GRASS DIRECT PREMIUM India) are underwriting non-life insurance business FROM BUSINESS OUTSIDE INDIA : outside India. United India ceased operations NON-LIFE INSURERS (` lakh) outside India in 2003-04. The total premium Insurer 2013-14 2014-15 underwritten outside the country by the three public National 3810 4073 sector insurers stood at R2466 crore in 2014-15 as against R2380 crore in 2013-14 registering a (31.87) (6.90) growth of 3.61 per cent against 16.13 per cent in New India 218755 227095 the previous year. The premium underwritten (19.18) (3.81) outside India accounted for 2.83 per cent of total Oriental 15470 15398 premium underwritten by the Non Life insurers. -(16.50) -(0.47) United 0.00 0.00 Total 238035 246566 TABLE I.24 RATIO OF OUTSIDE INDIA PREMIUM Note : Figures in bracket indicate the per cent of growth TO TOTAL PREMIUM over previous year (in per cent) 2013-14), its market share in the total outside India Insurer 2013-14 2014-15 premium of public general insurers increased to National 0.37 0.36 92.10 per cent in 2014-15 from 91.90 per cent in New India 15.94 14.67 2013-14. National underwrote a premium of R41 Oriental 2.12 2.04 crore in 2014-15 (R38 crore in 2013-14). The United 0.00 0.00 outside India premium underwritten by Oriental Insurance stood at R154 crore which is marginally lower than previous year’s R155 crore, recording a I.3.39 New India continued to be the largest public 0.47 per cent decrease. (Table I.25) sector general insurer underwriting premium outside India, with the premium underwritten Number of policies issued: outside India constituting 14.67 per cent of the total I.3.41 The non-life insurers underwrote 1182.79 premium underwritten by the insurer in 2014-15 lakh policies in financial year 2014-15 against lower than 15.94 percent in 2013-14. In case of 1024.52 lakh policies underwritten in financial year Oriental, the contribution of outside India premium 2013-14, reporting a increase of 15.44 per cent to the total premium works out to be 2.04 per cent in over financial year 2013-14. The public sector 2014-15, marginally lower than 2.12 per cent in insurers witnessed considerable increase in the 2013-14. National Insurance continued to have a number of policies issued. They reported a 12.95 small component of overseas business at 0.36 per per cent increase in number of policies issued cent in 2014-15, slightly lower than 0.37 per cent during the financial year 2014-15 as compared to a reported in 2013-14. 12.99 decrease in financial year 2013-14. The private sector insurers reported a growth of 18.96 I.3.40 Of the total premium of R2466 crore written per cent in the number of policies issued in the outside India in 2014-15, New India underwrote a financial year 2014-15 (11.54 per cent in the higher premium of R2271 crore (R2188 crore in financial year 2013-14). 21ANNUAL REPORT 2014-15 TABLE 1.26 TABLE I.27 NUMBER OF NEW POLICIES ISSUED : PAID UP CAPITAL : NON-LIFE INSURERS* NON-LIFE INSURERS AND REINSURER* (` lakh) (` Crore) Insurer 2013-14 2014-15 Insurer 2013-14 2014-15 600.06 677.82 Non -Life Public Sector (-12.99) (12.95) Public Sector 600 650 Private Sector 424.47 504.97 Private Sector 6226 6972 (11.54) (18.96) Specialized Institutions Total 1024.52 1182.79 ECGC 1100 1200 (-4.27) (15.44) AIC 200 200 Standalone Health Insurers *Excluding standalone Health Private and Specialized Insurers Note : Figures in brackets indicate the growth ( in per cent) Star Health 334 362 over previous year. Apollo MUNICH 331 349 Max BUPA 669 791 Paid-up Capital Religare Health 250 350 I.3.42 The total paid-up capital of non-life insurers Cigna TTK 100 200 as on 31st March, 2014 was R10240 crore. During Reinsurer 2014-15, the non-life insurers added R1264 crore GIC 430 430 to their equity capital base. Public sector insurers Total 10240 11504 infused a further capital of R50 crore whereas specialized institution ECGC infused a further Note: * Excludes share premium and share application capital of R100 crore. Private sector insurers money. infused further capital to the extent of R746 crore. Standalone health insurers infused a capital of R368 crore including R100 crore capital infused by in 2014-15 from R547 crore in 2013-14. Cigna TTK Health Insurance company. Specialized insurers reported significant increase in underwriting losses in 2014-15 which is R428 Underwriting Experience crore as compared to underwriting profit of R95 I.3.43 The underwriting losses of the non-life crore in 2013-14. insurance companies increased to R10127 crore in Expenses of Non-Life Insurers 2014-15, from R7641 crore in the previous year. The underwriting losses increased by 32.54 I.3.44 The commission expenses of public percent over previous year. The public sector insurers, private non-life insurers, standalone insurers’ losses increased by 22.57 percent to health insurers and specialized insurers stood at R6592 crore in 2014-15 from R5379 crore in R3105 crore, R1761 crore, R1028 crore and R34 2013-14. The private sector insurers’ losses crore respectively for 2014-15, cumulatively increased to R2495 crore in 2014-15 from R1810 amounting to a total commission expense of R5928 crore in 2013-14. The underwriting losses of crore for the non-life industry. The commission standalone health insurer increased to R611 crore expenses continued to be the highest in the Health 22ANNUAL REPORT 2014-15 segment, which stood at R2554 crore, comprising TABLE I.28 of R1001 crore for the public sector, R526 crore for UNDERWRITING EXPERIENCE : the private sector companies and R1027 crore for NON-LIFE INSURERS the standalone health insurance companies. (` Crore) 2013-14 2014-15 I.3.45 Commission expenses and operating expenses constitute a major part of the total Public Sector Insurer -5378.66 -6592.47 expenses. The operating expenses of non-life (-16.09) (-17.14) insurance companies stood at R20206 crore in Private Sector Insurer -1810.19 -2495.42 2014-15 as against R16251 crore in 2013-14, (-8.06) (-10.23) showing overall increase of 24.34 per cent. The Standalone Health Insurer -546.96 -611.00 operating expenses of the public sector insurers, (-35.56) (-28.43) private non-life insurers, standalone health Specialised Insurer 95.01 -428.44 insurers and specialized insurers are increased by (3.63) (-16.77) 27.19 percent, 19.25 percent, 31.90 percent and -7640.81 -10127.32 24.91 percent respectively over previous year. Total (-12.72) (-14.99) (Table I. 30) Note : Figures in brackets indicate ratio of underwriting profit/loss to net earned premium TABLE I.29 COMMISSION EXPENSES : NON LIFE INSURERS (` Crore) Private Sector Public Sector Standalone Specialised Total Department Insurer Insurer Health Insurer Insurer 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 Fire 169.27 192.14 494.66 568.04 0.00 0.00 0.00 0.00 663.93 760.18 Marine 89.58 99.16 179.66 169.37 0.00 0.00 0.00 0.00 269.24 268.53 Motor 743.11 716.53 886.24 870.95 0.00 0.00 0.00 0.00 1629.35 1587.48 Health 370.06 526.02 790.50 1000.52 845.80 1027.49 0.00 0.00 2006.36 2554.03 Others 271.63 226.87 518.66 496.23 0.00 0.00 37.10 34.19 827.39 757.29 Total 1643.65 1760.72 2869.72 3105.11 845.80 1027.49 37.10 34.19 5396.27 5927.51 I.3.46 As per section 40C of the Insurance Act, TABLE I.30 1938 no insurer can spend as expenses of OPERATING EXPENSES : NON-LIFE INSURERS management in any year an amount in excess of (` Crore) the limits prescribed under Rule 17E of the Insurer 2013-14 2014-15 Insurance Rules, 1939. Rule 17E takes into Public Sector Insurer 8791 11181 consideration the size and age of the insurer while stipulating the limits of these expenses. The Private Sector Insurer 6312 7527 Authority based on the recommendation of the Standalone Health Insurer 928 1224 General Insurance Council constituted under Specialised Insurer 220 274 Section 64F may enhance the limits in any year. Total 16251 20206 23ANNUAL REPORT 2014-15 I.3.47 The Authority has granted exemption on the TABLE I.31 limits under Rule 17E to 22 private insurers in the NET INCURRED CLAIMS : NON-LIFE INSURERS first five years of their operations. The period of five (` Crore) financial years shall be in addition to the first partial Insurer 2013-14 2014-15 financial year. Public Sector Insurers 27817.96 31567.75 I.3.48 Out of the 28 non-life insurers (including the (11.00) (13.48) four public sector undertakings and the two Private Sector Insurers 17874.11 19430.46 specialized insurers) in the year 2014-15, (22.74) (8.71) 7 insurers are in the exemption period. 7 insurers Standalone Health Insurer 1016.03 1336.62 are compliant with the limits under Rule 17E and 14 (50.93) (31.55) insurers are non compliant with the limits under Rule 17E. Specialised Insurer 2470.52 2897.21 (9.44) (17.27) Incurred Claims Ratio Grand Total 49178.62 55232.04 I.3.49 The net incurred claims of the non-life (15.57) (12.31) insurers stood at R55232 crore in 2014-15 as Note: Figures in brackets indicate percentage growth against R49179 crore in 2013-14. The incurred over previous year. claims exhibited an increase of 12.31 per cent during 2014-15. The public sector insurers, private sector non-life insurers, standalone health insurers I.3.51 Among the various segments, Health and specialized insurers reported increase of insurance and Motor insurance had a high claims 13.48 percent, 8.71 percent, 31.55 percent and ratio at 96.93 per cent and 77.14 per cent 17.27 percent respectively in the incurred claims. respectively. The incurred claims ratio of the Motor Overall the increase in incurred claims during segment decreased to 77.14 percent in the year 2014-15 is 12.31 per cent which was lower 2014-15 from the previous year’s ratio 79.50 than15.57 per cent recorded during the previous percent. However incurred claims ratio of Others year. segment is increased to 73.91 percent from 72.96 I.3.50 The incurred claims ratio (net incurred percent in the previous year. Incase of Fire claims to net earned premium) of the non-life segment it is decreased to 73.78 percent from insurance industry was 81.70 per cent during 76.54 percent in the previous year. Thus the 2014-15 which is marginally less than the previous incurred claims ratio of Non-life industry as a whole year figure of 81.98 per cent. The incurred claims was less than 100 percent for all the segments in ratio for public sector insurers was 82.09 for the the year 2014-15. (Table I. 32) year 2014-15 which was reduced from the previous Investment Income: Non-Life Insurers year’s incurred claims ratio of 83.20. Whereas for I.3.52 The investment income of all non-life the private sector non-life insurers, standalone health insurers and specialized insurers incurred insurers during 2014-15 was R16767 crore claims ratio for the year 2014-15 was 79.69 (R14319 crore in 2013-14) registering a growth of percent, 62.18 percent and 110.68 percent 17.10 per cent as against 15.24 per cent in the respectively as compared to the previous year’s previous year. During the year under review, the ratio of 79.58 percent, 66.06 percent and 96.69 investment income of standalone health insurers percent respectively. 24ANNUAL REPORT 2014-15 TABLE I.32 INCURRED CLAIMS RATIO : NON-LIFE INSURERS (in per cent) Public Sector Private Sector Standalone Specialised Total Department Insurer Insurer Health Insurer Insurer 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 Fire 80.39 75.21 55.45 66.19 - - - - 76.54 73.78 Marine 59.30 57.80 71.24 87.38 - - - - 63.37 67.44 Motor 77.51 72.38 81.40 81.91 - - - - 79.50 77.14 Health 106.19 109.97 87.62 79.17 66.06 62.18 - - 97.05 96.93 Others 64.55 55.97 63.00 60.61 - - 96.69 110.68 72.96 73.91 Total 83.20 82.09 79.58 79.69 66.06 62.18 96.69 110.68 81.98 81.70 has increased significantly by 34.98 percent. Net Profits of Non-life Insurers The private sector insurers and specialized I.3.53 During the year 2014-15, the total net profit insurers reported a growth of 23.91 percent and of non-life insurance industry was R4639 crore as 14.77 percent respectively. On the other hand the against a profit of R4649 crore in 2013-14. The investment income for the public sector insurers public sector insurance companies reported a net had shown a growth of 14.17 per cent. profit of R3094 crore. The private sector insurers reported a net profit of R1644 crore and specialized insurers have reported R348 crore. However, the TABLE I.33 standalone health insurers reported R447 crore net INVESTMENT INCOME : NON-LIFE INSURERS loss. (` Crore) I.3.54 All the four public sector insurers reported Insurers 2013-14 2014-15 net profits during the year 2014-15. New India Public Sector 9394.29 10725.02 reported a net profit of R1431 crore during the year (9.08) (14.17) 2014-15 against a profit of R1089 crore in 2013-14 Private Sector 3979.64 4931.01 and thus increased 31.40%. Net profit of National (32.09) (23.91) has increased to R970 crore from R823 crore in the Standalone Health Insurers 132.29 178.56 year 2013-14, with an increase of 17.86 percent (41.74) (34.98) over previous year. Oriental reported a net profit of Specialised Insurers 812.69 932.75 R392 crore during 2014-15 against R460 crore in 2013-14 thus decreased by 14.78%. United India (15.00) (14.77) reported a net profit of R301 crore during 2014-15 Grand Total 14319 16767 against the R528 crore in 2013-14, thus decreased (15.24) (17.10) by 42.99%. Note: Figures in brackets indicate growth rate (in I.3.55 Among the seventeen private insurance percent) of the respective sectors companies, thirteen companies reported net 25ANNUAL REPORT 2014-15 profits, the remaining four companies incurred net Among the private sector insurers, four paid losses during 2014-15.The net profit of Bajaj dividend during the year 2014-15. TATA AIG paid Allianz during the year 2014-15 was R562 crore dividend of R37.88 crore, HDFC ERGO paid against net profit of R409 crore in the year 2013-14. dividend of R40.40 crore, ICICI Lombard paid The net profit of ICICI Lombard was R536 crore in dividend of R89.12 crore and Shriram General paid 2014-15 against the net profit of R511 crore during dividend of R43.62 crore. the year 2013-14. The four insurers which reported I.3.57 GIC paid R540 crore dividend during the net losses were SBI General, Bharti AXA, L&T year 2014-15 against R449.35 crore dividend paid General and Liberty Videocon. All the standalone during the year 2013-14. ECGC paid R48 crore health insurers except Apollo Munich reported net during the year 2014-15 against R88 crore in the losses during the year 2014-15 whereas in the year year 2013-14. AIC paid R20 corer dividend in 2013-14 all the standalone health insurers 2014-15 against nil in the previous year. reported losses. Apollo Muncih reported net profit of R0.66 crore during the year 2014-15. Both the TABLE I.35 DIVIDENDS PAID : NON-LIFE INSURERS specialized insurer have reported net profit during (` Crore) the year 2014-15. Insurer 2013-14 2014-15 Returns to Shareholders Non -Life I.3.56 Of the four public sector non-life insurance Public sector 599 665 companies New India paid dividend of R300 crore Private Sector 77 211 during the year 2014-15 against R220 crore paid in Standalone Health InsurersI 0 I 0 the year 2013-14. National Insurance paid Specialized Insurers dividend of R193.53 crore during the year 2014-15 ECGC 88 48 against R164.66 crore dividends during the year AIC 0 20 2013-14. Oriental Insurance paid dividend of R110 Reinsurer crore in the year 2014-15 against R108 crore in the previous year. United India paid dividend of R61 GIC 449 540 crore in the year 2014-15 against R106 crore paid Total 1213 1484 in the year 2013-14. Number of Offices – Non-Life Insurers I.3.58 As on 31st March 2015, the non-life insurance companies were operating from 10,407 TABLE I.34 offices all over the country, of which public sector NET PROFIT/LOSSES : NON-LIFE INSURERS and private sector companies had 8,207 and 2,200 (` Lakh) offices respectively. Insurer 2013-14 2014-15 TABLE I.36 Public Sector 289976 309399 NUMBER OF NON LIFE INSURANCE OFFICES Private Sector 153914 164351 (As on 31st March) Standalone Health Insurer -40310 -44651 Insurer 2014 2015 Specialised Insurer 61326 34814 Public Sector * 7,869 8207 Private Sector 2,003 2200 Total 464906 463913 Total I 9,872 I 10407 * Includes specialized Insurers AIC and ECGC 26ANNUAL REPORT 2014-15 TABLE I.37 NUMBER OF NON-LIFE OFFICES - TIER WISE Non Life Insurers Year Tier I Tier II Tier III Tier IV Tier V Tier VI Total Public Sector 2014 3747 1361 1257 1298 80 43 7786 2015 3866 1282 1517 1233 170 52 8120 Private Sector 2014 1337 124 147 0 0 0 1608 2015 1706 28 6 2 0 0 1742 Standalone Health 2014 394 1 0 0 0 0 395 2015 255 203 0 0 0 0 458 Specialised Insurers 2014 82 1 0 0 0 0 83 2015 87 0 0 0 0 0 87 2014 5560 1487 1404 1298 80 43 9872 Total 2015 5914 1513 1523 1235 170 52 10407 the country (94.68 per cent), the private sector CHART I.18: NUMBER OF NON LIFE INSURANCE OFFICES cover only 44.53 per cent of the districts in the TIER- WISE FOR 2014-15 country by having offices in 285 districts. There are 34 districts (5.3 per cent of districts) in the country, 2% 0% which do not have any non life insurance office. Private sector non-life insurers have not yet opened any offices in 355 districts. 23 states/ union territories (out of 36 states/ union territories) have 12% non life insurance offices in all of their districts. This lower level of coverage of districts by non life 15% insurers might also have let for the low non life 57% insurance penetration in the country, as compared 15% to penetration of the life insurance. SPECIALISED INSURERS ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.) Tier I Tier II Tier III ■ ■ ■ I.3.60 ECGC Ltd. is a specialised insurer Tier IV Tier V Tier VI ■ ■ ■ underwriting business in export credit insurance. The company underwrote gross direct premium of R1362 crore in 2014-15, reporting a growth of 4.48 District Level Coverage: per cent against R1304 crore in 2013-14. The I.3.59 When compared to life insurance, the insurer reported an underwriting loss of R291.91 proportion of districts covered by non-life insurers crore against R62.62 crore underwriting profit in is less. While the four public sector non-life insurers the previous year. The insurer’s Net Earned have offices at 606 districts out of 640 districts in 27ANNUAL REPORT 2014-15 Premium is to the tune of R1019 crore as against and developing adequate capacities within the R907 crore in the previous year. The net profit of domestic market. It is also administering the Indian the company decreased to R180 crore from R365 Motor Third Party Declined Risk Insurance Pool - a crore in the previous year. The insurer reported multilateral reinsurance arrangement in respect of incurred claims ratio of 114% in 2014-15 (82.23% specified commercial vehicles and where the in 2013-14). policy issuing member insurer cede insurance premium to the Declined Risk pool based on I.3.61 The Company had 11,236 short term export underwriting policy approved by IRDAI. credit insurance policies in force in 2014-15 (11,109 in 2013-14) including transfer guarantees. I.3.64 The total net premium written by GIC during Premium income earned on short term policies 2014-15 increased by 4.87 per cent to R13857 during the year was R383.87 crore (R389 crore in crore from R13213 crore in 2013-14. The net 2013-14). The Premium income earned on short earned premium of the Reinsurer (the net premium term ECIB during the year was R942.29 crore after adjustments for Reserve for Unexpired Risks) (R870 crore in 2013-14). The premium income during 2014-15 is decreased to R13558 crore from from the medium and long term business during R13609 crore in 2013-14. The net incurred claim 2014-15 was R36.24 crore as against R45.48 crore ratio has decreased to 87.70 per cent in 2014-15 in 2013-14. from 89 percent in 2013-14. The company reported a net profit of R2694 crore in 2014-15 as against Agricultural Insurance Company of India Ltd. net profit of R2253 crore in 2013-14. I.3.62 Agriculture Insurance Company of India Ltd The national re-insurer, General Insurance (AIC) is a specialized insurer underwriting Corporation (GIC Re), reported a solvency ratio of business in agriculture insurance. The company 3.04 as on 31st March, 2015 as against 2.73 as on underwrote gross direct premium of R2740 crore 31st March, 2014. during the year 2014-15, reporting a negative growth of 19 percent as against R3395 in crore I.4 REVIEW 2013-14.The insurer’s Net Earned Premium for the I.4.1 PROTECTION OF INTERESTS OF year 2014-15 is R1598 crore as against R1648 POLICYHOLDERS crore in the previous year. The insurer reported I.4.1.1 Draft Protection of policyholder’s underwriting loss of R158 in 2014-15 against a interest’s regulation: - The basic framework for profit of R32 crore in 2013-14. The net profit of the protection of policyholder’s interests is contained company was decreased to R168 crore from R249 in the IRDA (Protection of policyholder’s Interests) crore in the previous year. The company’s incurred Regulations 2002. Since then, the insurance claims ratio has increased to 108.47% in 2014-15 industry has witnessed numerous changes such as against 104.65% in 2013-14. as introduction of new type of products like micro General Insurance Corporation of India insurance products, ULIP products, Health I.3.63 GIC is the sole national reinsurer, providing Insurance etc, new categories of Distribution reinsurance to the direct general insurance Channels like Corporate Agents, Insurance companies in India. The Corporation’s Brokers, web-aggregators and Insurance reinsurance program has been designed to meet Marketing Firms (IMF) have been permitted to the objectives of optimizing the retention within the carryout insurance distribution activities. It is country, ensuring adequate coverage for exposure observed that with increase in competition the 28ANNUAL REPORT 2014-15 need to bring in more transparency in insurance spurious calls, common modus operandi followed sales process, strict enforcement of code of conduct by the fraudsters and measures to be taken by the by agents and intermediaries has arisen. This also public in case they receive such calls, IRDAI issued led to setting up of Integrated Grievance Redressal a public notice cautioning the public against Mechanism and Integrated Grievance Call Centre spurious calls and fictitious offers on August 26, by the Authority in order to facilitate resolution of 2014. grievances as per the specified time limits. This has I.4.1.3 As a customer education initiative on August helped in setting competitive standards in servicing 15, 2014, IRDAI issued an advertisement in of insurance policies in the industry. English in leading newspapers with the title “Real The FSLRC recommendations relating to value of Insurance through right buying – A few consumer protection also call for regulations to Tips”. The advertisement also cautioned public provide for greater consumer protection at all from falling prey to spurious calls made in the name stages of financial transactions. Therefore the of IRDAI and making payments to unlicensed need to examine the current regulations in line with Intermediaries. changing times was felt necessary. And as such I.4.1.4 In a press release on September 4th, 2014, IRDAI constituted a standing advisory committee IRDAI while cautioning public about spurious calls to have a relook at the existing regulations informed the public about the new patterns of pertaining to consumer protection, review of TATs spurious calls reported and released audio clips on for various services, contemplating introduction of spurious calls. a Citizen’s Charter for the insurance industry prescribing timelines for various services in each I.4.1.5 The Authority constituted an ‘Expert line of business. Based on the recommendations of Committee on Health Insurance’ on 29th December, the committee, Draft IRDA (Protection of 2014 to examine the existing regulatory framework Policyholder’s Interests) Regulations 2014 were governing Health Insurance Business in the areas placed in the public domain for comments. such as Products, Distribution, and Protection of Considering the comments and suggestions Policyholders Interests etc. The Committee received, IRDA (Protection of Policyholder’s submitted its report on 27th April, 2015 which is Interests) Regulations would be issued in due published for the information of all the course. They supersede the existing policyholder’s stakeholders. protection framework. The endeavor is to ensure I.4.1.6 IRDAI issued press release on February 9, protection of interests of policyholders without any 2015 regarding E-mail spoofing using the domain deviation and setting minimum bench marks in irda.gov.org to caution public about the conduct of servicing of insurance policies. some anonymous persons allegedly making an I.4.1.2 Spurious calls in the name of officials of attempt to cheat public by impersonation as IRDAI and other financial institutions have been representatives of IRDAI and sending mails to grave concern for the Insurance Industry. In order public from fake email ids. Public was advised to to check such threat, IRDAI has issued several report to cyber crime branch of law enforcement public notices, press releases, advertisements in agencies in case they receive any suspicious e- leading newspapers, directions to Insurance mails with details. Companies to caution public against spurious calls etc at various touch points and in media as well. Further to inform the public about nature of 29ANNUAL REPORT 2014-15 Financial literacy and consumer awareness educated about insurance products, and initiatives of IRDAI complaint handling procedures by insurers and etc. I.4.1.7 In spite of opening of the insurance sector for private participation, the levels of insurance Further, to provide impetus to consumer education, penetration and density are very low. The main IRDAI has adopted multi-pronged approach and reason for low penetration is lack of awareness encouraged all stakeholders to promote insurance about the insurance products and its benefits. awareness among the public. Financial literacy and consumer awareness are I.4.1.8 During the FY 2014-15, IRDAI has taken a essential components of financial inclusion. The number consumer education initiatives under the objective of consumer awareness initiatives of Bima Bemisaal brand. IRDAI is to educate general public about the In an attempt to increase the insurance awareness benefits of insurance, how to select an insurance at grass root level, IRDAI mandated all insurers to product and to educate them about the grievance have Board approved Insurance Awareness redress mechanism in case they are not satisfied Policy. Accordingly, insurers brought out the policy with the services provided and have a complaint approved by their respective Boards for the against financial service providers. financial year 2014-15 and the same was The Authority has embedded the principles of submitted to the Authority. The activities of the insurance awareness and consumer education as annual calendar as per the Board approved a means of protection of policyholders’ interests in Insurance Awareness policy was implemented by its regulatory framework. Some of the important insurers during the financial year and IRDAI had a regulatory provisions in this regard are given review meeting with them to ensure below: implementation of the guidelines in letter and spirit, thereby, promoting best practices of insurance I) Enclosing Insurance Awareness Policy of the education across the industry. new companies while making application for entry into the insurance sector under IRDA IRDAI has brought out following handbooks during (Registration) Regulations, 2000. the financial year 2013-14: ii) Specifying requirements of disclosures under i) The book titled as “Introduction to Insurance” IRDA (Advertisements) Regulations, 2000 and released targeting school children to make putting in place the Guidelines on them understand insurance in a simplified Advertisements, Promotion and Publicity of manner. Insurance Companies; ii) “A Handbook on Insurance” was released iii) Mandating disclosures to be made at the point containing frequently asked questions about of sale to the prospect under IRDA (Protection right buying of insurance. of the interests of the Policyholders) iii)Handbook on “Employment opportunities in Regulations, 2002 insurance sector” was meant for college goers iv) Mandating setting up of Policyholder Protection to make them aware about the job potential of Committee under Corporate Governance insurance market. Guidelines and placing emphasis relating to iv) A handbook on “Crop Insurance” was released keeping the policyholders well informed of and focussing on the rural segment. 30ANNUAL REPORT 2014-15 The first three books have been converted into The Insurance Awareness Campaign in the State E-books, which are available on IRDAI’s of Tripura was launched by Hon’ble Chief Minister Consumer Education Website i.e. of Tripura, Shri Manik Sarkar on 8th January, 2015 www.policyholder.gov.in at Agartala. The campaign is a joint effort of IRDAI and Government of Tripura. The objective of Insurance awareness campaigns through campaign is to make the citizens aware about the electronic and print media have been carried out to benefits of insurance. educate the general public during the year. IRDAI has produced the following three TV IRDAI has celebrated its foundation day (19th Advertisements educating the general public April) as Insurance Awareness Day. On this against spurious callers and fictitious offers with occasion, IRDAI conducted various programmes the advice to register complaint in the nearest including organising In-house Quiz Competition for police station. the employees of IRDAI, and 2nd Pan India Insurance Quiz Competition for the insurance 1. Cautioning neighbor (Sharma Ji) about the industry. A panel discussion on the topic of fraud calls in the name of IRDAI with the tagline “Financial inclusion and Insurance literacy” was ‘Sach or Jhoot Mein Janiye fark - rahiye also organised where eminent speakers from the satark’. financial sector have shared their views on the 2. Giving message through Policeman/Hero – subject. ‘IRDAI Bima aur Bonus ki ghoshna nahi karta’ I.4.1.9 IRDAI is playing an active role as a member with the tagline ‘Sach or Jhoot Mein Janiye fark of Core Committee of National Centre for Financial - rahiye satark’ Education, an institution, jointly formed by all 3. Cautioning about fictitious offer in the cafeteria financial sector regulators in India for on the theme of ‘Bach ke baba rahena tu…’ implementation of the National Strategy for with the tagline ‘IRDAI aap ke shubh chintak’. Financial Education (NSFE), and supporting the initiatives of NCFE viz. National Test for IRDAI also sponsored six episodes of Satyamev Assessment of Financial Literacy, launching of Jayate-III broadcast by All India Radio. Print NCFE web portal and in organizing National campaign on an all India basis was also carried out Survey to measure Financial Awareness etc., to during the year on the topic “Real value of name a few. The financial education syllabus has insurance through right buying- a few tips” in been developed by the Committee which is being English and 12 regional languages including Hindi. considered for inclusion in the CBSE text books. In an attempt to curb the menace of spurious Both as member of NCFE and also as a sectoral callers at National Capital Region, from where regulator for insurance sector in India, IRDAI is most of the grievances about spurious callers are working with schools, colleges and institutions for emanating from, a focussed Insurance Awareness dissemination of financial education in general and Campaign was carried out by displaying messages insurance education in particular. against spurious callers inside Metro Trains, Metro Initiatives towards policyholder protection: Stations and outside the Stations making the public I.4.1.10 With a view to look after the policyholders’ aware about the role of IRDAI, Grievance interest, IRDAI has taken a number of initiatives. Redressal Mechanism available for policyholders The framework of regulations to protect the and spurious callers. 31ANNUAL REPORT 2014-15 interests of prospects and policyholders are making suitable advice based on the customer contained in the IRDA (Protection of Policyholders’ needs so that the policy offered / sold meets the Interests) Regulations, 2002. The Regulations requirements of the prospect. They are also contain procedure to be followed at the point of required to provide after sales service like renewal, sale; disclosures to be made in life insurance and assistance in making claim etc. general insurance policy document, claim I.4.1.13 With the increasing recourse taken by procedure in respect of life insurance and general insurers, corporate agents and brokers to solicit insurance policy; and Turn around Time (TATs) for policies (including lead generation) through modes various functions under policy servicing. like tele-calling, SMS, email, internet, DTH, postal I.4.1.11 IRDA (Advertisement and Disclosure) mail which do not involve communication in person Regulations, 2000 and other guidelines relating to but in distance mode; IRDA issued Distance advertisements are aimed at ensuring that any Marketing Guidelines. The requirements to be communication (including that on the internet) complied with at the time of offer, negotiation and which directly or indirectly results in eventual sale conclusion of sale are aimed at affording protection or solicitation of policy should not be unfair or to prospects and policyholders taking recourse to misleading but should contain fair information distance marketing channels. about the product on offer so that the customer can I.4.1.14 Since the benefit of insurance can be take an informed decision about choosing the reaped only if appropriate products are sold; IRDA insurance product according to his need. has issued guidelines on File and Use of products I.4.1.12 Since insurance is a subject matter of both in life and non-life. In terms of these guidelines solicitation; intermediaries are involved in soliciting every insurer is required to seek approval of insurance. In order to ensure that only licensed products by making an application to IRDA. Along persons or institutions engage in prospecting and with the application, the insurer should furnish sale of insurance products, IRDA has issued specimen policy bond, specimen proposal forms, regulations for licensing. These regulations are specimen sales literature and statement of IRDA (Licensing of Insurance Agents) financial projections. Similar procedure has to be (Amendment) Regulations, 2013 for individual followed for change in terms and conditions. Even insurance agents; IRDA (Licensing of Corporate in case an insurer wants to withdraw a product, it Agents) Regulations, 2002 for corporate agents; can do so only after informing IRDA and giving IRDA (Insurance Brokers) Regulations, 2013 for reasons for withdrawal. These guidelines ensure insurance brokers; IRDA (Web Aggregators) that only approved products are sold to public. Regulations, 2013 for web aggregators; and IRDAI I.4.1.15 The IRDA (Non-Linked Product) (Registration of Insurance Marketing Firm) Regulations 2013 and IRDA (Linked Product) Regulations, 2015 for Marketing Firms. These Regulations 2013 governing non-linked and linked regulations mandate compliance of the agents, life insurance products are aimed at ensuring corporate agents, brokers, web aggregators and consistency in terms of products respectively and IMFs with the code of conduct prescribed therein to features offered by the insurers and bringing in ensure that the persons soliciting insurance transparency in terms of benefit payouts thereby business should be eligible persons and that they enabling the customers to choose the right policy. disseminate the requisite information in respect of insurance products offered for sale, understand I.4.1.16 IRDA (Health Insurance) Regulations the policy being sold and should be capable of 2013 lay greater emphasis on features of the 32ANNUAL REPORT 2014-15 product, standard declaration in the proposal form, I.4.1.19 As IRDAI facilitates grievance redressal greater transparency and disclosures in sales but does not adjudicate upon grievances, the literature and disclosures on the web portals to institution of Insurance Ombudsman functioning disseminate suitable information for decision under the Redressal of Public Grievances Rules, making, etc. The guidelines on standardization in 1998 serves as a simple, inexpensive and health insurance provide standardization of expeditious conciliatory and adjudicatory several aspects in health insurance such as mechanism for settlement of complaints on certain definitions for commonly used terms in health grounds of complaint relating to personal lines of policies, nomenclature and procedure for critical insurance. illness, pre-authorization and claim form, list of I.4.1.20 Thus, IRDA’s role in policyholder excluded expenses in hospitalization benefit to protection goes much beyond the IRDA (Protection policies, file and use application, customer of Policyholders’ Interests) Regulations, 2002. information sheet and agreement between Insurer Further, the above measures are in addition to and & Third party Administrator and Insurer & Provider not exclusive of other regulatory requirements of (Hospital). These guidelines prevent ambiguity entry point norms, licensing, maintenance of and ensure greater consistency in interpretation, solvency margins, investment norms, and public which is in the general interest of policyholders. disclosures etc. and supervisory mechanisms like I.4.1.17 In addition to the various measures aimed on-site inspection and off-site monitoring through at protecting the interests of insurance customers regulatory returns, market intelligence, audit etc. as indicated above, if there is a cause for complaint I.4.1.21 Considering the fact that IRDA (Protection regarding deficiency of service by an insurer, a of Policyholders’ Interests) Regulations are issued system for expeditious resolution is imperative. in the year 2002 and that several changes have The grievance redressal guidelines direct the occurred in the insurance landscape, there is an insurers to have a board approved Policyholder’s urgent need for revisiting the regulations to protection committee at the apex level for enhance the policyholder protection. IRDAI will be approving and reviewing Grievance Redressal issuing amendments to the IRDA (Protection of mechanism in the company and a uniform system Policyholders’ Interests) Regulations to strengthen for receiving, acknowledging and resolving the Policyholder Protection Regulations. Apart grievances within specified time limits; and to from the regulations a Model Citizen Charter for appoint an officer designated as Grievance insurance companies is also being contemplated. Redressal Officer at not only the Head Office/Corporate office level but also at every other Grievance Redressal and Consumer office. Education: I.4.1.22 The Consumer Affairs Department of I.4.1.18 In order to facilitate customers to reach the IRDAI facilitates resolution of policyholder insurers for their grievances, IRDAI has provided grievances by monitoring the insurers’ policy of channels for customers to raise their grievances Grievance redressal and takes several initiatives against insurers. These include online grievance towards consumer education in insurance. portal www.igms.irda.gov.in and a toll free Grievance Redressal Guidelines of IRDA mandate grievance call centre (155255). The complaints that all insurers should have a Board approved registered through these channels also are taken grievance redressal policy, designate a Grievance up with insurers for resolution. 33ANNUAL REPORT 2014-15 Redressal Officer at the senior management level of 15 days or the complainant is not satisfied with at the Head Office/Corporate Office/Principal the resolution, he/she may escalate the complaint Office and a Grievance Redressal Officer at every to IRDAI. IRDAI facilitates resolution through other office and constitute a policyholder protection review/reexamination by taking up the matter with committee as per the corporate governance the respective insurance companies. However, guidelines for receiving and analyzing reports IRDAI does not investigate into or adjudicate upon relating to grievances. The guidelines mandate each complaint received or escalated to IRDAI. In each insurer to put in place automated systems for case the complainants are not satisfied with the online registration and tracking of complaints as resolution, they may have to take up the matter for well as systems of receiving grievances by call or adjudication by the insurance ombudsman or any emails and integrate these systems with IRDAI. other appropriate forum or court as the case may Further, the guidelines contain timelines for various be. activities relating to grievances like I.4.1.25 The Department examines the level of acknowledgement, redressal, closure etc. compliance with IRDA (Protection of Policyholders Grievance redressal guidelines and the corporate Interests) Regulations, 2002. Since IGMS provides governance guidelines direct to have a a central repository of complaints across the policyholder protection committee as a mandatory industry, this helps IRDA as well as insurance committee for protection of interests of companies to carry out root cause analysis of policyholders. grievances to identify systemic and policy related I.4.1.23 In order to provide alternative channels to issues. This has helped the Authority to identify the receive complaints against insurers, IRDAI has set concerns of policyholders and issue suitable up IRDA Grievance Call Centre (IGCC) which instructions / suggest measures to insurers to receives and registers complaints through a toll reduce cause for customer grievances. free number and also furnishes the status of I.4.1.26 Consumer Affairs Department is also resolution. IRDA has also put in place the actively engaged in consumer education with a Integrated Grievance Management System view to spread insurance awareness. Insurance, (IGMS) as an online system for grievance being a complex financial product, requires special management that is not only a gateway for knowledge to understand the nature of insurance registering and tracking grievances online but also products on offer, their utility and the terms and act as an industry-wide grievance repository for conditions. The consumer education initiatives of IRDAI to monitor disposal of grievances by IRDA are aimed at ensuring that the consumer insurance companies. IGCC has an interface with identifies his needs, understands the insurance IGMS; and through IGMS, IRDAI has an interface products and the risks involved therewith so that he with grievance systems of insurers. takes an informed decision while purchasing I.4.1.24 The Consumer Affairs Department insurance. Insurance awareness campaigns by receives complaints Insurance companies from IRDA are carried out through all possible channels prospects and policyholders; and takes up these including print and electronic media viz. grievances with insurers for resolution. Prospects newspaper ads and publication of and policyholders are advised to first file their handbooks/comic books, radio/television, internet, complaints with the respective insurance seminars, social websites like You tube, facebook, companies. If the insurance companies do not twitter etc. The consumer education website attend to the complaints within the stipulated time www.policyholder.gov.in hosts a lot of insurance 34ANNUAL REPORT 2014-15 related information of interest to the public in the deficiency within a specified period not simple language. In order to enhance the reach of exceeding six months. the material, IRDAI has launched a Hindi site and I.4.2.3 In the case of non-life insurers, the Required also prepared the books in major regional Solvency Margin shall be the maximum of the fifty languages so that the information can be made crore of rupees (one hundred crore of rupees in the available to the people across the country in the case of reinsurer); or higher of RSM-1 and RSM-2 language of their choice. IRDAI is focusing now on computed as under: the distribution of the material developed for which IRDAI is collaborating with the insurance industry, l RSM-1 means the Required Solvency Margin other regulatory bodies, Financial Literacy based on net premiums, and shall be Centres, Common Service Centres etc., and using determined as twenty per cent of the amount all available alternative channels used to reach which is higher of the Gross Premiums people across the nation for spreading insurance multiplied by a Factor A and the Net Premiums. awareness, thereby creating the demand push for For the purpose of calculation of RSM1, enhancing the levels of insurance inclusion. IRDAI premium of the last 12 months on rolling basis is also an active participant in implementing the will be taken into account. National Strategy on Financial Education by l RSM-2 means the Required Solvency Margin working with other financial sector regulators based on net incurred claims, and shall be towards imparting financial literacy from early determined as thirty per cent of the amount stages of one’s life. which is the higher of the Gross Net Incurred I.4.2 MAINTENANCE OF SOLVENCY MARGINS Claims multiplied by a factor B and the Net OF INSURERS Incurred claims. I.4.2.1 Every insurer is required to maintain a Life Insurers Required Solvency Margin as per Section 64VA of I.4.2.4 At the end of March 2015, 23 Life insurers the Insurance Act, 1938. Every insurer shall complied with the stipulated solvency ratio of 1.5. maintain an excess of the value of assets over the The information from Shahara Life is awaited. amount of liabilities of not less than an amount prescribed by the IRDA, which is referred to as a TABLE I. 38 NET RETENTIONS (GIC) 2014-15 Required Solvency Margin. The IRDA (Assets, Liabilities and Solvency Margin of Insurers) Domestic Foreign Regulations, 2000 describe in detail the method of Line of Business Business % Business % computation of the Required Solvency Margin. Fire 67.9 92.6 I.4.2.2 In the case of life insurers, the minimum Marine Cargo 84.3 100.0 Required Solvency Margin is rupees fifty crore Marine Hull 68.9 88.7 (rupees one hundred crore in the case of reinsurer) Engineering 79.9 100.0 and arrived at in the manner specified by the Aviation 88.8 85.2 Authority. The insurance Laws(Amendment) Act, Motor 100.0 100.0 2015 specifies a level of solvency margin known as Misc 93.3 100.0 control level of solvency, on the breach of which, the Authority shall direct the insurer to submit a Life 74.3 84.7 financial plan indicating a plan of action to correct Total 88.8 94.5 35ANNUAL REPORT 2014-15 However, as on 31st March, 2014, the solvency operate within the constraints of its financial ratio of Sahara Life was 684%. strength. This is important to maintain the solvency of the insurer and to ensure that the clauses are Solvency Ratio of Non-life insurers: honored as and when they arise. Hence the I.4.2.5 As at 31st March, 2015, out of 22 private Authority has stipulated that every insurer shall sector non-life insurers (including the health obtain the approval of its Board for its reinsurance insurers) 21 insurers have complied with the program. The regulatory framework also provides stipulated Solvency Ratio of 1.50. However, for filing of the reinsurance program for the next Magma HDI General Insurance company Ltd. has financial year with the Authority at least 45 days reported solvency ratio of 1.24. before the commencement of the said year. The insurers are further required to file the treaty slips All the Four public sector insurers complied with or cover notes relating to the reinsurance the stipulated Solvency Ratio of 1.50 as at 31st arrangements with the Authority within 30 days of March, 2015. the commencement of the financial year. These I.4.2.6 As at 31st March, 2015, the specialized measures highlight the importance attached to the insurers, i.e. AIC and ECGC reported a solvency existence of adequate and efficient reinsurance ratio of 3.18 and 6.61 respectively as against 2.60 arrangements for an insurance company. It would and 11.02 as at 31st March, 2014. be recalled that the solvency position of an insurance company is assessed on a “net of re- Reinsurer insurance” basis. I.4.2.7 The national re-insurer, General Insurance I.4.3.3 The Regulations also require that every Corporation of India, reported a solvency ratio of 3.04 as on 31st March 2015 (2.73 on 31st March, insurer should maintain the maximum possible retention commensurate with its financial strength 2014). and volume of business. The guiding principles in I.4.3 Monitoring of Re-insurance drawing up the reinsurance program have been I.4.3.1 The mandate to the Authority in respect of stated as under: reinsurance lies in the provisions of Section 14(1) 1. Maximize retention within the country; and 14(2) Sub Section (f) of the IRDA Act, 1999 as 2. Develop adequate capacity; well as Sections 34F, 101A, 101B and 101C of the Insurance Act, 1938. In addition, the Authority has 3. Secure the best possible protection for the framed regulations pertaining to re-insurance by reinsurance costs incurred; and both life and non-life insurers which lay down the 4. Simplify the administration of business. ground rules for placing re-insurance with the re- I.4.3.4 IRDAI effected amendments to the insurers. Under the provisions of the Insurance Act, Reinsurance Regulations, 2002 and notified the 1938, the General Insurance Corporation of India same in March 2013. The regulations mandated has been designated as the “Indian re-insurer” Insurers/reinsurers to place reinsurance business which entitles it to receive obligatory cessions of with insurers/reinsurers outside India, after taking 5% from all the direct non-life insurers. The limits into consideration their Credit rating, Claims have been laid down in consultation with the experience, Claims paying ability and solvency Reinsurance Advisory Committee. margin. Accordingly, limit on the total reinsurance I.4.3.2 Every insurer needs a comprehensive and which an insurer could place with an efficient re-insurance program to enable it to insurer/reinsurer outside India was prescribed by 36ANNUAL REPORT 2014-15 IRDAI. Further, in respect of reinsurance of Identification Number (UIN) and in 2015-16 the Catastrophe risks, all insurers/reinsurers were Authority has issued 343 UINs to 244 reinsurers mandated to ensure that the reinsurance and 90 Lloyds Syndicates and 9 Incidental arrangements in respect of catastrophe Syndicates. accumulations, using various realistic disaster All Insurers/Reinsurers were directed to strictly scenario testing, are adequate and approved by comply with these guidelines and no their Board of Directors before filing the same is Insurer/Reinsurer can place reinsurance business with the Authority along-with their reinsurance with any entity which is not registered and no program. Unique Identification Number has been allotted by Cross Border Reinsurers IRDAI. I.4.3.5 The Authority, under the powers granted to it The Authority has categorically stated in the under Section 114 (zd) of the Insurance Act, 1938 guidelines that the onus of placing reinsurance has issued guidelines on “Cross Border business with registered cross border reinsurers is Reinsurer”. These guidelines were effective from on the Indian insurers or Indian reinsurers. It will be April 1st, 2012. The guidelines are applicable to the responsibility of Indian insurer or Indian those “Cross Border Reinsurers” who do not have reinsurer to ensure before placing reinsurance any physical presence in India but carry on business that the cross border reinsurer meets the reinsurance business with Indian Insurance requirements as specified by the Authority from Companies. time to time. All the reinsurers are required to provide I.4.4. Insurance Pools information as per format prescribed by the Terrorism Pool Authority along with their audited annual report. It I.4.4.1 The Indian Market Terrorism Risk Insurance was mandated to all the insurer and reinsurer that Pool was formed as an initiative by all the non-life the cross border reinsurers should be legal entity in insurance companies in India in April 2002, after their home country and are regulated and terrorism cover was withdrawn by international supervised by their home supervisors. The reinsurers post 9/11. The Pool has thus completed solvency of the reinsurer should not be lower than 13 years of successful operations. All Indian non- standards prescribed for Indian insurers and their life insurance companies and GIC Re are financial strength, quality of the management and members of the Pool. The Pool is administered by adequacy of their technical reserving GIC Re. The Pool is applicable to insurance of methodologies should be monitored by their home terrorism risk covered under property insurance supervisory Authority. Authority shall register policies. foreign firms domiciled in countries who have either signed DTAA agreements to Tax information I.4.4.2 The limit of indemnity per location has been Exchange Agreement with India as per list enhanced to R1,500 crores w.ef 1st April 2014, maintained with IT Department, Govt. of India and against the previous level of R1000 Crores. The will provide a Unique Identification Number (UIN premium rates have been revised downward under Number) to these reinsurers which will be valid for the Terrorism Pool arrangement w.e.f the same a period of one year. date. I.4.3.6 In the year 2014-15, 238 reinsurers and 87 I.4.4.3 In order to improve the market penetration Lloyds Syndicates where allotted Unique for Terrorism Risk Insurance with better marketing 37ANNUAL REPORT 2014-15 by Brokers / Agents, Brokerage /Agency I.4.4.6 Obligatory Cession to GIC Re for 2015-16 commission of upto 5% on Terrorism premium was 1. The percentage cessions of the sum insured on allowed w.e.f. 01.01.2014 for Terrorism Insurance each General Insurance policy to be reinsured business procured through Brokers/Agents. with the Indian Reinsurer shall be 5% in respect of insurances attaching during the year I.4.4.4 The Pool’s premium income for 2014-15 1st April 2015 to 31st March 2016. was R472.33 crore compared to R471.13 crore in 2013-14. The claims paid by the Pool during 2014-15 2. For the year 2013-14, the obligatory cession were ` 2.58 crore. No major losses were reported to was reduced to 5% on all lines of business as the Pool during 2014-15. against 10% (except motor & health - including Personal Accident & Travel where the rate was I.4.4.5 Obligatory Cession to GIC Re : Act 7.5%) in 2012-13. The rate of obligatory provisions cession is maintained at 5% for the year a) Section 101 A of the Insurance Act 1938 2014-15 and 2015-16 also. stipulates that every insurer shall reinsure with the Indian reinsurer such percentage of the I.4.4.7 Re-insurance Advisory Committee sum insured on each general insurance policy As per Section 101A of the Insurance Act, 1938, as may be specified by the Authority, which are every insurer shall reinsure with the Indian also known as ‘obligatory cessions’ or reinsurer such percentage of the sum insured on ‘statutory cessions’, with the previous approval each general insurance policy as may be specified of the Central Government, after consultation by the Authority, which are also known as with the Reinsurance Advisory Committee ‘obligatory cessions’ or ‘statutory cessions’, with constituted under section 101B of the Act. the previous approval of the Central Government, after consultation with the Reinsurance Advisory b) The Authority may by notification specify the Committee. percentages of the sum insured on each policy to be reinsured with the Indian reinsurer and For this purpose, the Authority may by notification different percentages may be specified for a) specify the percentages of the sum insured on different classes of insurance provided that no each policy to be reinsured with the Indian percentage so specified shall exceed 30 per reinsurer and different percentages may be cent of the sum insured on such policy. specified for different classes of insurance provided that no percentage so specified shall c) Section 101A (4) provides that a notification exceed 30 per cent of the sum insured on such under sub-section (2) of Section 101A of the policy; and b) specify the proportion in which said Insurance Act, 1938 may also specify the terms percentage shall be allocated among the Indian and conditions in respect of any business of re- reinsurer. insurance required to be transacted under this section and such terms and conditions shall be binding on Indian re-insurers and other insurers. 38ANNUAL REPORT 2014-15 TABLE I. 39 MEMBERS SHARE IN INDIAN MARKET TERRORISM RISK INSURANCE POOL 2014-15 2015-16 S.No Member Company Per risk Per risk Share Share Capacity Capacity (in Percent) (in Percent) ( ` In crore) ( ` In crore) 1 General Insurance Corporation of India 237.615 15.841 237.615 15.841 2 National Insurance Co. Ltd. 178.215 11.881 178.215 11.881 3 The New India Assurance Co. Ltd. 237.615 15.841 237.615 15.841 4 The Oriental Insurance Co. Ltd. 178.215 11.881 178.215 11.881 5 United India Insurance Co. Ltd. 188.865 12.591 188.865 12.591 6 Bajaj Allianz General Insurance Co. Ltd. 74.640 4.976 74.640 4.976 7 Bharti AXA General Insurance Co. Ltd. 15.105 1.007 15.105 1.007 8 Cholamandalam General Insurance Co. Ltd. 29.505 1.967 29.505 1.967 9 Future Generali General Insurance Co. Ltd. 15.000 1.000 15.000 1.000 10 Govt. Insurance Fund, Gujarat 15.000 1.000 15.000 1.000 11 HDFC Ergo General Insurance Co. Ltd. 15.105 1.007 15.105 1.007 12 ICICI Lombard General Insurance Co. Ltd. 118.815 7.921 118.815 7.921 13 IFFCO-Tokio General Insurance Co. Ltd. 59.400 3.960 59.400 3.960 14 L&T General Insurance Co. Ltd. 15.105 1.007 15.105 1.007 15 Liberty Videocon General Insurance Co. Ltd. 15.105 1.007 15.105 1.007 16 Magma HDI General Insurance Co. Ltd. 7.500 0.500 7.500 0.500 17 Raheja QBE General Insurance Co. Ltd. 0.750 0.050 0.750 0.050 18 Reliance General Insurance Co. Ltd. 29.700 1.980 29.700 1.980 19 Royal Sundaram Alliance Insurance Co. Ltd. 15.000 1.000 15.000 1.000 20 SBI General Insurance Co. Ltd. 4.995 0.333 4.995 0.333 21 Shriram General Insurance Co. Ltd. 15.000 1.000 15.000 1.000 22 Tata-AIG General Insurance Co. Ltd. 23.760 1.584 23.760 1.584 23 Universal Sompo General Insurance Co. Ltd. 9.990 0.666 9.990 0.666 Total 1,500.000 100.000 1,500.000 100.000 Note: - The share of Members for 2015-16 continues to remain the same as in the expiring year i.e. 2014-15. 39ANNUAL REPORT 2014-15 TABLE I.40 TABLE I. 41 REINSURANCE CEDED OUTSIDE INDIA REINSURANCE PLACED WITHIN INDIA ON INDIAN BUSINESS (Excluding GIC) AND OUTSIDE INDIA AS PER CENT OF GROSS (` crore) DIRECT PREMIUM IN INDIA (Excluding GIC) 2013-14 2014-15 Class Net Net 2013-14 2014-15 Premium Premium Profit Profit Ceded Ceded Ceded Ceded Class Placed Placed Placed In Placed In Outside Outside Fire 1,692.74 -412.49 2,220.44 -1,442.36 India India India India Marine Cargo 299.88 91.93 375.84 -5.33 Fire 31.07 24.64 29.86 28.98 Marine Hull 534.60 -69.54 628.55 -207.02 Marine Cargo 12.21 14.99 9.34 16.90 Motor 55.67 68.75 73.01 -28.36 Marine Hull 32.78 49.68 21.89 59.70 Aviation 301.73 217.27 242.14 98.69 Motor 9.12 0.22 8.35 0.20 Engineering 590.55 -8.83 646.75 3.39 Aviation 48.68 68.56 36.95 57.86 Other 2,822.46 545.10 3,021.31 211.93 Engineering 32.01 24.45 27.24 27.30 Miscellaneous Other 12.90 10.08 12.14 11.09 Total 6,297.62 432.18 7,208.05 -1,369.08 Miscellaneous Total 14.14% 8.82% 12.76% 9.31% TABLE I. 42 NET RETAINED PREMIUM ON INDIAN BUSINESS AS PER CENT OF GROSS DIRECT PREMIUM (Excluding GIC) (In per cent) 2013-14 2014-15 Class Public Private Public Private Total Total Sector Sector Sector Sector Fire 66.13 35.35 55.02 63.76 31.31 50.94 Marine Cargo 83.29 64.49 74.66 84.12 65.41 75.44 Marine Hull 24.11 7.22 22.63 26.15 8.71 24.53 Motor 93.46 90.06 91.72 95.30 89.17 92.04 Engineering 66.89 25.59 54.61 69.24 26.62 55.73 Aviation -11.52 52.16 0.04 10.45 50.77 18.25 Other Misc 83.88 70.3 79.08 86.23 68.16 78.60 Total 82.38 76.28 79.83 84.74 75.24 80.34 I.4.4.8 Formation of Indian Motor Third Party 2. The purpose of creating the Indian Motor Third Declined Risk Insurance Pool (DR Pool): Party Declined Risk Insurance Pool (DR Pool) for commercial vehicles (liability only 1. The Authority vide its order no. insurance) is to ensure equitable and fair IRDA/NL/ORD/MPL/277/12/2011 dated 23rd sharing by all insurers; there are no supply side December 2011 created a declined risk pool for constraints; administering is simple; and also Liability only commercial vehicle third party to bring claims management efficiency. insurance with effect from 1st April 2012. 40ANNUAL REPORT 2014-15 crore (75%). The break-up of premium between public sector companies and private TABLE I.43 NET RETENTIONS OF NON LIFE INSURERS sector companies is as under: AS PER CENT OF GROSS DIRECT PREMIUM 7. The Authority vide its order no (INCLUDING GIC) IRDA/NL/ORD/MPL/251/11/2014 dated 27th (In per cent) November 2014 declared the Ultimate Loss Class 2013-14 2014-15 Fire 69.24 64.54 TABLE I.44 Marine Cargo 85.99 81.59 PREMIUM UNDER DECLINED RISK POOL FOR THE YEAR 2014-15 Marine Hull 31.94 35.47 Motor 100.0 99.67 Premium Ceded to DR Pool (75 %) ( ` crore) Engineering 71.07 71.80 Public Sector 288.31 Aviation 1.00 38.91 Private Sector 29.09 Other Misc 89.43 88.14 TOTAL 317.40 Total 90.32 89.57 3. Under the DR Pool arrangements, each Ratio for the year 2013-14 in respect of company will have its own underwriting manual Declined Risk Pool at 175%, and accordingly, having the underwriting parameters for the pool administrator completed the final accepting or ceding the risk to the pool, which settlement for the year 2013-14 based on the shall be filed with the Authority. ULR at 175%. 4. For the year 2014-15, the ceded risk shall be I.4.4.9 Revision in Motor Third Party Premium shared in the proportion of 20:5:75 by the Rates: ceding company, GIC (obligatory cession, for 1. As per the notification no. IRDA/NL/NTFN/ the year 2014-15: 5%) and the pool MOTP/066/04/2011 dated 15th April 2011, the respectively. Authority had to review the premium rates for 5. The Authority also stipulated that at no instance motor third party liability only cover and adjust shall the insurer refuse to write the risk and any them annually using the formula specified such refusal shall be seen as a violation of the therein. Insurance Act, 1938 and shall invite penalty as 2. Accordingly, the formula has been applied on per the Act. each of the classification codes as contained in 6. The declined risk premium for the year the erstwhile All India Motor Tariff. 2014-15 is `423.20 crore (100%), and the 3. However, looking into the sudden and adverse premium ceded to DR pool for the year impact on the policyholders of increase in 2014-15 is `317.40 crore (75%). The break-up rates, the Authority moderated the rate by of premium between public sector companies increasing or decreasing the rate accordingly and private sector companies is as under: in some of the classes of motor insurance, and `423.20 crore (100%), and the premium ceded notified the revised premium rates for motor to DR pool for the year 2014-15 is `317.40 third party insurance cover for the year 41ANNUAL REPORT 2014-15 2015-16 vide notification no. IRDA/NL/NTFN/ Investments of Life Insurers MOTP/054/03/2015 dated 31st March 2015. I.4.5.3 The various sources of funds available for investment by life insurers can be classified as I.4.5 MONITORING OF INVESTMENTS BY THE funds from traditional products and funds from INSURERS ULIP products. The total amount of funds invested I.4.5.1 All Insurers are required to adhere to the by life insurers as on 31st March 2015 was pattern of investments as stipulated under the R22,47,522 crore. In that, R3,62,740 crore (16.14 investment regulations. The details of investments per cent of total funds) has come from ULIP funds made by life and non-life insurance sector are and the remaining R18,84,782 crore (83.86 per given below: cent) was contributed by traditional products. The Total Investment of the Insurance sector share of ULIP during last four years is facing a I.4.5.2 As on 31st March 2015, the accumulated downward trend and its share last year went down by 0.80% when compared to its previous year. total amount of investments made by the insurance During the year under review, the ULIP Fund has sector was `24,08,236 Crore. During the year, it increased in absolute number by R31,079 crore. TABLE I.45 TOTAL INVESTMENTS OF THE INSURANCE SECTOR (As on 31st March) ( ` crore) Life Non-Life Total INSURER 2014 2015 2014 2015 2014 2015 Public 1574296 1786312 93785 103561 1668081 1889873 (12.21) (13.37) (12.12) (10.42) (12.21) (13.30) Private 383169 461210 46025 57153 429194 518363 (12.07) (20.37) (16.97) (24.18) (12.58) (20.78) Total 1957466 2247522 139809 160714 2097275 2408236 (12.18) (14.82) (13.67) (14.95) (12.28) (14.83) Note: Figures in brackets represent growth in percentage over the previous year has grown by 14.83 per cent. Life insurers continue I.4.5.4 The pattern of investments made by life to contribute a major share of total investments insurers witnessed not much change as on 31st made by the industry with a share of 93.33 per cent March 2015 when compared to 31st March 2014. of total investments. Similarly, public sector Central Government Securities and Approved companies continue to contribute a major share Investments are two major avenues of investments (78.48 per cent) in total investments though by life insurers. investments by private sector insurers are growing at a fast pace in recent years. 42ANNUAL REPORT 2014-15 TABLE I.46 TOTAL INVESTMENTS OF LIFE INSURERS : INSTRUMENT-WISE (As on 31st March) (` crore) 2014 2015 Investments From Amount Percentage Amount Percentage Traditional Products 1 Central Govt. Securities 604651 37.19 722955 38.36 2 State govt. and other approved securities 333951 20.54 430554 22.84 3 Housing & Infrastructure 155026 9.54 174512 9.26 4 Approved Investments 503059 30.94 530568 28.15 5 Other Investments 29118 1.79 26193 1.39 A Total (1+2+3+4+5) 1625804 100.00 1884782 100.00 ULIP Funds 6 Approved Investments 322456 97.22 352371 97.14 7 Other Investments 9205 2.78 10369 2.86 B Total (6+7) 331661 100.00 362740 100.00 Grand Total (A+B) 1957466 2247522 TABLE I.47 INVESTMENTS OF LIFE INSURERS : FUND-WISE (As on 31st March) (` crore) Pension and Life Fund General Annuity & Unit Linked Fund Total of all Funds Insurer Group Fund 2014 2015 2014 2015 2014 2015 2014 2015 LIC 1181000 1359829 298818 343812 94479 82671 1574296 1786312 Private 107225 135480 38761 45660 237183 280069 383169 461210 Total 1288225 1495309 337579 389472 331661 362740 1957466 2247522 (65.81) (66.53) (17.25) (17.33) (16.94) (16.14) (100.00) (100.00) Note: Figures in brackets is percentage of respective funds to the total funds. I.4.5.5 Based on the method of classification of investments. During 2014-15, the share of funds, Life fund contributed R14,95,309 crore Pension/Annuity funds in total investment has (66.53 per cent), Pension and General Annuity & gone up from 17.25 per cent to 17.33 per cent. Group Fund R3,89,472 crore (17.33 per cent) and Further, the shares of Life funds have moved up ULIP fund R3,62,740 (16.14 per cent) in total from 65.81 per cent to 66.53 per cent. 43ANNUAL REPORT 2014-15 Correspondingly, the share of ULIP fund has come net increase in investments was R20,905 crore down from 16.94 per cent to 16.14 per cent. (14.95 per cent growth over previous year). Investments of Non-Life Insurers I.4.5.7 The pattern of investments made remained the same as was in the previous year. As on 31st I.4.5.6 Non-Life insurers have contributed only March 2015, non-life insurers have invested 6.68 per cent of total investments made by the insurance industry. The total amount of R53,734 crore (33.43 per cent) and R42,904 crore investments made by the sector, as on 31st March (26.70 per cent) in Approved Investments and Central Government Securities respectively. 2015, was R1,60,714 crore. During 2014-15, the TABLE I.48 GROWTH OF INVESTMENTS: FUND-WISE (As on 31st March) (` crore) 2014 2015 Fund Total Growth in % Total Growth in % Life 1288225 15.02 1495309 16.08 Pension & General Annuity & Group Fund 337579 19.55 389743 15.37 Traditional (A) 1625804 15.93 1884782 15.93 Unit Linked Funds (B) 331661 -3.17 362740 9.37 Total (A+B) 1957466 12.18 2247522 14.82 TABLE I.49 TOTAL INVESTMENTS OF NON-LIFE INSURERS : INSTRUMENT-WISE (As on 31st March) (` crore) 2014 2015 Pattern of Investments Total % to Fund Total % to Fund Central Govt. Securities 35877 25.66 42904 26.70 State govt. and other approved securities 14326 10.25 17120 10.65 Housing and Loans to State Govt for Housing & FFE 12742 9.11 14834 9.23 Infrastructure Investments 24544 17.56 27277 16.97 Approved Investments 49264 35.24 53734 33.43 Other Investments 3056 2.19 4845 3.01 Total 139809 100.00 160714 100.00 Note : 1. Investments of CHNB , ECGC and AIC of India have not been included 2. FFE : Fire Fighting Equipment 44ANNUAL REPORT 2014-15 I.4.6 Health Insurance Business Trend in Health Insurance Premium CHART I.19 TREND IN HEALTH INSURANCE PREMIUM I.4.6.1 During 2014-15, the gross health insurance premium collected by non-life insurance 20000 companies was `20,096 crore. The premium has 18000 registered 14.87 per cent growth when compared 16000 14000 to previous year’s gross health insurance premium 12000 of `17,495 crore. The four public sector non-life 10000 insurance companies continue to contribute a 8000 6000 major share of health insurance premium at 64 per 4000 cent of total health segment in 2014-15, registering 2000 a marginal increase of 2% of the market share over 0 2010-11 2011-12 2012-13 2013-14 2014-15 the preceding year. Stand-alone health insurers Public Sector NL Insurers Private Sector NL insurers contributed 14 per cent of total health insurance Stand-alone Health Insurers Total Industry premium during 2014-15, which is increased by 2% TABLE I.50 TREND IN HEALTH INSURANCE PREMIUM OVER THE PAST FIVE YEARS (` crore)(% age of market share) Market share 2010-11 2011-12 2012-13 2013-14 2014-15 Public Sector Non-Life Insurers 6689 8015 9580 10841 12882 (61%) (61%) (62%) (62%) (64%) Private Sector Non-Life insurers 2850 3445 4205 4482 4386 (26%) (27%) (27%) (26%) (22%) Stand-alone Health Insurers 1492 1609 1668 2172 2828 (13%) (12%) (11%) (12%) (14%) Total Non-Life Industry 11,031 13,070 15,453 17,495 20,096 Note: Figures in the bracket indicates the market-share of various sectors in total HI Premium. over the previous year’s market share. While there the past five years, there is a marked increase in is a marginal increase in the share of Public Sector the share of individual health insurance premium in and Stand-alone health insurers, there is a drop in total health insurance premium - increasing from the share of Private non-life insurers, whose 35 per cent in 2010-11 to 44 per cent in 2014-15. market share has come down from 26 per cent in On the other hand, the share of Government 2013-14 to 22 per cent in 2014-15. sponsored health insurance business in total health insurance premium has come down from 20 Classification of Health Insurance Business: per cent in 2010-11 to 12 per cent in 2014-15. I.4.6.2 Health insurance business is classified into However, the share of group health insurance Group health insurance (Other than Government business (other than Government business) in Sponsored), Government Sponsored health total health insurance premium remains static insurance and Individual health insurance. Over around 45 per cent for the past five financial years. 45 )erorc ` ni muimerP( ■ ■ ....■.. ■...- •■ • • - - - -ANNUAL REPORT 2014-15 TABLE I.51 CLASSIFICATION OF HEALTH INSURANCE PREMIUM (` crore) Class of Business 2010-11 2011-12 2012-13 2013-14 2014-15 Government 2198 2225 2347 2082 2425 (20%) (17%) (15%) (12%) (12%) Group (other than Govt.) 4952 5948 7186 8058 8899 (45%) (46%) (47%) (46%) (44%) Individual 3881 4897 5919 7355 8772 (35%) (37%) (38%) (42%) (44%) Total 11031 13070 15453 17495 20096 Note: Figures in bracket indicates the share of each class of business in total health insurance premium. CHART I.20 CLASSIFICATION OF HEALTH INSURANCE BUSINESS (IN TERMS OF GROSS PREMIUM) 2010 - 11 2011 - 12 2012 - 13 Government Government Government 17% 15% 20% Individual 35% Individual Individual 37% 38% Group HI Group HI Group HI 47% 45% 46% 2013 - 14 2014 - 15 Government Government 12% 12% Individual Individual 42% 44% Group (other Group HI than Govt.) 46% 44% 46ANNUAL REPORT 2014-15 Number of policies issued & Number of policies underwritten by non-life / standalone persons covered under Health insurance health insurers on commercial lines, covered a business: total of 7.37 crore persons (26 per cent of all I.4.6.3 During 2014-15, the non-life insurance persons covered). The business data reveals that industry has issued around 1.09 crore health there is a significant increase in the number of insurance policies which covered a total number of persons covered through both Government 28.80 crore persons. While Government Schemes and Group Insurance business, while the Sponsored health insurance schemes covered a number of persons covered through individual total population of 21.43 crore (74 per cent of total insurance business registered a marginal decline. number of persons covered), health insurance CHART I.21 NUMBER OF PERSONS COVERED SHARE OF DIFFERENT CLASS OF BUSINESS 2010 - 11 2011 - 12 2012 - 13 Individual Individual Individual 10% 11% 16% Group HI Group HI 14% Group HI 17% 9% Government Government Government 75% 76% 72% 2013 - 14 2014 - 15 Individual Individual 9% 13% Group HI Group HI 17% 15% Government Government 72% 74% 47ANNUAL REPORT 2014-15 TABLE I.52 NUMBER OF PERSONS COVERED UNDER HEALTH INSURANCE (In lakh) Class of Business 2010-11 2011-12 2012-13 2013-14 2014-15 Government 1891 1612 1494 1553 2143 Group (other than Govt.) 226 300 343 337 483 Individual 418 206 236 272 254 Total 2535 2118 2073 2162 2880 Trend in Incurred Claims Ratio witnessed during the preceding three years. I.4.6.4 One of the concerns of health insurance Personal Accident Business: segment has been the persistence of high Incurred I.4.6.5 During 2014-15, the Non-Life Insurance Claims Ratio (ICR), which is witnessing increasing industry has covered a total of 32.31 crore persons trend over the years. While the net ICR was 94 per under the Personal Accident Insurance. Over the cent for 2011-12 and 2012-13, it went up to 97 per previous year, the number of persons covered cent in 2013-14 and it was 101 per cent for the year under PA policies has gone up by 14.85 crore (85 2014-15. per cent growth), mainly on account of 14.07 crore number of persons covered under Pradhan Mantri Among the various class of health insurance Jan-Dhan Yojana (PMJDY) Scheme by M/s HDFC business, the net ICR is high particularly for Group Ergo General Insurance co. Ltd. There is a (Other than Government) business which was decreasing trend in the number of persons covered more than 100 per cent for each of the preceding under Personal Accident insurance by public four years and it is also consistently increasing sector insurers while there is an increasing trend in over the years. During 2014-15, the net ICR of the number of persons covered through private Government sponsored health insurance business sector insurers. has witnessed a significant rise to 108 per cent breaching its average level of 90 per cent During the FY 2014-15, the gross premium income from Personal Accident insurance business was R2153 crore, growing at the rate of 24.59 per cent TABLE I.53 NET INCURRED CLAIMS over previous year. Private sector non-life insurers RATIO OF HEALTH INSURERS contributed 63 per cent of total premium. While (In Per cent) public sector non-life insurers contributed 33 per Class of 2011-12 2012-13 2013-14 2014-15 cent of premium, the rest 4 per cent was Business contributed by the stand-alone health insurers. Government 90% 87% 93% 108% Group (other 100% 104% 110% 116% The Incurred Claims Ratio (ICR) for this line of than Govt.) business was 58.82 per cent for FY 2014-15. Individual 85% 83% 83% 81% Total 94% 94% 97% 101% 48ANNUAL REPORT 2014-15 TABLE I. 54 NUMBER OF PERSONS COVERED UNDER PERSONAL ACCIDENT INSURANCE BUSINESS (In lakh) 2011-12 2012-13 2013-14 2014-15 Public Sector Non-Life Insurers 1578 1265 753 764 Private Sector Non-Life insurers 456 698 972 2437 Stand-alone Health Insurers 18 21 21 30 Total Industry 2052 1984 1746 3231 TABLE I.55 TREND IN PERSONAL ACCIDENT INSURANCE PREMIUM (in ` crore) 2011-12 2012-13 2013-14 2014-15 Public Sector Non-Life Insurers 682 650 614 708 (49%) (41%) (36%) (33%) Private Sector Non-Life insurers 672 918 1,060 1351 (49%) (57%) (61%) (63%) Stand-alone Health Insurers 34 39 55 94 (2%) (2%) (3%) (4%) Total Industry 1,388 1,609 1,729 2153 Note: Figures in Bracket indicates the share of each sector in total PA business Overseas Travel Insurance: share in gross premium, the share of Stand-alone health insurers in this line of business was 4 per I.4.6.6 During 2014-15, non-life insurance sector cent. Though there are ten insurers selling has issued 22.62 lakh overseas travel insurance Overseas Travel insurance policies, only three policies, covering 2.04 crore persons. The Gross insurers namely Tata AIG (35 per cent market Premium income from Overseas Travel Insurance share), Bajaj Allianz (22 per cent) and ICICI business for FY 2014-15 was `465 crore. The Lombard (17 per cent) contributed three-fourth of same was `457 crore during the previous total market share in this line of business. FY 2013-14. In this line of business, the share of Public sector insurers was small at 9 per cent. The Incurred Claims Ratio (ICR) for this line of While Private non-life insurers have 87 per cent business was 50.69 per cent for the FY 2014-15. TABLE I.56 TREND IN OVERSEAS TRAVEL INSURANCE PREMIUM (in ` crore) 2011-12 2012-13 2013-14 2014-15 Public Sector Non-Life Insurers 30 43 46 41 Private Sector Non-Life insurers 295 325 393 402 Stand-alone Health Insurers 17 19 18 21 Total Industry 342 387 457 465 49ANNUAL REPORT 2014-15 BOX ITEM 1 HEALTH INSURANCE AS A CLASS OF BUSINESS Historically Health insurance is recognized as one of the important elements of health care. While the prevalence of health infrastructure and the technological advancements in medical field may offer a succor, they do not completely substitute for health insurance. The insurance sector in India which initially covered certain areas like life, motor, marine insurance is gradually making rapid strides to cover the exclusive health risks contingent on human lives. Health insurance premiums have been registering a significant CAGR of 24.6 per cent in the preceding ten years. The Gross health insurance premium underwritten which was R 2221 crore in the year 2005-06 has increased to R 20,096 crore by 2014-15. The number of lives covered under Health insurance policies during FY 2014-15 was 28.80 crore. As per the Census of India 2011, the population of India was 121.02 crore. As such, assuming that only one policy has been issued to one person, it may be estimated that approximately 24 per cent of India’s total population has been covered under any of the health insurance policies during the FY 2014-15. It is projected that the non life industry has the potential to reach R 4, 80,000 crore of Gross Written Premium by 2025. With about 25% market share in the non life industry at present, the health insurance segment has a significant role in covering various sections of Indian population who are otherwise insurable, but not covered with any health insurance scheme. With a projected insurable population of about 1 billion for health insurance by 2025, the average life expectancy expected to be reaching 74 years by 2020 (from the existing 66 years) and about 75% of medical expenses of average households at present being met out of pocket, it is widely considered that health insurance has a rewarding role to play. Report of the committee on India Vision 2020 constituted by the then Planning Commission in its report in December 2002 has already recognized that health insurance can play an invaluable role in improving health care system in India. With the draft ‘National Health Policy of 2015’ targeting to influence the growth of the private health care industry and medical technologies to ensure alignment with public health goals; it is expected that there will be significant development in the availability of health infrastructure. Availability of health infrastructure also spurs the demand for health insurance. With an increase in the number of non-life insurers, there has been a significant improvement in the product innovation in the health insurance segment. Innovation in product development also offers ample opportunity to various categories of the population to get covered with much needed and specific health insurance solutions. Products are being brought out by various players for various non communicable diseases such as diabetes, cancer etc. The demand for specific health insurance solutions also leads to product innovation, which in turn enhances the penetration of health insurance. During the year 2014-15, under various Governments sponsored health insurance schemes (including RSBY) 21.25 crore lives (provisional figures) were covered. This is a potential market base down the line. When income earning capacity of these persons improves they will turn as the potential market segment to buy the voluntary insurance from the insurance companies. Under these circumstances; keeping in view both the need and the potentiality of the sector, Insurance Laws (Amendment) Act, 2015 recognized Health Insurance as a class of business enabling the incorporation of standalone health insurance companies. Section (6) (c) of the Act defined health insurance business as ‘effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient travel cover and personal accident cover'. It is a milestone for the Indian Insurance Business and to all the stakeholders to recognize health insurance as a standalone class. Recognition of health insurance as a standalone class of business is sure to usher in an era of improving an access to the health services to the entire range of population, thereby reducing the share of ‘out of pocket’ expenses in the overall expenses incurred towards health expenses. Recognizing health insurance as a class may result in a number of players entering this field as standalone health insurers. Insurance being the business of large numbers, it is essential that there is a demand from a wide range of the targeted population to enable the insurers to offer the range of products that cater to their health insurance needs. Availability of a number of players who offer health insurance solutions also enhances health insurance awareness leading to a reasonable demand that in turn helps in offering health insurance products at economical prices. Incidentally, the Government has also increased the maximum Foreign Direct Investment cap to 49% in the year 2014-15. This increase in FDI cap, coupled with recognizing Health Insurance as a special class, is likely to attract a number of players offering a range of health insurance solutions to the Indian insuring public. 50ANNUAL REPORT 2014-15 Domestic Travel Insurance: health insurance premium. On the other hand, the health insurance premium from 8 sister States of I.4.6.7 The gross premium income from Domestic North Eastern India (including the state of Sikkim) Travel insurance business was R16.06 crore was only R158 crore (0.79 per cent) for 2014-15. during FY 2014-15. While none of the stand-alone health insurers sell domestic travel insurance Channel wise distribution of Health insurance policies, this line of business has been generated premium by six private non-life insurers and one public I.4.6.9 Among the various channels of distribution, sector insurer namely National Insurance individual agents continue to contribute a major company. Two private insurers namely ICICI share of total health insurance premium at 35 per Lombard and TATA AIG hold major market share in cent. Their share in individual health insurance this line of business at 54 per cent and 44 per cent premium was still higher at 70 per cent. respectively. During 2014-15, the industry has issued 14 lakh insurance policies covering 14 lakh “Direct sales –other than online” is the second individuals. major channel for distribution of health insurance business. This channel contributed 29 per cent in The ICR for this line of business for the entire total health insurance premium. The share of this industry was 1.14 per cent for FY 2014-15. channel was very high at 45 per cent in group State-wise distribution of health insurance health insurance premium. business Another important channel for distribution of health I.4.6.8 State-wise distribution of health insurance insurance business is Brokers, who contributed 26 business has shown much skewed distribution of per cent in total health insurance premium. Here health business across various States & Union again, the share of Brokers was high at 43 per cent territories of India. While five states namely in group health insurance premium. Maharashtra, Tamil Nadu, Karnataka, Delhi UT and Gujarat contributed 71 per cent of total health Bancassurance contributed 7 per cent of total insurance premium, the rest 31 States/UTs health insurance premium and Online sale of contributed 29 per cent of total Health insurance health insurance policies contributed 1 per cent of premium. The state of Maharashtra alone total health insurance premium. contributed R6575 crore (33 per cent) of total TABLE I.57 TREND IN DOMESTIC TRAVEL INSURANCE GROSS PREMIUM (in ` crore) 2011-12 2012-13 2013-14 2014-15 Public Sector Non-Life Insurers 0.03 0.04 0.03 0.01 Private Sector Non-Life insurers 14.22 15.43 12.32 16.05 Stand-alone Health Insurers 0.0 0.0 0.0 0.0 Total Industry 14.25 15.47 12.35 16.06 51ANNUAL REPORT 2014-15 TABLE I.58 SHARE OF TOP 5 STATES IN HEALTH INSURANCE PREMIUM FOR FY 2014-15 Group Business Government Business (other than RSBY & (only of RSBY & Individual Business Total HI Business Govt Sponsored Other Govt Sponsored Schemes) Schemes) State/ UT % age share % age share % age share % age share (Amount in (Amount in (Amount in (Amount in in National in National in National in National ` Crore) ` Crore) ` Crore) ` Crore) premium premium premium premium Maharashtra 3,468 39% 750 31% 2,357 27% 6,575 33% Tamil Nadu 1,237 14% 482 20% 768 9% 2,487 12% Karnataka 1,521 17% 92 4% 509 6% 2,123 10% Delhi 853 10% 7 0% 923 11% 1,783 9% Gujarat 123 1% 69 3% 1,140 13% 1,331 7% Rest of India 1,696 19% 1,026 42% 3,076 35% 5,798 29% Total 8,898 100% 2,425 100% 8,772 100% 20,096 100% TABLE I.59 SHARE OF VARIOUS CHANNELS OF DISTRIBUTION - NUMBER OF POLICIES ISSUED AND AMOUNT OF PREMIUM FOR FY 2014-15 Total Individual Business Group Business (Individual + Group) Name of the Channel No. of policies Gross No. of policies Gross No. of policies Gross Issued Premium Issued Premium Issued Premium Brokers 3% 3% 7% 43% 3% 26% Corporate Agent - Banks 15% 12% 52% 4% 16% 7% Corporate Agent - 2% 4% 11% 1% 3% 2% Other than Banks Direct Sale - Online 2% 3% 0% 0% 2% 1% Direct Sale - Other than Online 9% 8% 17% 45% 9% 29% Individual Agents 69% 70% 13% 8% 67% 35% Micro-insurance Agents 0.005% 0.000% 0% 0.008% 0.013% 0.004% Total of all channels 100% 100% 100% 100% 100% 100% 52l In terms of number of claims settled, 65 per cent CHART I.22 SHARE OF STATES IN of the total claims were settled by cashless TOTAL HEALTH INSURANCE PREMIUM FY 2014-15 mode. The remaining 35 per cent of the claims are settled through reimbursement mode. l The share of cashless claims settled in total number of claims settled is high at 82 per cent in Rest of India 29% Maharashtra case of in-house settlement, whereas in case of 33% TPA the same is 52 per cent. Gujarat l The number of claims pending at the end of the 7% Delhi Tamil Nadu 9% 12% year at 6.50 lakh is much lower than the number Karnataka of claims pending at the beginning of the year at 10% 10.07 lakh indicating improvement in claims The following are the observations from the service of insurers. analysis of table Nos. I.60, I.61, I.62. l During the year, insurers have repudiated 8 per l During the FY 2014-15, the non-life insurance cent of the number of claims handled. Claims sector has settled 92.36 lakh number of health repudiation was high for benefit based policies insurance claims and paid an amount of at 22 per cent. While insurers have repudiated R18,223 crore towards health insurance 13 per cent of claims submitted under claims. reimbursement, they have repudiated only 5 l Among them, 55 per cent of the claims were per cent of claims submitted under cashless settled through TPAs and the balance were claims. settled through in-house. CHART I.23 CONTRIBUTION OF VARIOUS CHANNELS IN HI PREMIUM 70% 60% 50% 40% 30% 20% 10% 0% Premium - Individual Premium - Group total business Business Business Brokers Corporate Agent - Banks Corporate Agent - Other than Banks Direct Sale - Online Direct Sale - Other than Online Individual Agents lennahc hcae fo noitubirtnoc ega %( )muimerp latot ni ANNUAL REPORT 2014-15 ■ ■ ■ ■ ■ ■ 53ANNUAL REPORT 2014-15 HEALTH INSURANCE CLAIMS DEVELOPMENT DURING 2014-15 TABLE I. 60 CLAIMS HANDLED THROUGH TPAs (Numbers in Actual) (Amount in ` Lakh) Cashless Reimbursement Benefit Based Total Particulars Number Amount Number Amount Number Amount Number Amount Claims pending 2,14,691 25,957 1,41,908 37,705 162 60 3,56,761 63,722 at the beginning of the period New claims 29,48,225 8,93,386 27,43,720 9,05,460 1,108 195 56,93,053 17,99,041 registered during the period Claims settled 26,81,472 6,67,282 24,38,734 6,34,613 611 144 51,20,817 13,02,039 during the period Claims repudiated 1,87,695 76,773 3,05,101 1,08,203 476 76 4,93,272 1,85,052 during the period Claims pending 2,93,749 1,75,288 1,41,793 2,00,348 183 35 4,35,725 3,75,672 at the end of the year TABLE I. 61 CLAIMS HANDLED DIRECTLY BY THE INSURERS IN - HOUSE (Numbers in Actual) (Amount in ` Lakh) Cashless Reimbursement Benefit Based Total Particulars Number Amount Number Amount Number Amount Number Amount Claims pending 5,74,592 19,037 73,570 82,394 1,873 4,551 6,50,035 1,05,982 at the beginning of the period New claims 30,93,065 2,53,136 9,40,609 3,72,422 19,122 32,057 40,52,796 6,57,615 registered during the period Claims settled 33,61,565 2,15,294 7,39,047 2,81,385 14,351 23,575 41,14,963 5,20,253 during the period Claims repudiated 1,68,769 36,656 2,00,771 1,03,541 4,382 6,992 3,73,922 1,47,188 during the period Claims pending 1,37,323 20,223 74,361 69,891 2,262 6,040 2,13,946 96,155 at the end of the year 54ANNUAL REPORT 2014-15 TABLE I. 62 CLAIMS HANDLED DIRECTLY BY THE INSURERS (BOTH THROUGH TPAs AND IN-HOUSE) (Numbers in Actual) (Amount in ` Lakh) Cashless Reimbursement Benefit Based Total Particulars Number Amount Number Amount Number Amount Number Amount Claims pending 7,89,283 44,994 2,15,478 1,20,099 2,035 4,611 10,06,796 1,69,704 at the beginning of the period New claims 60,41,290 11,46,522 36,84,329 12,77,882 20,230 32,252 97,45,849 24,56,656 registered during the period Claims settled 60,43,037 8,82,576 31,77,781 9,15,998 14,962 23,719 92,35,780 18,22,293 during the period Claims repudiated 3,56,464 1,13,428 5,05,872 2,11,744 4,858 7,068 8,67,194 3,32,240 during the period Claims pending 4,31,072 1,95,512 2,16,154 2,70,239 2,445 6,076 6,49,671 4,71,827 at the end of the year HEALTH INSURANCE - AGING OF SETTLED CLAIMS DURING 2014-15 TABLE I. 63 AGING OF CLAIMS HANDLED THROUGH TPAs (Numbers in Actual) (Amount in ` Lakh) Claims Cashless Reimbursement Benefit Based Total pending for Number Amount Number Amount Number Amount Number Amount < 1 Month 21,90,358 4,95,263 18,31,059 3,34,443 350 54 40,21,767 8,29,760 1 to 3 months 4,07,339 1,42,313 4,10,911 1,75,762 179 39 8,18,429 3,18,113 3 to 6 months 60,796 22,712 1,49,255 94,191 61 37 2,10,112 1,16,940 6 to 12 months 21,095 5,884 37,537 25,505 15 11 58,647 31,401 1 to 2 years 1,474 936 7,203 3,461 3 1 8,680 4,398 > 2 years 410 175 2,769 1,252 3 1 3,182 1,428 Total 26,81,472 6,67,282 24,38,734 6,34,614 611 144 51,20,817 13,02,040 55ANNUAL REPORT 2014-15 TABLE I. 64 AGING OF CLAIMS HANDLED BY THE INSURERS IN-HOUSE (Numbers in Actual) (Amount in ` Lakh) Claims Cashless Reimbursement Benefit Based Total pending for Number Amount Number Amount Number Amount Number Amount < 1 Month 29,20,013 1,93,826 5,96,635 2,31,219 10,512 10,421 35,27,160 4,35,465 1 to 3 months 3,75,939 17,735 1,01,294 32,540 2,508 8,193 4,79,741 58,468 3 to 6 months 63,262 2,798 32,830 11,649 953 3,621 97,045 18,068 6 to 12 months 2,210 883 6,519 4,572 306 1,121 9,035 6,577 1 to 2 years 109 41 1,096 506 54 201 1,259 748 > 2 years 32 12 673 898 18 18 723 927 Total 33,61,565 2,15,294 7,39,047 2,81,385 14,351 23,575 41,14,963 5,20,254 TABLE I. 65 AGING OF CLAIMS HANDLED DIRECTLY BY THE INSURERS (BOTH THROUGH TPAs AND IN-HOUSE) (Numbers in Actual) (Amount in ` Lakh) Claims Cashless Reimbursement Benefit Based Total pending for Number Amount Number Amount Number Amount Number Amount < 1 Month 51,10,371 6,89,088 24,27,694 5,65,662 10,862 10,475 75,48,927 12,65,226 1 to 3 months 7,83,278 1,60,047 5,12,205 2,08,302 2,687 8,232 12,98,170 3,76,581 3 to 6 months 1,24,058 25,510 1,82,085 1,05,840 1,014 3,658 3,07,157 1,35,008 6 to 12 months 23,305 6,767 44,056 30,078 321 1,132 67,682 37,977 1 to 2 years 1,583 977 8,299 3,967 57 202 9,939 5,146 > 2 years 442 186 3,442 2,150 21 19 3,905 2,355 Total 60,43,037 8,82,576 31,77,781 9,15,999 14,962 23,719 92,35,780 18,22,293 The following are the details of analysis of table As on 31st March, 2015 there are thirty TPAs Nos. I.63, I.64, I.65. registered with the Authority rendering health services in the insurance industry. The physical l 82 per cent of claims were settled within 1 presence of TPAs was also augmented by opening month of submission of claim. branches at various locations and during the year l Only in 0.15 per cent of the cases, claims TPAs have 161 branch offices in the country. settlement delayed by more than one year. The number of network hospitals as at 31st March, I.4.6.10 Third Party Administrators (TPAs) 2015 are increased to 50,118 as against 40,521 network hospitals as at 31st March, 2014. The During the year 2014-15, certificate of registration enrollment of more number of network hospitals was granted to only one TPA, namely Health indicates the efforts of the TPA industry to facilitate Insurance TPA of India Ltd. and the registrations accessing of health services with ease by various were renewed for fourteen TPAs, the details of which categories of health insurance policyholders. are given in Table I.66 As the health insurance segment showed 56ANNUAL REPORT 2014-15 significant growth during the financial year obligations. The regulations require insurers to 2014-15, the number of claims serviced by TPAs underwrite business in these segments based on also increased. During 2014-15, all 30 TPAs the year of commencement of their operations and settled 51,20,817 claims, of which 66.48% claims the applicable targets are linked to the year of were settled within one month. operations of each insurer. For meeting these obligations, the regulations further provide that, if TABLE I.66 an insurance company commences operations in NAMES OF TPAs WHOSE the second half of the financial year and is in REGISTRATIONS WERE RENEWED DURING 2014-15 operations for less than six months as at 31st Sl. March of the relevant financial year (i) no rural or Name of TPA No. social sector obligations shall be applicable for the 1 Medi Assist India TPA Pvt. Ltd. said period; and (ii) the annual obligations as 2 Raksha TPA Pvt. Ltd. indicated in the Regulations shall be reckoned from 3 MD India Healthcare (TPA) Services (Pvt.) Ltd. the next financial year which shall be considered as 4 Safeway TPA Services Pvt. Ltd the first year of operations for the purpose of compliance. In cases where an insurance 5 E Meditek (TPA) Services Ltd. company commences operations in the first half of 6 Medicare TPA Services (I) Pvt. Ltd. the financial year, the applicable obligations for the 7 Paramount Health Services (TPA) Pvt. Ltd. first year shall be 50 per cent of the obligations as 8 Vidal Health TPA Private Limited specified in these Regulations. 9 Family Health Plan (TPA) Ltd. Fulfillment of Obligations of life insurers 10 Focus Health Services TPA Pvt. Ltd. during 2014-15 11 Heritage Health TPA Pvt. Ltd. Rural Sector Obligations 12 Med Save Health Care TPA Ltd. I.4.7.2 During 2014-15, all the twenty three private 13 Anmol Medicare TPA Ltd. sector life insurance companies had fulfilled their 14 Alankit Health Care TPA Limited rural sector obligations. The number of policies underwritten by them in the rural sector as a I.4.7 BUSINESS IN THE RURAL AND SOCIAL percentage of the total policies underwritten in the SECTORS year 2014-15 was as per the obligations applicable Gist of existing Regulations to them. I.4.7.1 The Regulations framed by the Authority on I.4.7.3 The lone public sector insurer, Life Insurance Corporation of India was compliant with the obligations of the insurers towards rural and its obligations in the rural sector, by writing a higher social sector stipulated targets to be fulfilled by percentage of policies in rural sector than the insurers on an annual basis. In terms of these prescribed 25 per cent for 2014-15. regulations, insurers are required to cover year wise prescribed targets (i) in terms of number of I.4.7.4 The life insurers underwrote 65.34 lakh lives under social obligations; and (ii) year wise policies in the rural sector, viz., 25.3 percent of the prescribed targets in terms of percentage of new individual policies (258.74 lakh policies) underwritten by them in 2014-15. LIC underwrote policies to be underwritten and percentage of total 25.65 per cent of the new policies and private gross premium income written direct by the life and insurers underwrote 23.9 per cent of their new non-life insurers respectively under rural individual policies in the rural sector. 5776.I ELBAT 51-4102 YF EHT ROF ATAD SMIALC -APT gnidnatstuo smialC )C( + )B( + )A(smialC latoT raey eht gnirud deviecer smialC raey eht gnirud denepo-er smialC raey eht fo gninnigeb eht ta )D( ) C ( )B( )A( latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC 418,94,06 898,68,82 619,26,13 071,59,55 871,07,62 299,42,92 38879 05647 33232 167,65,3 070,24,1 196,41,2 )ESIW NOITARUD( RAEY EHT GNIRUD DELTTES SMIALC shtnoM 6 > shtnoM 6 =< 3> shtnoM 3 => ot 1> htnoM 1 =< latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC 905,07 035,74 979,22 211,01,2 613,94,1 697,06 924,81,8 090,11,4 933,70,4 767,12,04 904,13,81 853,09,12 )71.1( )56.1( )37.0( )74.3( )71.5( )29.1( )35.31( )42.41( )88.21( )84.66( )44.36( )52.96( raey eht fo dne eht ta gnidnatstuO smialC raey eht gnirud detaiduper smialC deltteS smialC latoT )F-E-C+B+A(=)G( )F( )E( latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC latoT tnemsrubmieR sselhsaC 527,53,4 679,14,1 947,39,2 272,39,4 775,50,3 596,78,1 718,02,15 543,93,42 274,18,62 )02.7( )29.4( )92.9( )51.8( )85.01( )39.5( )46.48( )05.48( )87.48( .elbat eht fo 'D' nmuloC fo latot eht ot desolc / detcejer / delttes smialc fo )tnec rep ni( oitar eht etacidni stekcarb eht ni erugiF ANNUAL REPORT 2014-15 58ANNUAL REPORT 2014-15 TABLE I.68 TPA INFRASTRUCTURE FOR F.Y. 2014-15 No. of No.of No. of * Total No.of Manpower Hospitals Hospitals Hospitals No. of Branches at the end in the added to withdrawn / Hospitals at the end of the year Sl. Network the Network removed in the of the year Name of the TPA No at the during from Network beginning the year Network at the end of the year during of the year the year 1 Alankit Health Care TPA Ltd. 4008 9 8 4009 10 33 2 Anmol Medicare TPA Ltd. 1162 958 93 148 1 28 3 Anyuta TPA in Health Care Pvt. Ltd. 86 22 0 108 3 15 4 Dedicated Healthcare Services 3457 294 255 3496 23 404 TPA (India) Pvt. Ltd. 5 E Meditek (TPA) Services Ltd. 5242 212 36 5418 82 768 6 East West Assist TPA Pvt. Ltd. 4126 24 5 4145 5 92 7 Ericson TPA Healthcare Pvt. Ltd. 2902 362 0 3264 0 44 8 Family Health Plan (TPA) Ltd. 4162 551 150 4563 18 682 9 Focus Health Services TPA Pvt. Ltd. 1482 132 15 1599 2 14 10 Genins India TPA Ltd. 3676 206 40 3842 19 246 11 Good Health TPA Services Ltd. 4647 416 346 4717 13 285 12 Grand Health Care TPA 1631 51 0 1682 10 75 Services Pvt Ltd 13 Happy Insurance TPA Services 808 438 0 1246 2 10 14 Health India TPA Pvt. Ltd. 3574 592 52 4114 38 749 15 Heritage Health TPA Pvt. Ltd. 3281 766 16 4031 16 406 16 MD India Healthcare 8804 706 115 9395 72 2512 Services (TPA) Pvt. Ltd. 17 Med Save Health Care TPA Ltd. 6131 720 18 6833 55 330 18 Medi Assist India TPA Pvt. Ltd. 5162 664 432 5394 41 2628 19 Meidcare TPA Services (I) Pvt. Ltd. 3795 794 193 4396 18 337 20 Paramount Health 5181 5765 300 10646 22 1375 Services (TPA) Pvt. Ltd. 21 Park Mediclaim TpA Pvt Ltd 1893 33 4 1926 5 124 22 Raksha TPA Pvt. Ltd. 3229 378 40 3567 45 550 23 Rothshield Healthcare (TPA) 1898 235 0 2133 8 30 Services Ltd 24 Safeway TPA Services Pvt. Ltd. 3928 358 15 4271 5 148 25 Spurthi Meidtech (TPA) 3444 260 1 3704 5 48 Solutions Pvt. Ltd. 26 Sri Gokulam Health 1409 189 0 1598 6 26 Services TPA (P) Ltd. 27 United Healthcare Parekh TPA Pvt. Ltd. 3260 836 41 4055 4 178 28 Vidal Health TPA Pvt. Ltd. 6013 185 52 6146 16 1287 29 Vipul Med Corp TPA Private Ltd. 6471 1205 136 7676 26 630 30 Health Insurance TPA of India Ltd. 0 0 0 0 1 13 TOTAL 40521 10238 782 50118 161 4746 * Hospitals may be repeated under different TPAs 59ANNUAL REPORT 2014-15 Social Sector Obligations financial year 2014-15. Public and Private insurers underwrote 11.96 per cent and 11.98 per cent of I.4.7.5 All the 23 private life insurers had fulfilled their gross direct premium respectively in the rural their social sector obligations during 2014-15. The sector. number of lives covered by them in the Social Sector was above that stipulated in the IRDA Social Sector Obligations (Obligations of Insurers to Rural or Social Sectors) I.4.7.11 All other twenty two private non life Regulations 2002. insurance companies were compliant with the I.4.7.6 LIC was compliant with its social sector social sector obligations during the financial year obligations, having covered more number of lives 2014-15. The number of lives covered by them in (205.96 lakhs) than the prescribed 20 lakh lives as the social sector was higher than the regulations obligations for 2014-15. Private Life insurers had prescribed. covered 97.40 lakh social lives. I.4.7.12 The four public sector insurers compiled Obligations of non-life insurers with the social sector obligations for the financial year 2014-15. With respect to the public sector Rural Sector Obligations insurers, their obligations for the financial year I.4.7.7 Except Max Bupa, All the twenty one 2014-15 were same as those applicable for in the private non life insurance companies were financial year 2012-13 and 2013-14 in terms of compliant with their rural sector obligations in the number of lives covered by the respective insurers financial year 2014-15. The gross direct premium in the social sector or 5.50 lakh lives whichever is underwritten by them in the said sector, as a higher percentage of total premiums underwritten by them in the financial year 2014-15, was above the I.4.7.13 In the social sector 2832.56 lakh lives was prescribed stipulations. covered during the financial year 2014-15. The contribution of private sector was 262.03 lakh lives I.4.7.8 The Gross Direct Premium underwritten by and public sector accounted for 2570.53 lakh lives. Max Bupa in the Rural Sector is 3.93% of Total Gross Premium Underwritten by them in the I.4.8 FINANCIAL REPORTING AND ACTUARIAL financial year 2014-15. The Authority is initiating STANDARDS penal action against this insurer for the non- Appointed Actuary System compliance under section 105A of the insurance I.4.8.1 The Appointed Actuary system is in place for Act,1938. more than a decade in Indian Insurance Industry. I.4.7.9 All the public sector insurers compiled with Every Insurer is required to appoint an actuary the rural sector obligations for the financial year known as Appointed Actuary. The Appointed 2014-15. With respect to public sector insurers, Actuary is responsible for rendering actuarial their obligations was seven per cent of the advice to the management of the insurer, in quantum of insurance business written by them in particular in the areas of product design and the financial year 2014-15 pricing. Insurance contract wording, investments and reinsurance; ensuring solvency of the I.4.7.10 All the non life insurers underwrote a gross company and complying with the Authority’s direct premium of R9602 crore in the rural sector directions from time to time. The Appointed Actuary viz. 11.97 per cent of the gross direct premium has access to all the information or documents in underwritten ( R80243 crore) by them in the possession or under control of the insurer if such 60ANNUAL REPORT 2014-15 access is necessary for the proper and effective business effectively, consequently improving on performance of the functions and duties of the insurance penetration and density. Appointed Actuary. I.4.9.4 The requirement was also in line with the I.4.9 ANTI-MONEY LAUNDERING/ COUNTER CBDT notification S.O. 1214 (E) dated 26th May, FINANCE OF TERRORISM (AML/CFT) 2011 amending Rule 114B of the Income-tax PROGRAMME Rules, 1962, inserting clause (q) which requires every person to quote his permanent account AML/CFT GUIDELINES number (PAN) in all documents pertaining to the I.4.9.1 Empowered by the Prevention of Money transactions where there is a payment of an Laundering Act (PMLA) and the rules framed there amount aggregating to fifty thousand rupees or under, the AML/CFT guidelines (the guidelines) to more in a year as life insurance premium to an the insurance sector were first issued in March insurer as defined in clause (9) of section 2 of the 2006. Since then the insurance sector has been Insurance Act 1938 (4 of 1938). working towards an effective AML/CFT regime in India. The guidelines emphasize the importance of I.4.9.5 In order to have tighter controls as regards the customer due diligence processes, reporting ‘acceptance of premium in cash’, the IRDAI has obligations and record keeping requirements as mandated stringent controls like the requirement of required under the PMLA. verification of the PAN number so obtained from the customer. Insurers are also required to lay I.4.9.2 Insurers have laid down systems and down proper mechanisms to check any kind of processes towards implementation of various attempts to avoid disclosure of PAN details. In case requirements under the broad oversight of their of possible attempts to circumvent the Board through the audit committee. There is a requirements, insurers are directed to report the regular review of the effectiveness of the systems same as suspicious activity to Financial through the insurer’s internal audit/inspection Intelligence Unit India (FIU-IND). departments. Compliance with the guidelines is also monitored by IRDAI through both on-site and AML/CFT guidelines applicable to non-life off-site processes. insurance companies I.4.9.6 Considering the fact that AML/CFT Cash Acceptance Threshold requirements applicable to non-life insurance I.4.9.3 The insurance sector is very similar to the companies differ from those applicable to life banking sector in that both are vehicles and insurance companies, the guidelines have been instrumentalities for encouraging savings amongst modified to meet the nuances of typical the people in the country. The insurance laws in the characteristics of the non-life insurance business. country also mandate that a certain proportion of Various related aspects were widely deliberated every company’s business must emanate from the with all the non-life insurance companies through rural sector. Given the vast number of villages in the General Insurance Council. A consolidated India, compared to which the spread of banks is circular on various stipulations/requirements of limited, to remove the hindrances posed by the AML/CFT framework, as applicable to non-life restrictions on acceptance of cash, the IRDAI had insurance companies, was issued in February aligned the stipulation with that prevalent in the 2013. Through this circular, insurers have been banking sector. This was also aimed at advised to apply the AML/CFT requirements based encouraging insurance companies to tap rural on their risk assessment of each of the product’s 61ANNUAL REPORT 2014-15 profile. The earlier exemption given to standalone I.4.9.10 IRDAI has initiated regular interaction with medical and health insurance policies now stands the Financial Intelligence Unit-India (FIU-IND) and withdrawn. actively took part in the working group constituted with industry representatives on finalization of International Cooperation/Information Sharing report on the ‘Red Flag Indicators for Insurance I.4.9.7 Post India’s membership into the Financial Sector’. IRDAI is also part of the Department of Action Task Force (FATF) in June 2010, India has Financial Services, initiative of building Central been working on the Action Plan committed to KYC Registry. FATF Secretariat. The IRDAI has accomplished I.4.9.11 IRDAI and FIU-IND signed a various action points committed. Effective May Memorandum of Understanding (MoU) on Mutual 2013, IRDAI is a signatory to the Multilateral Cooperation on 29th January 2014 as part of Memorandum of Understanding (MMOU) of continued coordinated efforts in effective International Association of Insurance Supervisors implementation of requirements of the Prevention (IAIS) which provides an international platform for of Money Laundering Act and the rules framed cooperation and sharing of information. Further, thereunder. the IRDAI (Sharing of Confidential Information Concerning Domestic or Foreign Entity) According to the MoU, IRDAI and FIU-IND will Regulations, 2013 are in place which provides for cooperate with each other in areas of mutual the manner in which / bodies with which interest including the following: confidential information can be shared with other a) Sharing of intelligence and information regulatory bodies. available in their respective databases. Coordination with various agencies/ b) Laying down procedure and manner in which departments the reporting entities report to FIU-IND under I.4.9.8 IRDAI is in active coordination with various the PML (Maintenance of Records) Rules. agencies/departments in ensuring effective implementation of AML/CFT regime in India and is c) Conducting outreach and training for reporting part of the Steering Committee and Core Working entities. Group for Anti-Money Laundering constituted by d) Upgradation of AML/CFT skills reporting the Department of Revenue. IRDAI is also part of entities regulated by IRDAI. the Core Working Group (CWG) constituted by the Department of Economic Affairs (FATF Cell) for e) Assessment of Anti-Money laundering/ implementation of revised recommendations of Combating Financing of Terrorism (AML/CFT) FATF. risks and vulnerabilities in the insurance sector. I.4.9.9 In addition, the IRDAI is also actively associated with the Eurasian Group on Combating f) Identification of red flag indicators for Money Laundering and Financing of Terrorism Suspicious Transaction Reports (STRs) in the (EAG), a FATF style regional body. The IRDAI had insurance sector. actively participated in the 17th EAG Plenary and g) Supervising and monitoring the compliance of Working Group meetings held in New Delhi in reporting entities with their obligations under November 2012 and the project of ‘best practices PMLA. paper on information exchange’ has been assigned to India. 62ANNUAL REPORT 2014-15 h) Compliance with each other’s obligations and oilseeds and actuarial rates were charged for under the relevant international standards. annual commercial and horticultural crops. Premium subsidy of 10% was allowed for small and I.4.10 CROP INSURANCE: marginal farmers, shared equally by Central and The various flagship programmes of AIC and State Government. However, some State and performance under such programmes are detailed Union Territory Governments were also providing as under:- higher subsidy to small and marginal farmers and subsidy to other farmers. National Agricultural Insurance Scheme (NAIS): I.4.10.3 During Kharif 2014 season under NAIS, I.4.10.1 The Scheme was introduced during Rabi 0.97 crore farmers spread over 216 Districts of 10 1999-2000 season replacing Comprehensive Crop States/UTs were covered insuring 1.15 crore Insurance Scheme (CCIS). The Scheme was hectare with sum insured of R24387.84 crore with implemented by Agriculture Insurance Company of gross premium of R844.65 crore. India limited, on behalf of Ministry of Agriculture. I.4.10.4 Since introduction in 1999 till Kharif 2014 The main objective of the Scheme was to protect season, NAIS covered about 23.33 crore farmers the farmers against the losses suffered by them insuring 34.85 crore hectare area for sum insured due to crop failure on account of natural calamities, of R365389.75 crore against premium of such as drought, flood, hailstorm, cyclone, fire, R11026.18 crore. Claims amounting to R35692.08 pest/ diseases, etc., so as to indemnify the losses crore out of the reported claims of R37050.74 crore and restore their credit worthiness for the ensuing have so far been settled benefitting 6.44 crore season. The Scheme was available to all the farmers. Claims figure are likely to increase as farmers both, loanee and non loanee irrespective some claims for Kharif 2014 season have yet to be of the size of their holding. The Scheme envisages finally settled. coverage of all crops including cereals, millets, pulses, oilseeds and annual commercial and I.4.10.5 The Government of India withdrew this horticultural crops in respect of which past yield Scheme from Rabi 2013-14 season and data is available. introduced National Crop Insurance Programme (NCIP). However, GOI continued NAIS in 2015-16 I.4.10.2 As per provisions of NAIS, the flat and on request from State/UT Governments. capped premium rates were charged for food crops TABLE I.69 NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) (In R lakh) No. of Farmers S.No. Season Sum Insured Premium Claims Reported Insured 1 Rabi 2011-12 5239299 1128393.63 25767.81 54320.16 2 Kharif 2012 10649354 2719906.05 87874.18 278578.90 3 Rabi 2012-13 6141677 1571008.05 44769.98 205254.95 4 Kharif 2013 9749600 2900218.30 97752.19 310027.16 5 Rabi 2013-14 3973588 1255204.10 29752.22 104275.74 6 Kharif 2014 9683529 2438783.90 84465.84 289683.52 63ANNUAL REPORT 2014-15 National Crop Insurance Programme (NCIP): in case of severe calamities; threshold yield based on average yield of past seven years, excluding up I.4.10.6 The most important change is the to two years of declared natural calamities; introduction of NCIP from 1st November 2013 minimum indemnity level of 80 percent is available consequent to the withdrawal of NAIS. NCIP has (instead of 60 percent in NAIS); and premium rates three component Schemes viz. Modified National are actuarial supported by up-front subsidy in Agriculture Insurance Scheme (MNAIS), Weather premium, which ranges from 40% to 75%, equally Based Crop Insurance Scheme (WBCIS) and shared by Centre and States. Insurer is Coconut Palm Insurance Scheme (CPIS). MNAIS responsible for the claims liabilities. AICIL has and WBCIS are being implemented by AIC and 10 been implementing MNAIS since its inception. other insurance companies. During Kharif 2014, the MNAIS was implemented Modified National Agricultural Insurance by AIC in 133 Districts across 13 States and during Scheme (MNAIS): Rabi 2014-15 in 87 Districts across 9 States. I.4.10.7 The Scheme before incorporation in NCIP I.4.10.8 During Kharif 2014 season, 0.23 crore was piloted from Rabi 2010-11 to Kharif 2013. The farmers were covered insuring 0.31 crore hectare modified version has many improvements viz. with sum insured of R4054.12 crore with gross Insurance Unit for major crops are village premium of R 469.76 crore. panchayat or other equivalent unit; in case of prevented / failed sowing claims up to 25 percent of Since introduction as pilot in Rabi 2010-11 to Kharif the sum insured is payable, post-harvest losses 2014, MNAIS covered about 0.97 crore farmers caused by cyclonic rains are assessed at farm level insuring 1.08 crore hectare area for sum insured of for the crop harvested and left in ‘cut & spread’ R22195.89 crore against premium of R2377.81 condition up to a period of 2 weeks in coastal areas; crore. Claims amounting R2111.36 crore were individual farm level assessment of losses in case reported benefitting more than 26.61 lakhs of localized calamities, like hailstorm and landslide; farmers. on-account payment up to 25% of likely claim as advance, for providing immediate relief to farmers TABLE I.70 MODIFIED NATIONAL AGRICULTURAL INSURANCE SCHEME (MNAIS) (In R lakh) No. of Farmers S.No. Season Sum Insured Gross Premium Claims Reported Insured 1 Rabi 2011-12 617328 163181.19 15506.86 7264.40 2 Kharif 2012 1605822 438424.52 51101.60 61077.94 3 Rabi 2012-13 805609 162406.22 17948.57 4626.48 4 Kharif 2013 1429499 429557.29 53280.57 61951.09 5 Rabi 2013-14 2163549 441179.85 37314.38 43924.88 6 Kharif 2014 2347611 405412.47 46976.92 23022.86 64ANNUAL REPORT 2014-15 Weather Based Crop Insurance Scheme the basis of which payout/ claims are processed. (WBCIS): The payouts are made on the basis of adverse variations in the current season’s weather I.4.10.9 Apart from the above two yield guarantee parameters as measured at Reference Weather insurance Schemes, the Government of India had Station (RWS). Claim under WBCIS is area based introduced another Pilot namely, Pilot Weather and automatic. The Company insured more than Based Crop Insurance Scheme (WBCIS) with 35 different crops including perennial crops like effect from Kharif 2007, which became full-fledged Apple, Citrus crops, Grapes, Mango, Scheme as a component of NCIP with its Pomegranate, Cashew nut, Oil palm, etc. During introduction. The Scheme operates on an actuarial Kharif 2014, the scheme was implemented by AIC basis with premium subsidy which ranges from in 102 Districts across 14 and during Rabi 2014-15 25% to 50% equally shared by Centre and States. in 88 Districts across 11 States. AIC has since implemented the Scheme in various States during all previous Kharif and Rabi seasons I.4.10.11 During Kharif 2014 season, 0.24 crore starting Kharif 2007. WBCIS is a parametric farmers were covered insuring 0.27 crore hectare insurance product designed to provide insurance with sum insured of R6008.99 crore with gross protection to the cultivator against adverse premium of R 621.23 crore. weather incidence during the cultivation period, such as deficit & excess rainfall, frost, heat Since introduction as pilot in Kharif 2007 to Kharif (temperature), relative humidity, wind speed etc., 2014, WBCIS covered about 3.45 crore farmers which are deemed to adversely impact the crop insuring 4.63 crore hectare area for sum insured of yield. R63501.19 crore against premium of R6022.31 crore. Claims amounting R4701.73 crore became I.4.10.10 Crops and ‘Reference Unit Areas (RUA)’ payable benefitting more than 216.32 lakhs are notified before the commencement of the farmers. season by the State Government Each RUA is linked to a Reference Weather Station (RWS), on TABLE I.71 WEATHER BASED CROP INSURANCE SCHEME (WBCIS) (In R lakh) No. of Farmers S.No. Season Sum Insured Gross Premium Claims Reported Insured 1 Rabi 2011-12 3169918 669577.58 55754.43 58211.10 2 Kharif 2012 3547463 724009.97 72647.97 54697.44 3 Rabi 2012-13 3706834 646623.46 57562.09 77740.13 4 Kharif 2013 5000339 891262.43 89820.20 66692.59 5 Rabi 2013-14 1287898 311593.89 28610.78 29798.38 6 Kharif 2014 2455421 600899.01 62123.08 55089.77 65ANNUAL REPORT 2014-15 Coconut Palm Insurance Scheme (CPIS): Utilisation of agency network of GIPSA companies: I.4.10.12 AIC in collaboration with Coconut Board designed Scheme for coconut i.e. Coconut Palm I.4.10.14 In order to increase the penetration of Insurance Scheme (CPIS) is now a component of crop insurance it has been decided to use the NCIP. The Scheme is available to all Coconut agency network of the four GIPSA Companies to growing States/UTs in the country. Dwarf and sell crop insurance. In this regard IRDA has given Hybrid coconut palms in age range of 4 to 60 year its approval for the Co-Insurance arrangement and Tall variety coconut palms in age range of 7 to between AIC and the four GIPSA Companies 60 year are eligible for coverage. On premium, which will cover only Non-Loanee farmers under 50% subsidy will be paid by Coconut Development WBCIS and MNAIS in addition to some In House Board (CDB) and 25% by State Government products. concerned and balance 25% of the premium will be As per the Co-Insurance agreement and MOU, paid by farmer / grower. In case, the State business will be co-shared in the ratio of 51:49 with Government does not agree to bear 25% share of AIC and the four GIPSA Companies. Also, the premium, farmers / growers will be required to pay Company shall be solely and exclusively 50% of premium, if interested in insurance responsible for claim assessment and payment so Scheme. as to ensure smooth implementation of the I.4.10.13 Besides, the above AIC has developed Schemes. Claim paid are also co shared between various crop insurance products for risk mitigation AIC and GIPSA Companies. of various crops viz. Rainfall Insurance Scheme- I.4.11 Micro Insurance Coffee (RISC) in collaboration with Coffee Board, I.4.11.1 In order to facilitate penetration of micro Rubber Plantation Insurance, Bio-Fuel Plants insurance to the lower income segments of Insurance, Grapes Insurance, Mango Weather population, IRDA has formulated the micro Insurance, Potato Contract Farming Insurance, insurance regulations. Micro Insurance Pulpwood Tree Insurance, Rabi Weather Regulations, 2005 provide a platform to distribute Insurance, and Varsha Bima / Rainfall Insurance. TABLE I.72 COCONUT PALM INSURANCE SCHEME (CPIS) (In R lakh) No. of Farmers S.No. Year Sum Insured Gross Premium Claims Reported Insured 1 2009-10 45 112.32 0.66 0.00 2 2010-11 35019 19904.24 106.08 30.26 3 2011-12 8454 5510.95 29.77 92.47 4 2012-13 12279 7843.90 40.57 76.80 5 2013-14 13970 8694.60 70.87 95.49 6 2014-15 2845 2500.56 17.60 30.75 66ANNUAL REPORT 2014-15 insurance products, which are affordable to the Life Insurance Sector rural and urban poor and to enable micro insurance I.4.11.4 While the individual new business to be an integral part of the country’s wider premium under the micro insurance segment for insurance system. the year 2014-15 stood at R28.89 Crore for 8.16 I.4.11.2 The main thrust of micro insurance lakh new policies, the group business premium regulations is protection of low income people with amounted to R315.60 crore covering 2.31 crore affordable insurance products to help cope with lives. and recover from common risks with standardized LIC contributed to a significant component of the popular insurance products adhering to certain business procured in this portfolio by garnering levels of cover, premium and benefit standards. R16.40 crores of individual new business premium These regulations have allowed Non Government under 4 lakh policies and R281.93 crore of group Organizations (NGOs) and Self Help Groups premium covering 2.06 Crore lives. (SHGs) to act as agents to insurance companies in marketing the micro insurance products and have I.4.11.5 The number of micro insurance agents at also allowed both life and non-life insurers to the end of March 2015 stood at 20855; of which promote combi-micro insurance products. 19379 agents pertained to the LIC and the remaining represented the private sector I.4.11.3 The Authority has reviewed the Micro companies. Thirteen life insurers had 21 micro Insurance Regulations, 2005 comprehensively insurance products as at 31.3.2015. Of these 21 and notified IRDAI (Micro Insurance) Regulations, products, 13 were Individual products and the 2015 permitting several more entities like Business remaining 8 were Group products. Correspondents of Scheduled commercial banks, District Co-operative banks, Regional Rural Non-Life Sector Banks, Urban Co-operative banks, Primary I.4.11.6 The Government of India set up a agricultural co-operative societies, other consulting group in 2003 to examine the existing co-operative societies, RBI regulated NBFC-MFI’s insurance schemes for the rural poor; and on the to improve penetration of Micro Insurance. basis of the group’s recommendations, the TABLE 1.73 NEW BUSINESS UNDER MICRO-INSURANCE PORTFOLIO FOR 2014-15 (Premium in R Lakh) Individual Group Policies Premium Schemes Premium Lives covered Private Total 416027 1249.22 62 3366.22 2531436 LIC 400341 1640.23 5417 28193.80 20596725 Industry Total 816368 2889.45 5479 31560.02 23128161 Note: New business premium includes first year premium and single premium. 67ANNUAL REPORT 2014-15 Authority issued IRDA ( Micro insurance ) tailor-made/ group micro insurance policies offered Regulations, 2005. by private and public insurers for the benefit of these segments. Micro insurance being a low I.4.11.7 In case of non-life business, there are a price-high volume business, its success and number of products offered (e.g. Janata Personal sustainability depends mainly on keeping the Accident Policy, Gramin Personal Accident Policy, transaction costs down. Cattle/Livestock insurance, etc.) by the non-life insurance companies targeting the lower income I.4.11.9 Section 32B and 32C of the Insurance Act, segment. 1938 and IRDA (Obligations of insurers to rural or social sectors) Regulations stipulate obligations to I.4.11.8 There are a number of products offered by insurers in respect of rural and social sector, which all registered non-life insurance companies have also contributed a lot in development and targeting low income segment of the population, promotion of micro insurance products by insurers e.g. Janata Personal Accident Policy, Gramin in India. Personal Accident Policy, Cattle/Livestock insurance, etc. Further, there are a number of TABLE I.74 DETAILS OF MICRO-INSURANCE AGENTS OF LIFE INSURERS - 2014 - 15 As on As on Insurer Additions Deletions 1st April, 2014 31st March, 2015 Private Total 1656 53 233 1476 LIC 18401 1790 812 19379 Industry Total 20057 1843 1045 20855 TABLE I.75 INDIVIDUAL DEATH CLAIMS UNDER MICRO- INSURANCE PORTFOLIO - 2014-15 (Benefit Amount in ` Lakhs) Claims pending at Total Claims Claims paid Claims repudiated end of year Life Insurer No of Benefit No of Benefit No of Benefit No of Benefit Policies Amount Policies Amount Policies Amount Policies Amount Private Total 1814 405.39 1773 339.86 40 63.83 1 1.69 97.74% 83.84% 2.21% 15.75% 0.06% 0.42% LIC 11582 1845.48 11365 1817.67 207 25.45 9 2.35 98.13% 98.49% 1.79% 1.38% 0.08% 0.13% Industry Total 13396 2250.87 13138 2157.53 247 89.28 10 4.04 98.07% 95.85% 1.84% 3.97% 0.07% 0.18% Note: The percentages indicate the those of the respective total claims. 68ANNUAL REPORT 2014-15 TABLE I.76 GROUP DEATH CLAIMS UNDER MICRO-INSURANCE PORTFOLIO - 2014-15 (Benefit Amount in ` Lakhs) Claims pending Total Claims Claims paid Claims repudiated Claims written back at end of year Life Insurer No of Benefit No of Benefit No of Benefit No of Benefit No of Benefit Lives Amount Lives Amount Lives Amount Lives Amount Lives Amount Private Total 5655 1252.09 5517 1218.38 18 4.96 0 0.00 120 28.75 97.56% 97.31% 0.32% 0.40% 2.12% 2.30% LIC 127836 41477.61 127751 41443.90 76 31.28 9 2.43 99.93% 99.92% 0.06% 0.08% 0.01% 0.01% Industry Total 133491 42729.70 133268 42662.28 94 36.24 0 0.00 129 31.18 99.83% 99.84% 0.07% 0.08% 0.10% 0.07% Note: The percentages indicate the those of the respective total claims. TABLE I.77 DURATION-WISE OF DEATH CLAIMS SETTLED IN MICRO-INSURANCE INDIVIDUAL CATEGORY - 2014-15 (No. of Policies) Duration since intimation Life Insurer Within 30 31 to 90 91 to 180 181 Days to More than Total Claims Days Days Days 1 Year 1 Year Settled Private Total 1691 70 10 0 2 1773 95.38% 3.95% 0.56% 0.00% 0.11% 100.00% LIC 11365 0 0 0 0 11365 100.00% 0.00% 0.00% 0.00% 0.00% 100.00% Industry Total 13056 70 10 0 2 13138 99.38% 0.53% 0.08% 0.00% 0.02% 100.00% Note: The percentages indicate the those of the respective total claims settled. TABLE I.78 DURATION-WISE DEATH CLAIMS SETTLED IN MICRO-INSURANCE GROUP CATEGORY - 2014-15 (No. of Lives) Duration Life Insurer Within 30 31 to 90 91 to 180 181 Days to More than Total Claims Days Days Days 1 Year 1 Year Settled Private Total 2695 2937 83 43 0 5758 46.80% 51.01% 1.44% 0.75% 0.00% 100.00% LIC 127079 672 0 0 0 127751 99.47% 0.53% 0.00% 0.00% 0.00% 100.00% Industry Total 129774 3609 83 43 0 133509 97.20% 2.70% 0.06% 0.03% 0.00% 100.00% Note: The percentages indicate the those of the respective total claims settled. 69ANNUAL REPORT 2014-15 I.4.12 DIRECTIONS, ORDERS AND the Central Public Information Officer (CPIO) of the REGULATIONS ISSUED BY THE AUTHORITY Authority in terms of Section 5(1) of the RTI Act, 2005. I.4.12.1 The Authority issued a number of circulars, directions and orders during 2014-15. The list of all I.4.13.2 During the same period, Shri Rakesh such circulars, directions and orders which were Bajaj, Joint Director continued as Central Assistant issued during the period 1st April, 2014 to 31st Public Information Officer for its Delhi Office in March, 2015 are placed at Annexure No. 8. In terms of Section 5(2) of the RTI Act, 2005 and Shri addition, the details of all regulations notified by the H Ananthakrishnan, Joint Director (Legal) Authority till 31st March, 2015 are placed at continued as Appellate Authority in terms of Annexure No. 9. Section 19(1) of the RTI Act, 2005. I.4.13 Right to Information (RTI) Act, 2005 I.4.13.1 During the year 2014-15, the designated officers shown in Table 1.69 below, continued as TABLE I.79 LIST OF CENTRAL PUBLIC INFORMATION OFFICERS Sl No Name of the CPIO Department 1 Mr. DNKLNK Chakravarthy Actuarial 2 Mr. Chandrasekhar V Life 3 Mr. Venkata Raju K Non-life 4 Mr. R Pardhasaradhi Health including TPAs 5 Mrs. M Saritha Consumer Affairs 6 Mr. K Srinivas Admn/HR/IT/Legal/Sectoral Development 7 Mr. P Himakiran Intermediaries 8 Mr. RajeshwarGangula Agency Distribution 9 Mr. Ammu Venkata Ramana F & A (Life and Non-life) 10 Mr. BiswajitSamaddar Internal Accounts 11 Mr. Mahesh Agarwal Investments 12 Mrs. Nimisha Srivastava Surveyors (Delhi Office) 13 Mrs. Manju Arora Delhi Offi ce- Liaison work 70ANNUAL REPORT 2014-15 PART - II REVIEW OF WORKING AND OPERATIONS II.1 Regulation of Insurance and Reinsurance comments of the stakeholders. The draft Companies regulations have been discussed in the Insurance Advisory Committee as well as in the Authority’s During the year under review, the Authority has meeting. The same have been approved by the brought out significant changes in the regulatory Authority. The regulations will be notified very stipulations for the purpose of orderly growth of the shortly. insurance sector. The important regulatory changes include: II.1.3 Insurance Regulatory and Development Authority of India (Micro Insurance) Regulations, IRDAI (Licensing of Insurance Marketing Firm) 2015 have been notified on 13th March 2015 Regulations, 2014. amending 2005 Regulations. The following are II.1.1 A seminar on “Ideas for Development of New highlights Distribution Channels for Insurance” was held at Hyderabad on 20th January 2014 under the lExpanding the definition of who can be a auspices of Life & General Insurance Councils. Micro Insurance Agent to include Business Brain storming sessions were also conducted at Correspondents of scheduled commercial various places across India during February 2014 banks, District Cooperative Banks, Regional and reports were submitted. Consequently p a Rural Banks, Urban co-operative banks, committee was set up with 5 CEOs of Life Primary Agricultural Cooperative Societies, companies and 5 CEOs from General Insurance Other Cooperative Societies, RBI regulated Companies to recommend the regulatory NBFC - MFIs framework of IMF. Basing on the report, an lFacilitating Crop Insurance: In addition to One Exposure Draft on regulatory framework of IMF Life Insurance Company and one General was published on 2nd April 2014 on the IRDAI web Insurance Company, a Micro Insurance Agent site and comments were sought. After considering may work with Agriculture Insurance Company the feedback received, final regulations were of India Ltd and with one standalone health approved by the Authority and IRDAI (Insurance insurance company Marketing Firm) Regulations, 2015 were notified on 21st January 2015. lEnhancement of maximum cover to R2 lacs to qualify as MI in Life and Health Ins, R1 lac in IRDAI (Registration of Corporate Agents) dwelling, livestock, crop insurance. Regulations, 2015 II.1.2 Consequent to the amendment to the lOther Product related improvements: Insurance Act, 1938, the Corporate Agents have Guaranteed Surrender Value (after 3 years) if at been defined as intermediary and insurance least one Yearly Premium is paid, Allowing the intermediary as per section 2(1)(f) of the IRDA Act, flexible premium payment options, Allowing 1999. This necessitated for issuance of new set of remittances of premiums in advance, Allotment regulations for this segment. In this direction, the of lapsed policies of terminated agents to Authority has issued two exposure drafts on the another MI agent. proposed regulations for Corporate Agents for the 71ANNUAL REPORT 2014-15 lMarket Conduct related prescriptions: framework and creation of centralized repository M I Agents shall issue acknowledgements on for trades in debt instruments. collection of premiums and Insurers are Ministry of Finance (MOF), Government of India accountable to premium collections of MI has amended the Securities Contracts Agents, Agents responsibility for Claim (Regulations) Rules, 1957 w.e.f 16th January, 2014 intimation, settlement allowing all insurance companies to become lMaking available Policy documents in the member of SEBI approved stock exchanges. languages recognized under constitution Accordingly, Insurers were allowed to become a Issuance of Guidelines on Interest Rate proprietary trading member of a SEBI approved Derivatives stock exchange for carrying out trades in the debt II.1.4 Insurers were permitted to deal in Financial segment. Derivatives only to the extent permitted and in Permission to invest in Onshore Rupee Bonds accordance with the guidelines issued by the issued by Asian Development Bank (ADB) and Authority vide Regulation 11 which got inserted in International Finance Corporation(IFC) 2004 in the IRDA (Investment) Regulations, 2000. II.1.6 The Authority was in receipt of representation Accordingly, the Authority issued detailed from IFC to permit Insurers to invest in Onshore Guidelines on Fixed Income Derivatives vide Rupee Bonds are being issued by them. IFC Circular no. INV/GLN/008/2004-05dt.24/08/2004. proposed to raise $5 billion equivalent fund in next The said guidelines, inter-alia, permits the Insurers 10 years and the bond proceeds to be used to fund to enter Forward Rate Agreements (FRAs), IFC’s projects in India that require Rupee Interest Rate Swaps (IRS), Exchange Traded financing. Interest Rate Futures (IRF) with a maximum tenure of 1 year to hedge the Interest Rate risk on The Central Government, in exercise of the powers Investments and the forecasted transactions. With conferred under clause (iia) of sub section (h) of the changing Investment environment, product Section 2 of SCRA, 1956 declared “onshore rupee structures, change in guidelines by other bonds” issued by multilateral institutions like the regulators, Authority felt the need to withdraw the Asian Development Bank and the International earlier guidelines and issues fresh guidelines Finance Corporation as securities within the under Reg. 15 of IRDA (Investment) Regulations, meaning of subsection (h) of Section 2 of the 2000 vide Cir. No IRDA/F&I/INV/CIR/138/06/2014 SCRA, 1956 vide Gazette notification dated dated 11th Jun,2014 to address the need of longer 1st August, 2014. term Interest Rate Derivatives. In light of the above gazette notification, Authority Permission to Insurers for membership in SEBI examined the request and decided that “onshore approved Stock Exchanges for Proprietary rupee bonds” issued by Asian Development Bank trading and International Finance Corporation are II.1.5 Securities and Exchange Board of India ‘approved investments’ by exercising the powers (SEBI) vide circular no. CIR/MRD/DP/03/2013 conferred by Insurance Act, 1938 vide dated 24th January, 2013 issued guidelines for sec27A(1)(S) for Life Insurers and vide 27B(1)(j) providing dedicated debt segment on stock for General Insurers subject to the stipulations exchanges. The said circular provides for trading, mentioned in the circular. clearing & settlement, risk management 72ANNUAL REPORT 2014-15 Permission to invest in Long Term Bonds by Reduction in the number of agents may adversely Banks for Financing of Infrastructure and affect the life insurers’ business, persistency and Affordable Housing public perception of the agency channel as a stable career. It is, therefore, in the interest of the II.1.7 RBI vide circular no. DBOD.bp.BC.NO. stakeholders to work on reducing the turnover of 25/08.12.014/2014-15 dt. 15th July, 2014 has agents and build a stable and growing agency force. permitted Banks to issue Long Term Bonds for Financing Infrastructure and Affordable Housing. TABLE II.1 The definition of Infrastructure facility was already DETAILS OF INDIVIDUAL AGENTS OF synchronised by both IRDAI and RBI with LIFE INSURERS 2014-15 “Harmonized Master List of Infrastructure sub- As on 1st As on 31st sectors’ notified by the Government of India on 27th Insurer Additions Deletions April 2014 March 2015 March, 2012. Private 992584 313668 401949 904303 IRDAI had examined the circular of RBI with Total respect to the Long Term Bonds and permitted LIC 1195916 342048 374360 1163604 Insurers to reckon such Investments in the Long Industry Term Bonds issued by Banks towards mandatory 2188500 655716 776309 2067907 Total ‘Infrastructure& Housing sector’ exposure requirements in case of Life Insurer and Corporate Agency ‘Infrastructure or Housing sector’, as the case may II.2.3 As on 31.03.2015, there were 503 Corporate be, in case of General Insurer subject to the Agents. While 79 new corporate agents were stipulations mentioned in the circular. added during 2014-15, licenses of 265 corporate II.2 INTERMEDIARIES ASSOCIATED WITH THE agents were cancelled. LIC had terminated 21 INSURANCE BUSINESS corporate agents and issued 14 new licenses. The Insurance Agents private insurers had terminated 244 corporate agents and while adding 65 new corporate agents. II.2.1 The year 2014-15 witnessed a decline of 5.6 per cent in the number of individual agents. The TABLE II.2 number had decline from 21.89 lakhs as on 31st DETAILS OF CORPORATE AGENTS OF March, 2014 to 20.68 lakhs as on 31st March, LIFE INSURERS 2014-15 2015. While the private life insurers recorded a As on 1st As on 31st Insurer Additions Deletions decline of 9 per cent, LIC recorded a decline of 2.7 April 2014 March 2015 per cent. LIC had a higher number of individual Private 540 65 244 361 agents than all private life insurers put together. At Total the end of the year 2014-15, the number of agents LIC 149 14 21 142 with LIC stood at 11.64 lakhs, the corresponding Industry number for private sector insurers was 9.04 lakhs. 689 79 265 503 Total 11.2.2 In 2014-15, the total number of agents appointed was 6.56 lakhs and the number of Channel wise New Business Performance: agents terminated was as high as 7.76 lakhs. While II.2.4 Individual New Business-Life private insurers appointed 3.14 lakhs, 4.02 lakhs The contribution of individual agents to the agents were terminated. On the other hand, in the individual NB premium has declined to 71.42% case of LIC, 3.42 lakhs agents were appointed during 2014-15 compared to 78.40% in whereas 3.74 lakhs agents were terminated. 2013-14. 73ANNUAL REPORT 2014-15 LIC had procured 95.97% of its individual NB The contribution of Brokers channel, MI Agents premium through individual agents while for the channel and Common Service Centres (CSCs) private sector the share of individual agents was channel are 1.84%, 0.03% and 0.001% to the 35.73%. industry NB premium under individual business. II.2.5 The share of corporate agents, which was at Group New Business 16.95 per cent during 2012-13, had increased to II.2.6 Direct selling continues to be the dominant 22.32 per cent in the year 2014-15. The share of channel of distribution for group business, with a corporate agents in the new business premium share of 93.05 per cent of premium during 2014- TABLE II.3 INDIVIDUAL NEW BUSINESS PERFORMANCE OFLIFE INSURERS FOR 2014-15 - CHANNEL WISE (Figures in percent of Premium) Corporate Common Total Individual Agents Direct MI Service Individual Life Insurer Brokers Referrals Agents Selling Agents Centres New Banks Others* (CSCs) Business Private Total 35.73 47.37 3.35 4.49 9.06 0.003 0.001 100.00 0.04 LIC# 95.97 2.60 0.12 0.02 1.24 0.05 0.00 100.00 0.00 Industry Total 71.42 20.84 1.44 1.84 4.42 0.03 0.001 100.00 0.01 * Any entity other than banks but licensed as a corporate agent. # Does not include its overseas new business premium. Note: 1) New business premium includes first year premium and single premium. 2) The leads obtained through referral arrangements have been included in the respective channels. procured by the private life insurers was significant 15. The corresponding share in the previous year at 50.72 per cent in 2014-15 (46.63 per cent in was 93.91 per cent. This channel had contributed 2013-14). On the other hand, as LIC had 95.97 per 76.62% and 97.47% of the group NB premium of cent of the new business premium from individual the private and public sectors respectively. agents, the contribution of corporate agents for LIC Another important channel for the private insurers had been a mere 2.72 per cent. was Banks. During the year 2014-15, Banks Between bank and other corporate agency contributed 10.36 per cent of the total group channels, the share of Banks in total new business business in case of the private insurers. This figure had gone up from 15.62 per cent in 2013-14 to stood at 17.22 per cent in the previous year. 20.84 per cent in 2014-15. LIC had procured 2.47 per cent of the group There had been an increase in the share of direct business through its traditional individual agency selling in the total individual new business. Its force while private insurers procured 4.52 per cent share had gone up from 3.09 per cent in 2013-14 to through this channel. 4.42 per cent in 2014-15. While private insurers The contribution of Brokers channel was 0.75% to had procured 9.06 per cent of their new business the industry NB premium under group business. through direct selling, LIC had procured 1.24 per The contribution of MI Agents channel and cent of their new business through this channel. 74Common Service Centres (CSCs) is at zero percent. Total of Individual and Group Business II.2.7 At the aggregate level (individual and group business together), ‘Direct Selling’ had contributed 49.67 per cent of the total new business compared to 47.84 percent in 2013-14. The share of individual agents to the aggregate premium had 120.00 100.00 80.00 60.00 40.00 20.00 0.00 Individual Corporate Corporate- Direct Common Agents Agents Brokers MI Agents Service Agents Selling Banks Others Centres (CSCs) Private LIC Total tnec reP CHART II.1: INDIVIDUAL NEW BUSINESS PREMIUM OF LIFE INSURERS CHANNEL WISE CHART II.2: GROUP NEW BUSINESS PREMIUM OF LIFE INSURERS - CHANNEL WISE 120.00 100.00 80.00 60.00 40.00 20.00 0.00 Common Individual Corporate Corporate Agents Agents - Agents- Brokers Direct Selling MI Agents Service Centres Banks Others (CSCs) tnec reP ANNUAL REPORT 2014-15 decreased to 36.44 percent from 40.64 percent of 2013-14. The contributions made by Banks and Corporate Agents other than Banks were 11.34 percent and 1.26 percent respectively. The contribution of Brokers was 1.28%. The contribution of MI Agents and Common Service Centres (CSCs) was at 0.02% and zero percent respectively. I I I I Private I LIC I Total 75ANNUAL REPORT 2014-15 BOX ITEM 2 INSURANCE MARKETING FIRM The Insurance Regulatory and Development Authority (IRDAI) had recently brought in the new concept of intermediaries in the insurance distribution known as Insurance Marketing Firm (IMF). The authority had formulated the regulations which came into effect from the date of gazette notification dated 21.01.2015. IMFs are expected to help in increasing insurance penetration. The salient features of this intermediary are as follows: l The applicant must be either a) Company: public limited company or private company (or) b) A limited Liability Partnership (or) c) Co-operative society. l a) IMF should employ Insurance Sales Persons (ISPs) for soliciting and procuring insurance products from TWO life, TWO general and TWO health insurance companies at any point of time. In case of general insurance only retail lines of business is allowed. b) IMF can undertake Insurance Servicing Activities. c) IMF can market other financial products through Financial Service Executives (FSEs) l The jurisdiction for its operations is restricted to a district. However the business can be solicited pan India.ISP should be domiciled in that district. l There shall be a Principal Officer (PO) for IMF who is responsible for all activities and whose qualification, experience etc are envisaged in the regulations. l The PO and ISPs shall complete prescribed training and examination requirements. l Eligibility for becoming ISP is Pass in 12th Standard. l FSEs engaged shall possess valid license/certificate/authorization issued by respective authorities. l Non refundable application fee of R 5000/- l Net worth (not less than 10 lakhs). l Professional Indemnity Insurance Cover throughout the validity period as per the requirements prescribed. l Remuneration payable to IMF by the Insurer is as per Sec. 40(1) and 40(2) as specified by the authority. Apart from the above, the IMF may receive service charges for recruiting, training and mentoring ISPs which shall not exceed 50% of First Year Commission and 10% of Renewal Commission. TABLE II.4 GROUP NEW BUSINESS PERFORMANCE OF LIFE INSURERS FOR 2014-15 - CHANNEL WISE (Figures in percent of Premium) Corporate Common Total Life Insurer Individual Agents Brokers Direct MI Service Group Referrals Agents Selling Agents Centres New (CSCs) Business Banks Others* Private Total 4.52 10.36 5.10 3.40 76.60 0.00 0.00 100.00 0.00 LIC# 2.47 0.03 0.00 0.03 97.47 0.00 0.00 100.00 0.00 Industry Total 2.90 2.22 1.08 0.75 93.05 0.00 0.00 100.00 0.00 * Any entity other than banks but licensed as a corporate agent. # Does not include its overseas new business premium. Note: 1) New business premium includes first year premium and single premium. 2) The leads obtained through referral arrangements have been included in the respective channels. 76ANNUAL REPORT 2014-15 TABLE II.5 NEW BUSINESS PREMIUM (INDIVIDUAL AND GROUP) OF LIFE INSURERS FOR 2014-15 - CHANNEL-WISE (Figures in percent of Premium) Common Corporate Total Individual Direct MI Service Life Insurer Agents Brokers New Referrals Agents Selling Agents Centres Business (CSCs) Banks Others* Private Total 24.75% 34.35% 3.96% 4.11% 32.83% 0.00% 0.00% 100.00% 0.02% LIC# 41.64% 1.11% 0.05% 0.03% 57.15% 0.02% 0.00% 100.00% 0.00% Industry Total 36.44% 11.34% 1.26% 1.28% 49.67% 0.02% 0.0003% 100.00% 0.01% * Any entity other than banks but licensed as a corporate agent. # Does not include its overseas new business premium. Note: 1) New business premium includes first year premium and single premium. 2) The leads obtained through referral arrangements have been included in the respective channels. CHART II.3: NEW BUSINESS PREMIUM (INDIVIDUAL & GROUP) OF LIFE INSURERS 70.00 60.00 50.00 40.00 Private 30.00 LIC 20.00 Total 10.00 0.00 Common Corporate Corporate Individual Direct Service Agents - Agents - Brokers MI Agents Agents Selling Centres Banks Others (CSCs) Survyeors And Loss Assessors Further, sub-section 4 of Section 64 UM of the Act states that “No claim in respect of a loss which has II.2.8 As per Section 64 UM of Insurance Act, 1938 occurred in India and requiring to be paid or settled amended vide The Insurance Laws (Amendment) in India equal to or exceeding an amount specified Act, 2015, academic qualification as specified by in the regulations by the Authority in value on any the Authority and membership of Indian Institute of policy of general insurance, arising or intimated to Insurance Surveyors and Loss Assessors(IIISLA) an insurer, be admitted for payment or settled are statutory requirements for a person to act as a unless a report is obtained on the loss occurred , surveyor and loss assessor. from any person who holds a licensed issued 77 tnec reP nI ■ ■ ■ANNUAL REPORT 2014-15 under this section to act as Surveyor or Loss II.2.11 The following are the details of trainee assessor (also referred to as “Approved enrolments, grant of fresh and renewal license to surveyor or loss assessor”). individual and corporate surveyors and loss assessors during the period April 2014 to March II.2.9 With the enactment of IRDA Act, in 1999, 2015. IRDAI was made the authority to grant surveyor licenses and the power to grant and regulate TABLE II.6 surveyors, vested with IRDAI.IRDAI grants license LICENCES ISSUED TO SURVEYORS AND to individuals and companies/firms to act as LOSS ASSESSORS Surveyors and Loss Assessors. 2013-14 2014-15 The Insurance Surveyors and Loss Assessors (Licensing, Professional Requirements and Code Fresh licenses of Conduct) Regulations, 2000 (as amended in Individual 480 182 2013) lays down the process of application for Corporate 55 5 procurement of license, code of conduct and . Vide Sub total 535 187 Second Amendment to the Insurance Surveyors Renewals and Loss Assessors (Licensing, Professional Individual 1784 2137 Requirements and Code of Conduct) Regulations, Corporate 158 20 2000, the licensing fee applicable to surveyors and Sub-total 1942 2157 loss assessor has been substantially reduced. Effective from 28.01.2014, an applicant is required Trainee Enrollments 536 753 to pay a fee of R1000+applicable service tax for obtaining license and R100+applicable service tax Grievances - Surveyors and Loss Assessors for renewing the license to work as surveyor and II.2.12 Surveyor Licensing Department of the loss assessor. Authority receives grievances from surveyors regarding empanelment for survey jobs, non- II.2.10 Surveyor department is the first department payment of survey fee by insurance companies of Authority to have implemented web based etc. Such complaints are forwarded to respective Integrated Licensing Management System w.e.f. insurance companies for resolution at their end. 1st April 2013 to facilitate online submission of Policyholders also complain against application by individuals and corporate for grant of surveyors/surveyors firms on non receipt of copy of fresh/renewal/modified license online on the portal survey report, delay in issuance of survey report, www.irdabap.org.in. The web based registration misconduct, violation of IRDA Surveyor system enables all time accessibility to surveyor Regulations etc, such complaints are forwarded to registration, licensing, renewals, movements, and surveyors for speedy disposal of the issues. Apart alterations in a simple, efficient and transparent from above, various RTI’s and Ministry grievances manner. are also received by the department against Subsequent to inauguration of New Delhi Regional surveyors and corporate surveyor firms. Office of Insurance Regulatory and Development II.2.13 During the year 2014-15, the authority Authority (IRDA) on 24.01.2014, Surveyor received 46 complaints, 61 have been addressed Department started operating from Delhi Regional and 12 are outstanding Office w.e.f. 3rd February 2014. 78ANNUAL REPORT 2014-15 BOX ITEM 3 SURVEYORS AND LOSS ASSESSORS The Insurance Laws (Amendment) Act, 2015 has been promulgated to amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999. The Act has substantially changed the statutory framework of section 64UM laid down for surveyors and loss assessors and has empowered IRDA to prescribe qualification, code of conduct and other professional requirements by way of regulations. The key amendments brought in section 64 UM include: (I) Academic qualification specified by the Authority and membership of IIISLA shall be the two statutory requirements for a person to act as surveyor and loss assessor. (ii) The limit of claim amount exceeding which an insurer requires survey report from a licensed surveyor shall be specified in the regulations by IRDA. (iii) The statutory provision on fee, academic requirement, period of validity of license are removed from the Act and IRDA is empowered to prescribe the same vide regulations. (iv) The provision of automatic disqualification in absence of academic qualification and professional body membership is introduced in section 64UM. (v) Statutory requirement of notification of cancellation of license in the Official Gazette is removed. (vi) Period for which a person may act as a surveyor or loss assessor shall be specified by the IRDA. As a result of the amendments in the Act the existing Insurance Surveyors and Loss Assessors regulations would undergo a change. The draft regulations along with schedules uploaded on IRDA website on 6th April, 2015 seeking comments/ suggestions/ views from all stakeholders. Based on the comments received, the important changes in the Insurance Surveyors and Loss Assessors Regulations are as follows: 1) license period reduced to 3 years in line with the Act requirements 2) Qualifications to be prescribed in the regulations. 3) limit of survey introduced - motor - above R 50,000 and other than motor - above R 1 lakh. This limit shall be reviewed every three years. 4) cooling off period after suspension/cancellation reduced from 3 to 1 year 5) appeal against the decision of Authority to SAT 6) Foreign investment allowed upto 49% as per the Rules of Central Government read with Regulations of the Authority 7) Appeal against the decision of Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) in granting membership shall lie with the Authority 8) In case IIISLA does not grant membership to the applicant, the applicant can appeal to Chairman, IRDAI whose decision shall be binding on IIISLA. In case IIISLA does not still comply, the Authority may grant surveyor & loss assessor license on merits. 9) Fit & Proper criteria for directors/ partners of corporate surveyors introduced 10) Surveyor and loss assessor not to undertake any advisory or consultancy work or any other job which can give rise to conflict of interest 11) Transitory provision – all those surveyors and loss assessor who are currently holding surveyors license shall comply with the requirements of academic qualifications and obtain IIISLA membership with 3 years from date of notification of revised regulations. 12) In cases where the survey report is pending due to non completion of document or any other reasons, the surveyor may issue the final report based on the available documents on record after giving minimum three reminders in writing to the insured. 13) corporate surveyor company/ firm shall maintain records in the format specified by the Authority which shall capture claim-wise and licensed surveyor-wise details wherein each claim surveyed by the company/ firm is tagged to the licensed surveyor in the company/ firm. 14) corporate surveyor company/ firm shall put in place systems which allow regular access to such records and details by the Authority. 79ANNUAL REPORT 2014-15 Insurance Brokers II.2.16 During the period under report, the Authority II.2.14 The Authority allowed Insurance Brokers to has renewed 101 insurance broker licenses. As operate in the Indian market from 2003 and the first per the revised regulations, an insurance broker Broking license was issued on 30th January, 2003 may apply for renewal 90 days in advance prior to pursuant to the provisions of the IRDA (Insurance the expiry of their licence. The Authority has been Brokers) Regulations, 2002. These regulations taking steps to improve the quality of compliance were superseded by IRDA(Insurance Brokers) levels of the insurance brokers. Some of them Regulations, 2013 in the year 2013-14. The include conduct of workshops, regular interaction Regulations stipulated a capital requirement of with Insurance Brokers Association of India. R50 lakh for direct insurance brokers, R200 lakh for reinsurance brokers and R250 lakh for composite TABLE II.7 GRIEVANCES RELATING TO SURVEYORS AND LOSS ASSESSORS Outstanding at the Outstanding at the For the period Received Addressed beginning of period end of the period April 2013 - March 2014 3 69 45 27 April 2014 - March 2015 27 46 61 12 brokers. The regulation prescribes a limit of 26% The state wise distribution of licenses is as follows. on foreign equity participation in insurance broking. However, this limit has been raised to 49% by the TABLE II.8 Government of India which has been notified vide STATE WISE LIST OF INSURANCE BROKERS Indian Insurance Companies (Foreign Investment) AS ON 31-03-2015 Rules, 2015. The Insurance Broking is steadily S.No State No. of Brokers popularizing and the number of registrations 1 Maharashtra 132 increased to 419 since 2003( as on 31.03.2015). 2 New Delhi 85 II.2.15 Out of the total number of licenses issued as 3 West Bengal 36 on 31-03-2015, 365 are direct brokers, 47 are 4 Tamil Nadu 36 composite brokers and 7 are reinsurance brokers. 5 Andhra Pradesh & The total number of broker licenses issued Telangana 29 includes cancellation of licenses also and the 6 Uttar Pradesh 23 Authority so far cancelled 51 such licenses. It may 7 Gujarat 18 be noted that majority of cancellation of licenses 8 Karnataka 17 fall under the category of voluntary surrender of 9 Punjab 12 license. The Authority has issued 35 new licenses 10 Kerala 13 during the period under report and upto 31st 11 Rajasthan 7 March, 2014, out of which 33 licenses are in Direct 12 Chandigarh 4 Category and 1 license is in Composite Category 13 Madhya Pradesh 4 and 1 in Reinsurance Category. The licenses of 4 14 Haryana 3 insurance brokers have been upgraded from direct Total 419 broking to composite broking. 80ANNUAL REPORT 2014-15 Web Aggregators TABLE II.9 II.2.17 The Authority had taken the initiative to WEB AGREGATORS APPROVED BY THE AUTHORITY (AS AT 31 MARCH, 2015) develop a system, known as Web Aggregator, for comparing and distribution of Insurance Policies S No. Name online. This was an initiative taken for the benefit of 1 iGear Financial Services Pvt. Ltd. prospective buyers’ of the Insurance Policy 2 Great Indian Marketing & Consulting Services Pvt. Ltd. keeping in mind developing trends in e-commerce. 3 Voila Consultancy Services India Private The Authority initially issued guidelines in Limited November, 2011 to enable enthusiastic 4 Policy Mantra Insutrade Pvt. Ltd. entrepreneurs to leverage technological 5 Deztination Insurance Solutions Pvt. Ltd. advancements to apply for licence for comparison 6 Commet Insurance Web Aggregator Pvt Ltd. of insurance products of various insurance 7 PolicyX.com Insurance Web Aggregator companies. Based on the guidelines, the Authority Pvt Ltd had issued licenses to 6 Web Aggregators. 8 Fingoole Insurance Web Aggregator Pvt Ltd. 9 OA Insurance Web Aggregators Pvt Ltd. Subsequently the Authority came out with “IRDA 10 Easy Policy Insurance Web Aggregator (Web Aggregators) Regulations, 2013 and Pvt Ltd licensed 5 Web Aggregators under the regulations. 11 Policybazaar Insurance Web Aggregator At present there are 11 Web Aggregators (Table II .9). Pvt Ltd. Common Service Centres products through this network. As on 31st August, II.2.18 The Department of Electronics and 2015, this network has collected a total premium of Information Technology (DeITY), Government of R137,36,12,622/- (includes new business and India has implemented the Common Service renewal business) and have serviced 4,86,976 Centers (CSCs) on a Public-Private-Partnership customers. (PPP) model as a part of National e-Governance Plan (NeGP). CSCs are the front-end delivery II. 3 PROFESSIONAL INSTITUTES CONNECTED points for government, private and Social Sector WITH INSURANCE EDUCATION Services to the citizen of India. M/s. CSC e- II.3.1 Indian Institute of Insurance Surveyors and Governance Services India Limited, a Special Loss Assessors (IIISLA), an institute promoted and Purpose Vehicle (SPV) was formed to enable delivery of services through the CSC Network. established by the Authority and incorporated under Section 25 of the Companies Act, 1956. The Authority had a pilot launch of this on 6th Membership of the institute is mandatory for grant August, 2014 in Hyderabad, subsequently the of surveyor license. The institute works as self- Authority is in the process of releasing the IRDAI's regulatory body. (Insurance Services by Common Service Centres) Regulations, 2015. At present there are 6142 II.3.2 The Authority in association with Andhra Common Service Centers running across India. Pradesh government established a professional There are 3087 Rural Authorised Persons for institute viz., Institute of Insurance and Risk distribution of insurance through this network. So Management (IIRM) in the year 2002 for training far, CSC SPV signed agreements with 33 and imparting professional courses in insurance insurance companies for distribution of their and related subjects. The Authority continues to support the institute in its endeavours. 81ANNUAL REPORT 2014-15 II.3.3 The Authority also has statutory with the course for village level entrepreneurs representation in the council of the Institute of under Common Service Center guidelines. Actuaries of India (IAI), a statutory and II.3.5 Also, the Authority remains in touch with other professional body for actuaries. The council is reputed professional institutes and organizations responsible for the management of the affairs of related to insurance education in India and abroad. the institute. The erstwhile Actuarial Society of India (ASI) established in 1944 was dissolved; and II. 4 LITIGATIONS, APPEALS AND COURT IAI is a statutory body established under The PRONOUNCEMENTS Actuaries Act, 2006 for regulation of profession of II.4.1 The details of the litigation in terms of cases actuaries in India. filed before the Supreme Court, various high II.3.4 The Insurance Institute of India (III) is the courts, consumer courts, civil courts, Motor examining body for agents’ pre-recruitment Accident Claims Tribunal (MACT), and Lok Adalat, examinations. The institute has also been as also cases disposed/dismissed during 2014-15 preparing course content for various surveyor are provided below: examinations and is also conducting the surveyors’ examinations. Recently, the institute has come up TABLE II.10 DETAILS OF CASES FILED FOR THE PERIOD 2014-15 Sl.No Particulars cases filed Non Life HR Health CAD Life Brokers Total 1. Supreme Court 1 0 1 0 1 0 3 2. Writ Petitions filed in various High Courts 16 5 1 10 5 13 50 3. Writ Appeals ,LPAs filed in various High Courts 0 9 0 0 0 0 9 4. Review/Restoration Petitions filed in various High Courts 0 0 0 0 0 0 0 5. Contempt Petitions filed in High Courts 0 1 1 0 0 0 2 6. Consumer Cases (DCF+SCDRC) 2 0 0 24 20 0 46 7. Civil & Lok Adalat cases 2 0 0 5 2 0 9 8. MACT cases 0 0 0 0 0 0 0 9. PILs 0 1 0 0 0 0 1 10. Criminal Petitions 0 1 0 0 0 0 1 11. State Minorities Commission 0 0 0 1 0 0 1 Total 21 17 3 40 28 13 122 BOX ITEM 4 INSURANCE LAWS (AMENDMENT) ACT, 2015 The process of revision of the Insurance Laws which started with the recommendations of the 190th Report of Law Commission in June 2004 culminated with the enactment Insurance Laws (Amendment) Act, 2015 effective from 26.12.2014, the date of promulgation of the Insurance Laws (Amendment) Ordinance 2014. The Amendment Act made amendments to the Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority (IRDA) Act, 1999. 82ANNUAL REPORT 2014-15 (Contd.....) INSURANCE LAWS (AMENDMENT) ACT, 2015 The major highlights of the amendments are: l Providing for enhancement of the foreign investment cap in an Indian Insurance Company from 26% to an explicitly composite limit of 49% with the safeguard of Indian ownership and control l Empowering IRDAI to frame regulations on several aspects which were earlier a part of the Insurance Act so as to provide IRDAI with greater flexibility to discharge its functions more effectively and efficiently e.g. payment of commission, control of management expenses, opening and closing of branches l Defining 'health insurance business' as a separate vertical by retaining capital requirements for health insurers at the level of R100 Crore. l Enabling foreign reinsurers to set up branches in India and excluding possibility of 100% ceding of risk to a re-insurer l Facilitating entry of Lloyds of London and its members to operate in India through joint venture with Indian Insurance Company or by setting up of branches for the purpose of reinsurance business l Allowing insurers to raise capital through newer instruments l Allowing public sector general insurers to raise capital from market to meet future capital requirements provided Government’s shareholding does not come below 51 per cent at any point of time l Replacing licensing of insurers with registration and doing away with the requirement of annual renewal l Prohibiting multi-level marketing of insurance products to curtail the practice of mis-selling l Expanding of the scope of insurance intermediaries to include corporate agents, third party administrators, surveyors and loss assessors allowing the flexibility to IRDAI to notify other entities as intermediaries from time to time. l Providing for higher penalties ranging from up to R 1 Crore to R 25 Crore for various violations including mis-selling and misrepresentation by agents / insurance companies. l Confining the period during which a life insurance policy can be repudiated on any ground, including mis-statement of facts, to 3 years from commencement of risk or revival or rider to the policy, whichever is later, beyond which no policy can be repudiated on any ground. l Making provision for absolute or conditional assignment of life insurance policies l Entrusting the responsibility of appointing insurance agents to insurers on the basis of eligibility, qualifications and other aspects specified by IRDAI l Making it obligatory for all non-life insurance companies, other than standalone or monline insurers operating in health, reinsurance agriculture, export credit guarantee, to underwrite third party motor vehicle insurance as per IRDAI regulations l Empowering IRDAI to regulate the functions, code of conduct, etc. of surveyors and loss assessors more effectively l Empowering IRDAI to grant prior approval for insuring properties in India with a foreign insurer which was hitherto done by Central Government l Prohibition for investment of funds outside India l The Life Insurance Council and General Insurance Council made self-regulating bodies by empowering them to frame bye-laws for elections, meetings and levy and collect fees etc. from its members. Inclusion of representatives of self-help groups and insurance cooperative societies in l Providing for enhancement of equity capital of General Insurance companies. l Providing for additional avenues of capital so that greater availability of capital for greater distribution and reach to un- served areas, more innovative product formulations to meet diverse insurance needs of citizens, efficient service delivery through improved distribution technology and enhanced customer service standards. l Providing for powers of adjudication for imposing penalty for certain violations. l Providing for appeals to the Securities Appellate Tribunal (SAT) against the orders of IRDAI l Removing archaic and redundant provisions in the Insurance Act relating to Tariff Advisory Committee, provident societies, insurance cooperative societies and mutual insurance companies and cooperative life insurance societies. Thus, the amendments have enabled the Insurance Laws to be aligned to the evolving insurance sector scenario and regulatory practices across the globe. The changes would facilitate IRDAI to create an operational framework for greater innovation, competition and transparency and to enable the insurance sector to achieve its full growth potential and contribute towards the overall growth of the economy and job creation. 83ANNUAL REPORT 2014-15 TABLE II.11 DETAILS OF CASES DISPOSED/DISMISSED FOR THE PERIOD 2014-15 Sl.No. Particulars Non Life HR Health CAD Life Brokers Total A B A B A B A B A B A B A B 1. Supreme Court 0 1 0 0 0 1 0 0 0 0 0 0 0 2 2. Writ Petitions disposed in various High Courts 0 10 8 2 0 0 0 0 1 0 2 4 11 16 3. Writ Appeals ,LPAs disposed in various High Courts 0 0 1 0 0 0 0 0 0 0 0 0 1 0 4. Review/Restoration Petitions disposed in various High Courts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5. Contempt Petitions disposed in High Courts 0 0 0 0 0 1 0 0 0 0 0 1 0 2 6. Consumer Cases 0 0 0 0 0 0 0 1 0 0 0 0 0 1 7. Civil & Lok Adalat cases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8. MACT cases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 0 11 9 2 0 2 0 1 1 0 2 5 12 21 A - with directions to IRDAI B - without directions to IRDAI II.5 INTERNATIONAL COOPERATION IN has grown to over 200 jurisdictions representing INSURANCE nearly 140 countries thus covering 97 per cent of insurance premiums collected all over the world. International Association of Insurance Supervisors (IAIS) The IAIS conducts its activities through a II.5.1 Established in 1994, the International Committee system designed to achieve its Association of Insurance Supervisors (IAIS) is the mandate and objectives. The Executive international standard setting body responsible for Committee (EC) established under the IAIS developing principles, standards and other By-Laws is the governing body of the IAIS which supporting material for the supervision of the comprises members elected from different regions insurance sector and assisting in their across the globe. There are Five Members implementation. The IAIS also provides a forum for representing Asian region in the Executive Members to share their experiences and Committee and the Chairman, IRDAI, is one of the understanding of insurance supervision and Members representing from the region, others insurance markets. Its objectives are to promote being the insurance regulators from China, Japan, effective and globally consistent regulation and Korea and Singapore. Implementation Committee supervision of the insurance industry in order to oversees the implementation of all the activities of develop and maintain fair, safe and stable IAIS as per the mandate approved in the EC. The insurance markets for the benefit and protection of day-to-day business and affairs of the IAIS are policyholders; and to contribute to global financial taken care of by its Secretariat, located at the Bank stability. Over the years, the membership, which for International Settlements in Basel, Switzerland. includes insurance regulators and supervisors, 84ANNUAL REPORT 2014-15 IAIS – Organisational Restructuring: The SAPRs are used to assess the observance of Insurance Core Principles (ICPs) and standards by II.5.2 The Executive Committee is supported by IAIS members that involve development and five committees established – the Audit and Risk, review of an online survey questionnaire for Budget, Financial Stability, Implementation, and circulation to all IAIS members and review the Technical Committees as well as by the response from them. Supervisory Forum. The Financial Stability, Implementation and Technical Committees have IAIS – Standard Setting Activities established various Working Parties II.5.3 IAIS is working on important projects which (Subcommittees/ Task Forces) to help carry out include revision of Insurance Core Principles, their duties. Common Framework (ComFrame) for During the year 2014-15, the IAIS has worked Internationally Active Insurance Groups (IAIG), the towards strengthening its governance and Insurance Capital Standards (ICS), Higher Loss operations with an aim to make the Association Absorbency (HLA) requirements and Global stronger, more efficient and better adjust to Systemically Important Insurers (G-SIIs). emerging needs. Broadly these include creation, Insurance Core Principles merger and disbandment of the existing II.5.4 The Insurance Core Principles (ICPs), committees / subcommittees; new process for established by the IAIS, comprise essential development of supervisory and supporting principles that need to be adhered for an insurance material; more efficient meeting and operating supervisory system to be effective. These procedures; redefining the manner in which the principles set out the framework for insurance observer input is received; promoting decision- supervision, identify subject areas that should be making culture with its voting system to resolve addressed in legislation or regulation in each matters when needed; and guiding principles for jurisdiction, and provide a basis for the IAIS on strategic decisions/ priority setting. Consequent to which it develops more detailed international the organizational level changes both at IAIS and standards and guidance. IRDAI, the Authority has reviewed its representation on IAIS Committees / The ICPs apply to the supervision of insurers and Subcommittees and made fresh nominations to the reinsurers, whether private or government- various working groups and committees. controlled insurers that compete with private enterprises, wherever their business is conducted, The IRDAI has representation on various including through e-commerce. So far the IAIS has committees and working groups of the IAIS and issued 26 Insurance Core Principles (ICPs). These actively participating and contributing to the 26 Core Principles also constitute the globally standard setting activities. The representatives of accepted frame work used in the evaluation of the Authority have made contributions to these insurance supervisory regime in a jurisdiction activities specifically in areas of financial stability, under the Financial Sector Assessment Program market conduct supervision, financial inclusion, (FSAP) conducted jointly by the World Bank and corporate governance etc. Besides, IRDAI’s International Monetary Fund (IMF). According to officials are also part of the IAIS Expert teams for latest Indian FSAP assessment report by IMF- conduct of Self Assessment and Peer Review World Bank team, the Indian Insurance Sector was (SAPR) on the thematic topics of Solvency, compliant with the most of the IAIS Insurance Core Macroprudential Surveillance and Reinsurance. 85ANNUAL REPORT 2014-15 Principles (version 2003) and there is no as such Other than the insurers operating in China, all other “non-compliant” ICP. GSIIs have joint venture tie-up with Indian entities and have presence in the Indian insurance market. The IAIS considers that the ICPs apply to insurance supervision in all jurisdictions regardless G-SII Assessment methodology: of the level of development or sophistication of the II.5.6 The assessment methodology involves insurance markets and the type of insurance three steps: the collection of data, a methodical products or services being supervised. At the same assessment of that data and a supervisory time, IAIS recognises that supervisors need to judgment and validation process. The assessment adjust certain supervisory requirements and methodology is indicator-based and has actions in accordance with the nature, scale and similarities to the approach developed by the Basel complexity of risks posed by individual insurers Committee for G-SIBs. However, insurers vary (i.e. the “proportionality principle”). The IAIS has significantly from banks in their structures and planned to review all the ICPs by end of 2017 and activities and, consequently, in the nature and also propose to address proportionality issue in the degree of risks they pose to the global financial ICP review. The revisions seek to update these system. Thus, the particular indicators and the ICPs based on Jurisdictions' experience with category weightings are selected for identifying G- implementing the ICPs from 2011 and following SIIs to reflect different drivers of possible negative Self-Assessment and Peer Reviews undertaken externalities. on those ICPs. In this regard, the IAIS has set up The IAIS assessment methodology identifies five ICP Review Task Force with representatives from categories to measure relative systemic IAIS members including IRDAI to review and draft importance: non-traditional insurance and non- amendments to the existing ICPs. insurance (NTNI) activities; interconnectedness; Global Systemically Important Insurers substitutability; size; and global activity. Within (G-SIIs) these five categories, there are 20 indicators, II.5.5 The (IAIS) is a partner in a global initiative to including: intra-financial assets and liabilities, identify global systemically important financial gross notional amount of derivatives, Level 3 institutions (G-SIFIs). The focus of IAIS is in assets, non-policyholder liabilities and non- relation to potential global systemically important insurance revenues, derivatives trading, short term insurers (G-SIIs). To this end, the IAIS has funding and variable insurance products with developed assessment methodology to identify G- minimum guarantees. NT and NI activities of G- SIIs and a set of policy measures that will apply to SIIs are regarded as those most likely to cause or them. G-SIIs are designated by the Financial amplify systemic risk events. For this reason, the Stability Board (FSB) following consultation with NTNI indicator is heavily weighted in the current the IAIS and national authorities. IAIS methodology. The Financial Stability Board (FSB) in consultation IAIS Policy measures applicable to G-SII: with the IAIS and national authorities and had identified for 2014 the nine G-SIIs identified in II.5.7 The IAIS framework of policy measures 2013. These are Allianz SE, American applicable to G-SIIs is in line with the International Group Inc., Assicurazioni Generali recommendations from the FSB, which include: S.P.A., Aviva plc, Axa S.A., MetLife Inc., Ping An (1) Enhanced Supervision: Applying more Insurance (Group) Company of China Ltd., intensive and co-ordinated supervision of Prudential Financial Inc. and Prudential plc. 86ANNUAL REPORT 2014-15 SIFIs and supplementary prudential and other transferring of risks from one part of the group to requirements as determined by the national another, often on a cross-border basis. In order to authorities. fully understand the operations and risks of an IAIG and its entities in the involved jurisdictions, the (2) Effective resolution: Improve supervisors’ involved supervisor needs to cooperate and ability to resolve SIFIs in an orderly manner coordinate with each other. without destabilising the financial system and exposing the taxpayer to the risk of loss. The IAIS has introduced the concept of Common Framework (ComFrame), a regulatory framework (3) Higher Loss Absorbency (HLA): Requiring for the Supervision of IAIGs in the year 2011. higher loss absorption (HLA) capacity for G- ComFrame sets out a comprehensive range of SIIs to reflect the greater risks that these qualitative and quantitative requirements specific institutions pose to the global financial to IAIGs, as well as the supervisory processes and system. prerequisites for their supervisors to implement The IAIS proposes further revise and develop the ComFrame. ComFrame is structured in three G-SII assessment methodology as needed to Modules: ensure, among other things, that it appropriately • Module 1, Scope of ComFrame includes the addresses all types of insurance and reinsurance, criteria and process for the identification of IAIGs and other financial activities of global insurers. The by supervisors, the breadth of supervision of revised G-SII assessment methodology proposed IAIGs (which legal entities are included) and the to be applied from 2016. identification of the group-wide supervisor. Group-Wide Global Insurance Capital • Module 2, The IAIG contains the requirements Standards: that an IAIG will need to meet. II.5.8 As a foundation for HLA requirements, the • Module 3, The Supervisors covers the process IAIS has developed the Basic Capital of supervision, highlighting the role of the group- Requirements (BCR) to apply to all group activities, wide supervisor and other relevant supervisors’ including noninsurance activities, of G-SIIs. The responsibilities within the process. The module development of the BCR is the first step of a long- covers the supervisory process, enforcement, term project to develop risk-based, group-wide cooperation and interaction requirements global insurance capital standards. The second step is the development of HLA requirements to Though the IAIS sets out the criteria and process apply to G-SIIs, due to be completed by the end of for identifying IAIGs, it will be the supervisory 2015. The final step is the development of a risk- colleges that identify IAIGs. Under ComFrame, based group-wide global insurance capital supervisory colleges and group-wide supervisors standard (ICS). will be established for all IAIGs. A supervisory college is a set up of involved supervisors Common Framework (ComFrame) for IAIGs connected with the supervision of entities II.5.9 Internationally Active Insurance Group belonging to an insurance group which will (IAIG) is the designation to be given to insurance facilitate decision-making in identifying an IAIG, groups or financial conglomerates that exceed including the possible application of discretion in thresholds on size and international activity. IAIGs the application of the ComFrame criteria. The engage in activities in and across several countries IAIG group-wide supervisor will be selected by the and markets. Their activities include the 87ANNUAL REPORT 2014-15 relevant supervisors. The group-wide supervisor is The IAIS is planning to develop the ICS Version 1.0 responsible for promoting effective co-ordinated by June 2017. Full implementation (ICS Version supervision of an insurance group including 2.0) is scheduled to begin in 2020 after testing and co-ordinating the input of insurance legal entity refinement with supervisors and IAIGs. Ongoing supervision. In principle, the role of group-wide work is intended to lead to improved convergence supervisor is undertaken by the supervisor in the over time on the key elements of the ICS i.e., jurisdiction where: valuation, capital resources and capital requirements. • the Head of the IAIG is based, International Activities of IRDAI • the insurance operations of the IAIG are actually II.5.11 The IRDAI has been actively extending and controlled, and arranging for training programmes to other • the supervisor has the statutory responsibility to jurisdiction supervisors particularly from African supervise the Head of the IAIG. region. The training capsules are designed to suit specific requirements and to improve and enhance IRDAI is also participating in the supervisory knowledge on various aspects of insurance. In colleges set up in respect of foreign entities having general the training sessions are conducted at the presence in India in the insurance sector. The office of IRDAI, Hyderabad and officials who deal supervisory colleges are useful for sharing & with relevant areas of insurance supervision are obtaining important regulatory information among assigned to conduct these training programmes international insurance regulators to better assess through lectures, presentations and discussions to risks that are emerging beyond their borders and give practical perspective. outside their respective authorities. During the period 2014-15, the IRDA had hosted The Development Phase of ComFrame began in study teams from National Insurance Commission, 2010. The IAIS finalised ComFrame for the Nigeria, National Bank of Ethiopia and Bank of purposes of Field Testing in 2013. The Field Testing Zambia. Phase of ComFrame began in 2013. During field National Insurance Commission (NIC), Nigeria, in testing, ComFrame will be evaluated in practice so continuation of previous study visits in 2012 and that it can be modified as necessary prior to formal 2013, had deputed two senior officials to IRDAI adoption. from September 01-04, 2014 to undertake study of Insurance Capital Standards (ICS) IRDA’s Insurance Repository System and II.5.10 Within Comframe, the IAIS has agreed to Insurance Sales/ distribution mechanism. During develop a risk-based global insurance capital the exposure training, they were introduced with standard (ICS) and to include it within ComFrame. the Insurance Repository System, technical The ICS is being designed to measure the capital structure and implementation issues encountered. adequacy of an IAIG. The ICS should be used by They also visited Central Index Server of Insurance Repository System (called “Itrex”) hosted in group wide supervisors to assess the financial Insurance Information Bureau (IIB), Hyderabad, a condition of an IAIG. The ICS is designed to body set up IRDA for data storage and analytics. establish minimum standards for setting levels of Itrex is a digital platform for Insurers and Insurance capital for IAIGs, including methods of calculating repositories to look up e-Insurance Account Details the ICS capital requirement and ICS capital and exchange e-KYC and Policy data between resources. Insurance Repositories and Insurance 88ANNUAL REPORT 2014-15 Companies. The team was also exposed on the 20-21, 2014. They were given first hand industry topics of Business Analytics Project and Integrated experience and challenges since inception of the Grievance Management System (IGMS). Authority. Besides, they were explained about the IRDAI’s mandate, establishment and structure, During October 27-31, 2014, a team of two officials regulatory and supervisory activities, funding, National Bank of Ethiopia (NBE), Ethiopia have levies, audit, and legal framework and other related participated in a four day exposure training issues. programme with a focus on reinsurance company supervision in Indian jurisdiction. The visiting team The overall feedback from the participants brings was exposed to the areas of reinsurance market out the fact that these programmes have been very structure including Licensing procedure & useful and informative to all concerned. The requirements, regulatory framework on solvency Training schedule was very well balanced and regime, risk rating of reinsurers, on-site and off Site detailed and the participants have appreciated the surveillance mechanisms, reporting of financial IRDAI’s cooperation to conduct such training and non-financial transactions, regulatory programmes and also appreciated hospitality interventions, reinsurance brokers licensing, provided by IRDAI. regulation and supervision issues. II.6 PUBLIC GRIEVANCES On January 29, 2015, another team consisting Integrated Grievance Management System eight officials from NBE have visited office of the (IGMS) IRDAI for a half-a-day to get exposure on ‘Micro II.6.1 The IGMS is the repository of the insurance Insurance Innovations: Learning from India’ in industry complaints providing not only a platform to order to design effective mechanism for their own raise customer grievances with insurers but also to insurance industry. They were exposed to the generate various analytical reports on public regulatory framework and supervision mechanism grievances in insurance. undertaken by IRDAI for the micro insurance sector, the processes and control mechanisms II.6.2 IRDAI also regularly accesses the portal of adopted for micro insurance-in both life and non life the Department of Administration and Public segment. Grievances (DARPG), Government of India and ensures that complaints relating to the insurance The IRDAI had also hosted a study team of three sector are downloaded and necessary action to get senior officials from Financial Sector Development them examined by the insurers is taken. Plan (FSDP) Unit, Bank of Zambia from November TABLE II. 12 STATUS OF GRIEVANCES - LIFE INSURERS DURING 2014-15 Outstanding as on Grievances Reported Resolved Outstanding as on Insurer 31st March, 2014 during 2014-15 during 2014-15 31st March, 2015 LIC 0 80944 80944 0 PRIVATE 1180 198048 193119 6109 TOTAL 1180 278992 274063 6109 89ANNUAL REPORT 2014-15 Life Insurers by Policy servicing related complaints constituted 20 per cent of the total complaints in the life sector II.6.3 As on 31st March, 2015, there were 6109 during 2014-15 as compared to 17 percent of such complaints pending for resolution by life insurance complaints in 2013-14. companies. During the year 2014-15, the life insurance industry received 278992 complaints Non-Life Insurers out of which 80944 complaints related to LIC and II.6.6 The non-life insurance companies resolved 198048 complaints related to private sector life 96.59 per cent of the complaints handled during insurers. the year 2014-15. The private non-life insurance II.6.4 During 2014-15, the insurance companies companies resolved 96.31 per cent and public non- resolved 97.82 per cent of the complaints handled. life insurance companies resolved 97.36 per cent The private life insurers resolved 96.93 per cent of of the complaints handled by them. As on 31st the complaints reported, while LIC resolved 100 March, 2015, a total of 2099 complaints were per cent of the complaints as a result of which there pending with the companies for resolution, out of were no pending complaints of LIC as on which 1662 belong to private sector and 487 31.3.2015. pertain to public sector non-life insurance companies. II.6.5 The IGMS data has shown patterns of complaints in the life insurance industry based on II.6.7 The pattern of complaints in IGMS data as the classifications prescribed by the Authority in regard to non-life insurance industry indicates that terms of grievance redressal guidelines. Unfair claims related complaints constitute major chunk business practice complaints constituted the of the complaints during 2014-15. In class-wise largest class of complaints accounting for 52 complaints, Health insurance related complaints percent of the complaints in life sector during 2014- are having the highest number of complaints. 15 as against 56 per cent during 2013-14; followed CHART II.4: CLASSIFICATION OF LIFE COMPLAINTS DURING 2013 - 14 and 2014 - 15 60 56 52 50 40 30 20 20 17 11 10 10 8 8 7 8 2 1 0 Unfair Policy Proposal ULIP Claims Others Business Servicing Processing Related Practice 2013 - 14 2014 - 15 90 tnecrep ni ■ ■tnecrep ni tnecrep ni ANNUAL REPORT 2014-15 TABLE II. 13 STATUS OF GRIEVANCES - NON LIFE INSURERS DURING 2014-15 Outstanding as on Grievances Reported Resolved Outstanding as on Insurer 31st March, 2014 during 2014-15 during 2014-15 31st March, 2015 PUBLIC 682 15860 16105 437 PRIVATE 152 44828 43318 1662 TOTAL 834 60688 59423 2099 CHART 11.5: CLASSIFICATION OF NON-LIFE 50 COMPLAINTS DURING 2013 -14 and 2014-15 45 43 44 40 35 30 25 20 15 10 5 2 2 O 1 1 1 0 CHART 11.6: CLASS-WISE NON-LIFE COMPLAINTS DURING 2012-13 to 2014-15 50 45 45 40 35 30 25 20 15 10 5 0 2012-13 2013-14 2014-15 ■ Motor ■ Health ■ Others 91ANNUAL REPORT 2014-15 II.7. INSURANCE ASSOCIATIONS AND represent insurance agents , intermediaries and INSURANCE COUNCILS policy holders , one each from self-help groups and Insurance cooperative societies. II.7.1 Life Insurance Council in 2014-15 II.7.2 Brief outline of activities carried out by Life Insurance Council is a body set up under Council in 2014-15. section 64C of the Insurance Act 1938. All registered life insurers are members and are lMeeting with Select Committee of Rajya represented by CEOs. The Secretary General Sabha on Insurance Amendment Bill – Life functions as the Chief Executive of the Council. Insurance Council made a presentation During the Financial Year 2014-15 the Council met highlighting the Industry Key Concerns, to the 2 times. The Council has formed several sub- Select Committee of Rajya Sabha on Insurance committees to handle issues arising out of various Amendment Bill on 26th September 2014 at developments concerning the industry. In addition New Delhi. as and when needed specific areas of work are l194DA of Finance Act 2014 - Life Insurance taken up at meetings of ‘working groups’ Council made a representation to Tax Planning constituted to discuss emerging issues from time to and Legislation on August 22, 2014 requesting time. In most sub-committees members choose a clarity on certain aspects. Life Council also wrote Chairman from among themselves. The letter to Hon. Finance Minister of India in committee-based approach ensured participation September 2014 requesting that the date of by and valuable contribution from, a wide cross- implementation of the provisions of section section of senior executives from the industry in 194DA be provided as two months from the very diverse areas of life insurance. issuance of necessary clarification by CBDT. Ordinance on Insurance Amendment Bill 2014 was lPre budget meeting for Union Budget 2015- passed on December 26, 2014 by Govt of India. 16 Life Council was given a opportunity to Subsequent to that life council Secretariat called make a pre budget 2015-16 presentation on 11th upon a meeting of Open session of CEOs to December 2014 at New Delhi. Secretary discuss the formation of life council EC as General, life council was accompanied by a mentioned in the new Insurance Amendment Bill. select tax heads of member companies to make Messrs. Khaitan and Co. was appointed by council the Pre budget presentation. as recommended by the core group of legal heads of companies to prepare Bye laws for council. The lGoods and Service Tax (GST) - Life Council committee met several times for discussing the organised a meeting on GST with two draft bye laws and the final draft of bye laws was consultants i.e. KPMG on 21st January 2015 and placed before all CEOs of member companies in a ELP (Economic Laws Practice) on February 24th, meeting held on April 07, 2015. 2015. All the member companies were invited to attend both the meeting and tax heads of The Insurance Amendment Act 2015 got notified in member companies duly attended both the the Official Gazette on 23rd March 2015 wherein meeting. amended Section 64(F)(1) prescribed that the Executive Committee of Life Insurance council Basis the above two meetings with KPMG and shall consist of four elected members of the Life ELP, it was unanimously agreed by the members Insurance Council, an eminent person not that council should hire the services of ELP for connected with life insurance , three persons to representing life industry on GST. The duly 92ANNUAL REPORT 2014-15 reviewed and revised proposals of ELP were The committee developed the Guidelines that tabled for approval of all CEOs of member will govern the mapping of companies as per the companies in a meeting scheduled on April 07, NIC Classification and the same was sent to 2015. IRDAI for their consideration. lInsurance Awareness Programme of IRDAI - lLegal and Compliance sub-committee – Life Insurance Council not only participated in Legal and Compliance Sub-committee of life the inaugural ceremony on 8th Jan 2015 but also council met twice during the FY 2014-15 and is in process of co-ordinating with the Authority discussed the challenges faced by them in and its members for smooth conduct of these implementing regulatory circulars, notifications, planned district level seminars. etc. Based on the discussions, life council sent appropriate representations to IRDAI and other lCSC - On Boarding Charges in CSC – SPV government authorities. Members also Model discussed the Insurance Laws (Amendment) Life Insurance Council being the custodian of the Ordinance, 2014. “On Boarding Corpus Fund” transfers ` 5,000 lThe Council’s website continues carrying per Licensed RAP (Rural Authorized Person) to statistical data, latest news and other CSC e-Governance services India Ltd on behalf information. The number of hits from different of life insurers. The details of CSC-SPV geographies – national and international activated centers along with the amount increased significantly after upgrading its design withdrawn from the Corpus Fund are displayed and interlinking it with websites of IRDAI and all accordingly on the Life Insurance Council life insurers. Council has also started displaying website as per the list of activated Rural in its website the following data from this Authorized Person (RAP) provided by CSC-SPV financial year 2014-15. to Life Insurance Council. n Data on number of products of life lDiscussions with CRISIL and ICRA- for companies Valuation services for fixed income securities Life Insurance Council conducted series of n Data on Individual Agents of Life discussions on behalf of the industry with service Companies providers such as CRISIL and ICRA for their n New Business Data of Life Companies Valuation services for fixed income securities. Life Insurance Council was successful in As per IRDAI’s directive, since November 2011 negotiating a uniform cost structure from both life council’s website hosts daily NAV’s of all its services providers and members have members. subscribed to the same. le-Repository meeting - Life Council organised lDerivatives Workshop – Life Insurance the meeting to discuss on Delay of Pilot Project Council organised a Workshop on Interest Rate of e-repository in the month of September 2014 Derivatives for member companies on August in Mumbai. Senior officials from IRDAI were 21-22, 2014 in Mumbai. present in the meeting and representatives from all Member Companies and all repositories were lNIC Classification - A committee comprising of present. Life Insurance and General Insurance Companies was constituted for this purpose. 93ANNUAL REPORT 2014-15 lNOS-QP for life insurance agents- Life n Representation on the Finance (No. 2) Bill, Insurance Council has agreed to contribute 2014 – Life Insurance Industry capital to BFSI SSC on suggestion by IRDAI. n Representation on "Requisition for relaxation As regards implementation part of the above in Clause 7 of the Group Guidelines of IRDAI” programme, the responsibility to oversee the n Representation on "Confiscation of methodology of training including delivery Insurance policies under Prevention of methodology to be given to Life Council. The Life Money Laundering Act and Rule there under". Insurance Council discussed the matter of development of NOS- QP,( the qualification pack n Representation to Member Non life, IRDAI on for Life Insurance Agents based on the National Health Insurance Products – Seeking Level Occupational Standards) in its Core Committee Playing Ground meeting and approved the NOS QP proposed by n Representation on Disclosure of Persistency BFSI SSC with some suggestions. The by Product Category Authority has reviewed proposed NOS QP and accorded it approval while making suggestions. n IRDA Circular on Pilot Launch of Insurance Repository System. lLife council made a number of representations to IRDAI and Govt. of India n Fraud Risk Management Guidelines. and some of the key representations are as n Remuneration to Web Aggregators under follows: IRDAI Regulations, 2013 n Guidelines on Replacement of Life Insurance n Transfer of licenses of Specified Persons Policies (SPs) of Corporate Agents (CAs) n Submission of Approach Paper on certain n Electronic Issuance of Insurance Policies queries relating to Assignment of Policies (Section 38) n Delay of Pilot Project of e-repository n Proposed IRDAI seminar on Regulatory n Confiscation of Insurance policies under Compliance Prevention of Money Laundering n Representation to IRDAI on Insurance Laws Act and Rule there under. (Amendment)Ordinance 2014 n Request for issue of invoice for service tax n Representation for reconsideration of collected by IRDAI on the fees paid by Section 45 under the Insurance Laws member companies. (Amendment) Ordinance 2014 n Transfer of licenses of Specified Persons (SPs) of Corporate Agents (CAs) n Appeal to IRDAI to consider reasonable fee/remuneration to the Corporate lCouncil has been actively involved in meetings Agent/Agents for participation in the sale of with and conferences organised by CII, FICCI, online insurance products. ASSOCHAM, etc. n Representation on “Minimum Group Size” as GENERAL INSURANCE COUNCIL envisaged in the guidelines on Group II.7.3 General Insurance Council is a body set up Insurance Policies,2005 under Section 64C of the Insurance Act, 1938 (as 94ANNUAL REPORT 2014-15 amended by the Insurance Laws (Amendment) Departments, CFOs, and other Senior Executives Act, 2015. All registered non-life insurers are of the member-Companies for exchange of their members of the Council and are represented by views, experiences and common concerns their Chairman-cum-Managing Directors / Chief affecting the industry in various spheres. These Executive Officers. The Secretary General forums also built the camaraderie and rapport functions as the Chief Executive of the Council. amongst their counterparts in competing companies. The activities of these forums are the II.7.4 During the year 2014-15, the Executive basic foundation for the industry to enhance the Committee of the Council comprised, apart from adoption of best practices and standards in core the nominees of Insurance Regulatory & business activities, enhancing customer service Development Authority (IRDA) [viz. Member, Non- standards, maintaining market discipline and Life] as Chairman of the Council. Sr. JD, Non-Life, development of non-life insurance market in a IRDA and the Secretary General, the Chief healthy manner. In all there were 15 formal Executive Officers and Chairman-cum-Managing meetings were held under the aegis of the Council Directors of all 21 Non-life Insurance Companies, 5 covering ETASS, Health, Motor, Property, stand alone health insurance companies, and two Taxation and Compliance issues. specialist insurance companies (AIC and ECGC) who are licensed by IRDA to carry on general II.7.7 The Council has participated in the meetings insurance business in India, and India’s National of various Committees constituted by the IRDA and Reinsurer, General Insurance Corporation of India contributed in terms of bringing out the concerns (GIC Re). The current membership strength of the and requirements of the Non-Life Insurance Council is 29. industry. II.7.5 Three formal meetings of the Executive Council was represented in the conferences / Committee of the Council were held during the seminars / meetings of various forums like FICCI, period April 2014 to March 2015. A Conclave of CII, ASSOCHAM, III, IBAI and other public CEOs & CMDs was held in July 2014 to identify initiatives in different cities as well as on the various critical industry issues. A meeting of all CEOs & Committees constituted by IRDA. CMDs was also held in March 2015 to discuss Council has put forth the Industry’s view point and issues relating to the G I Council reorganization as opinions on various matters referred to by different mandated by the Insurance Laws (Amendment) Ministries like Ministry of Finance (Insurance Bill 2015. The Council also met Chairman, IRDA on Division), Ministry of Road Transport and five occasions during the year under review. Highways, Ministry of Finance (Revenue Division), The key issues discussed with Chairman IRDA Ministry of Home Affairs, Ministry of Statistics and included Dynamic BC for select occupancies, Programme implementation, CBDT and CBCE Standardized RFQ for Property & Group Health officials. SG participated in a total of 18 meetings portfolios, Coinsurance UW slip and ETASS with various Ministry officials during the year under project, Motor TP price revision for 2015-16, Use & review. This included a presentation made to the File guidelines, Collaboration with IIB on thematic Select Committee of Parliament on Insurance reports, Stand alone NAT CAT perils policy, etc. Laws (Amendment) Bill, 2014. II.7.6 During the year, Council provided a platform The Council continued to implement various for the Heads of various Underwriting special projects already initiated for the benefit of 95ANNUAL REPORT 2014-15 its Members. It also pursued the Legal matters at of India. The emphasis was mainly on the SC as well as Mumbai High Court to put forth insurance solutions for reconstruction of the the industry viewpoints in respect of Uninsured damaged economy while relief & vehicles, and Package rates for Health insurance rehabilitation is being provided by the policies. existing Govt. regulations. Based on the follow up efforts of the G I Council, Ministry Acting as the one-point contact for various of Home Affairs, Dept. of Disaster institutions and trade bodies, Council has Management has already addressed letters deliberated over the matters referred to it by IRDA, to various Secretaries in the Central Govt. Member Companies and others and acted upon requesting them to explore the possibility of the various actionable points decided during the insuring their critical assets and EC meetings. infrastructure against natural disasters with In all, GI Council (Secretary General and other a view to raising funds for reconstruction senior officers) attended / participated in 92 activities. meetings in various places in pursuit of various 4) National Health Assurance Mission: activities and projects. Following the reorganization of Ministries at II.7.8 Major activities of the Council: the Central Government, RSBY which was 2014-15 hitherto being handled by the Ministry of Labour & Employment has been transferred 1) Taxation issues as well as the suggestion to to the Ministry of Health & Family Welfare take measures to improve the penetration of (MoH&FW). As the Govt. is considering insurance in the country. Due to persistent universal National Health Assurance follow up, one significant development has Mission (NHAM) for all citizens, Council led been that the Income-tax exemption limit has a delegation of CEOs and CMDs to meet been enhanced to ` 25,000/- for Health Joint Secretary, MoH&FW to request Insurance premium. Ministry to include insurance solutions into 2) TDS on Motor Vehicles compensation: the NHAM. This was also followed up by The Finance Bill 2015 has amended Section submitting to DGS a comprehensive White 194 (A), clause ix of the Income-Tax Act that Paper on the contribution the insurance provided for deduction of TDS on payment industry has made through the RSBY of compensation to victims of road scheme towards penetration of health accidents under MACT awards. Previously, insurance as well as products required for TDS was deducted on accrual basis; now it ensuring critical care to the masses. is proposed to be deducted when interest is 5) Insurance Laws Amendment: From the credited or actually paid. This amendment legislative point of view the Council strongly will take effect from 1st of June 2015. represented the views points of the industry 3) Disaster Relief & Risk Transfer through to the Select Committee set up to examine Insurance: Council had assisted IRDAI and the Insurance Laws (Amendment) Bill. NDMA to come out with specific achievable Many of the suggestions made have been points for Disaster Relief & Risk Transfer taken into account while passing the Bill in through Insurance. All the suggestions its final version. made in the Report were accepted by Govt. 96ANNUAL REPORT 2014-15 6) Ministry of Road Transport & Highways 8) Reorganization of the Council: Finally, (MoRTH): Ministry has been working on a with the passage of the Insurance Laws new Road Safety and Transport Bill (RSTB). (Amendment) Bill the Council is in the Council has been very actively discussing process of reorganizing itself, including the Bill from the draft stage itself with the drafting of suitable Bye-laws for self officials of MoRTH. With assistance and regulating its activities. As of now, the support from member companies, Council Steering Committee set up for reorganizing met the Union Minister of Road Transport & the Council has met more than once and Highways and Dept. officials on more than have briefed the legal consultants who are one occasion and emphasized the need for preparing the draft Bye-laws. The entire introducing limitation on the liability for activity of reorganizing the Council and victims of road accidents as well as having a full-fledged EC as per the Act introducing the concept of voluntary liability provisions is expected to be completed limits over and above the statutory cap. In before 31st May 2015. addition, the need for time limit for filing of II.8 FUNCTIONING OF OMBUDSMEN claims have also been emphasized. The II.8.1 During 2014-15, the twelve Ombudsmen Council is pursuing its efforts further and centers’ spreads across India have received a total ensured that the industry concerns relating of 21484 complaints. While 14339 complaints to defences available to insurance (66.74 per cent) pertained to life insurers, the companies as well as the Authority to decide remaining 7145 complaints (33.26 per cent) the premium. Council considers that work related to non-life insurers. This was in addition to done in respect of both the Insurance Act as 9617 complaints pending with various offices of well as RSTB is a good achievement during Ombudsmen as at the end of March 2014. the year under review. II.8.2 During 2014-15, the Ombudsmen disposed 7) ETASS- G I Council is thankful to the of 24319 complaints. Out of these complaints, Authority providing an opportunity for the Ombudsmen declared 53.48 per cent of the pilot module of ETASS for Fire line of complaints as non-acceptable/not-entertainable. business, as a first step, to bring efficiency Awards/recommendations were issued for 25.04 among inter-company transactions and per cent of total complaints. Other than this, 8.64 balances. The first module was soft per cent of the complaints were withdrawn, while launched by Chairman, IRDAI on 27th April nearly 12.84 per cent of the complaints were 2015 and based on the feedback and dismissed. 6782 complaints were pending as on success of the module, this system would 31st March, 2015. be extended to other lines of business as well as other stakeholders such as Brokers, Reinsurers, etc. Council would consider this as one of the main activities for 2015-16 and this activity would involve time, effort as well as coordination with member companies to make it a success. 97ANNUAL REPORT 2014-15 TABLE II. 14 DISPOSAL OF COMPLAINTS BY OMBUDSMAN DURING 2014-15 Complaints Complaints Received No. of Complaints disposed by way of Complaints disposed Insurer O/S as on during Total O/S as on during 31.3.2014 2014-15 2014-15 (I) (II) (III) (IV) 31.3.2015 Life 5724 14339 20063 15666 3402 1329 1718 9217 4397 [21.72] [8.48] [10.97] [58.83] Non-Life 3893 7145 11038 8653 2687 773 1404 3789 2385 [31.05] [8.93] [16.23] [43.79] Combined 9617 21484 31101 24319 6089 2102 3122 13006 6782 [25.04] [8.64] [12.84] [53.48] O/S : Outstanding Notes: (I) Recommendations / Awards (III) Dismissal (II) Withdrawal / Settlement (IV) Non-acceptance / Not-entertainable Figure in brackets indicates percentages to the respective complaints disposed. 98ANNUAL REPORT 2014-15 PART - III STATUTORY AND DEVELOPMENTAL FUNCTIONS OF THE AUTHORITY Section 14 of the IRDA Act, 1999 (IRDA Act) lays finalised by the Compliance wing is submitted to down the duties of the Authority to regulate, the concerned Whole Time Members (WTM) for promote and ensure orderly growth of the their comments/inputs within 10 days time. After insurance business and reinsurance business. taking care of the comments from the WTMs, the Sub-section (2) of the said section lays down the proposed course of action would be submitted to powers and functions of the Authority. Chapter III of the Chairman for approval. Thus all the inspection the Annual Report covers the activities of the reports are being closed through show cause Authority in 2014-15 while carrying out its functions notice, personal hearing, final actions like penalty, and exercising the powers conferred on it. warning etc. The compliance wing was rechristened as Enforcement Department in III.1 Issue to the applicant a certificate of January 2015 and made a separate department. registration, renew, modify, withdraw, suspend The Government of India has promulgated the or cancel such registration Insurance Laws (Amendment) Ordinance 2014 on III.1.1 Registration, renewal, modification and 26th December 2014 which was later on replaced suspension of certificate of registration of with the Insurance Laws (Amendment) Bill 2015 insurance companies is primarily regulated by the and passed in both the houses of Parliament and IRDA (Registration of Indian Insurance finally enacted on 22nd March 2015. As per this, Companies), Regulations, 2000, as amended from the penalty provisions were amended and the time to time and various circulars and guidelines imposition of penalties would be by a process of issued by the Authority. adjudication in respect of some sections of the Act. The adjudicating officer would be appointed who III.1.2 During 2014-15, the Authority has not issued would be at least at the level of Joint Director in new certificate of registration to any insurance IRDAI. Basic factors to be taken into account company. The certificates of registration issued to before deciding on the quantum of penalty are all the existing life and non-life insurance provided in the Act. All appeals against the orders companies have been renewed in terms of Section of IRDAI would lie with the Securities Appellate 3A of the Insurance Act, 1938. Tribunal. The details of monetary penalties levied III.1.3 The Compliance Wing within the Inspection are given in Annexure 10. Department was set up in Feb 2014. As per the III.1.4 Apart from monetary penalty levied as prescribed procedure, on-site inspection of above, other penal actions were also initiated on regulated entities is the responsibility of the non-compliances observed with other entities. Inspection Wing. The completed reports are being Further, the Authority also issued warnings, forwarded to the inspected entities for specific orders / directions to the regulated entities comments/compliance and thereafter the final who were found to be non-compliant with the inspection report is passed on to the Compliance regulatory stipulations. wing. The responses/compliances received from the inspected entities are analyzed in the Compliance wing. The proposed course of action 99ANNUAL REPORT 2014-15 III.2 Protection of the interests of policyholders the time limitation clause is neither absolute nor in matters concerning assigning of policy, does work in isolation. As such an insurer shall not nomination by policyholders, insurable repudiate any claim unless and until the reasons of interest, settlement of insurance claim, delay are specifically ascertained, recorded and surrender value of policy and other terms and insurers satisfy themselves that those claims conditions of contracts of insurance. would have otherwise been rejected even if reported in time. III.2.1 The Authority has brought out regulations providing for various do’s and don’ts for insurers III.2.3 To enable access to data relating to and intermediaries at the point of sale, point of insurance status of motor vehicles with a view to claim, etc. The Authority has also prescribed Time assisting road accident victims or claimants of frames for rendering various services to motor third party insurance, the Authority, through policyholders under the regulations. Further, the the Insurance Information Bureau, has provided a regulations mandate insurers to have in place an web based facility. The facility provides the users effective mechanism for redressal of policyholder the details of the vehicle, insurance status and grievances. The Authority, through its Consumer address of the policy issuing office. Affairs Department has set up a “Grievances Cell” III.2.4 Keeping in mind the gap created by the exit for policyholders of life and non-life insurance of insurance agents in servicing the life insurance companies. Apart from playing a facilitative role in policies and also to promote the persistency of helping policyholders getting their grievances insurance policies, the Authority has prescribed redressed by insurers within the stipulated time, that insurance companies allot lapsed orphan life the Authority also examines on a continuous basis, insurance policies to individual insurance agents the underlying issues that cause grievances and whose license is in force. The allotted agent’s works towards rectifying the systemic issues details would be intimated by the insurer to the involved. The Authority has also issued Guidelines policyholder concerned. for Grievance Redressal by Insurers vide its Circular Ref no.3/CA/GRV/YPB/10-11 dated III.2.5 While health insurance is growing rapidly; 27.07.2010 which mandate all insurers to have in there are complaints in regard to variable place a Board approved Grievance Redressal interpretations of key policy terms. In order to policy and a Policyholders protection committee as address the expectation of the stipulated in the guidelines for Corporate prospect/policyholder, the Authority has Governance. The Guidelines also prescribe standardized definition of 46 commonly used terms Grievance Redressal Procedures, Turn Around in health insurance policies, nomenclature and Times, and lay down the circumstances in which coverage for 11 critical illnesses and list of complaint is treated as closed. exclusion expenses under indemnity policies. Also, Health Insurance Regulations, 2013 have been III.2.2 The Authority has advised all the life and notified which, inter alia, prescribe free look period non-life insurance companies not to reject the of 15 days for health policies, a time limit of 30 days genuine claims intimated or submitted at a later from the date of receipt of last document for date than the time specified in the policy, due to conveying a decision on claims, provisions relating unavoidable circumstances. The insurer’s to portability, standard definitions and special decision, to reject a claim due to delay in provisions for senior citizens. submission of intimation or documents, shall have to be based on sound logic and valid grounds as 100ANNUAL REPORT 2014-15 III.3 Specifying requisite qualifications, code of streamline the tie-ups between insurers and conduct and practical training for referral companies. It also prescribes ceilings intermediaries or insurance intermediaries and of remuneration payable to referral entities agents. and lays down the frame work under which the referral entities and insurers have to conduct III.3.1 The licensing and code of conduct for all the insurance business. intermediaries in the Insurance business are 3) Circular no. IRDA/CAGTS/CIR/LCE/092/ specified clearly in the regulations framed under 06/2010 dated 7th June, 2010 and Circular no: the IRDA Act,1999 vide Insurance Surveyors and IRDA/CAGTS/CIR/142/ 07/2013 dated Loss Assessors (Licensing, professional 25.07.2013 to streamline the procedure for requirements and code of conduct), Transfer of Corporate Agents from one Insurer Regulations,2000, Insurance regulatory and to Other Insurer. Vide the said Circular the Development Authority (Insurance Brokers Authority has barred agents having less than Regulations,2002, Insurance Regulatory and one year service from seeking transfer to Development Authority ( Licensing of Insurance other insurer. Further the Authority has also Agents) Regulations, 2000, and its subsequent mandated time frame for designated persons amendments in 2002, 2007 & 2013 and Insurance of insurer for issuing NOC’s failing which after Regulatory and Development Authority (Licensing elapse of one month from the date of request for of Corporate Agents) Regulations,2002 and its NOC, it will be deemed that the agent has been amendment in 2010. issued NOC. III.3.2 The Authority has issued Guidelines on 4) Circular no. IRDA/CAGTS/CIR/LCE/ Qualifications of Corporate Insurance Executives 093/2010 on Inspection of Corporate Agents and Faculty of Agent’s training Institutes vide by Insurer. circular no. IRDA/ AGENTS/ ORD/17 /JULY 2009 dated 3rd July,2009. The Authority has also issued 5) Issued Standard instructions and guidelines Guidelines on licensing of corporate agents vide vide circular dated 03/06/2010 & 29/07/2013, circular no.017/IRDA/Circular/CA Guidelines/2005 applicable for fresh/ renewal accreditation of dated 14th July, 2005. On- Line and Off-Line Agents training Institutes. III.3.3 The following Regulatory frame work has been prescribed by the Authority to further 6) Order no. IRDA/AGTS/ORD/TRNG/ strengthen the regulatory supervision. 109/07/2010 constituting a committee to 1) Regulations namely Insurance Regulatory recommend examination fee to be charged and Development Authority (Licensing of from the candidates appearing in pre Corporate Agents) (Amendment) recruitment examination for Insurance Agents Regulations,2010 to further amend the and to finalize financial arrangements Insurance Regulatory and Development between III and NSE-IT for conducting the Authority (Licensing of Corporate Agents) above pre recruitment examination. Regulation,2002 to incorporate regulatory 7) Issued Circular IRDA/CAGTS/GTL/ provisions for non compliance of Regulatory LCE/106/06/2010 dated 28.06.2010 laying frame work prescribed for corporate agents. down the procedure for issue/renewal of 2) IRDA (Sharing of Database for Distribution of corporate agency licenses. Vide the above Insurance Products) Regulations, 2010 to 101ANNUAL REPORT 2014-15 circular the Authority has mandated corporate 14) Issued Circular no: IRDA/AGT/GDL/CIR/ designated persons of insurers to obtain its 108/05//2013 dated 30.05.2013 reducing prior approval before granting/ renewing bench mark of passing Agent’s pre- corporate agency licenses. recruitment test to 35% from the earlier bench mark of 50%. The above concession was 8) Issued a notice dated 08/06/2010 withdrawing given to justify the standard of IC-33 book 4261 corporate agency licenses from the developed by CII and competencies of Authority’s database as they were in lapse candidates available in market for insurance state as at 31.03.2010. agency. 9) Issued guidelines Vide Circular no. IRDA 15) Issued Circular no: IRDA/AGT/GLD/CIR/ /CAGTS/ CIR/LCE /039/03/2010 dated 66/04//2013 dated 03.04.2013 allowing 02/03/2010 to deal with applications received insurers to renew agency licenses archived in for corporate agency license from ‘persons’ portal on account of being in lapsed state for belonging to groups which are already more than one year. This permission was engaged as corporate agents/brokers. given to provide agents holding lapsed license 10) Issued Standard Instructions and Guidelines an opportunity to come back to insurance for approval/Renewal of Agents Training industry again. Institutes vide Circular dated 07.12.2011 to 16) Issued Circular no: IRDA/AGTS/MISC/ ensure that only serious professional players CIR/041/01/2014 dated 28.01.2014 notifying come into the business of ATI’s. new IC-34 syllabus for Non-Life Insurance 11) Issued Circular no: IRDA/CAGTS/GDL/ Agent’s pre-recruitment examination. 028/02/2013 dated 18.02.2013 permitting 17) Issued Circular No: IRDA/AGTS/CIR/ standalone health insurance companies to LCE/164/07/2014 dated 11.06.2014 notifying utilize services of other life and/or non-life new IC-33 syllabus for Life Insurance Agent’s insurance companies to distribute their pre-recruitment examination. products. 18) Issued Circular No. IRDA/AGTS/CIR/ 12) Issued Circular no: IRDA/DIST/GDL/ GLD/046/03/2015 dated 16.03.2015 notifying MISC/183/09/2013 dated 11.09.2013 the “Guidelines on Appointment of Insurance permitting Agriculture Insurance Company to Agents,2015” which shall come into force with utilize services of other life and/or non-life effect from 01.04.2015 insurance companies to distribute their products. 19) As per Circular No. IRDA/AGTS/CIR/ GLD/081/04/2015 dated 22.04.2015 new 13) The Agency Distribution Department has course material IC 32 is launched w.e.f. Automated administrative procedures 01.07.2015. Candidates who qualify in IC-32 involved in granting prior approvals for shall be eligible to be appointed by issue/renewal of corporate agency licenses. Standalone Health Insurer as agents. Also The Automated system is in place new syllabus for IC 33 with Health Insurance w.e.f.01.09.2013. The new system ensures chapters launched w.e.f. 01.07.2015. smooth process flows and stringent due diligence. 102ANNUAL REPORT 2014-15 Online Broker Examinations: III.4 Specifying the code of conduct for surveyors and loss assessors III.3.4 The conduct of insurance broker examinations has been made on-line w.e.f. 16th III.4.1 The duties and responsibilities of a surveyor June, 2014. The NIA, Pune in association with and loss assessor are specified in Chapter IV of the NSEiT is conducting these examinations online Insurance Surveyors and Loss Assessors across the country. The mandatory requirement of (Licensing, Professional Requirements and Code training has also been made online which has of Conduct) Regulations, 2000. The Regulation 13 resulted in significant reduction in cost of training. inter alia states that: This has been made available from June 2015. At l Major duty and responsibility of a surveyor and present the Insurance Institute of India, Mumbai loss assessor shall be to investigate, manage, has been entrusted with the responsibility of quantify, validate and deal with losses arising conducting training for insurance brokers as well from any contingency and report there upon. as employees of Insurance Marketing Firm. It is also contemplated to make the mandatory renewal l All licensed surveyors and loss assessors shall training of the insurance brokers online very soon. work with competence, objectivity and The efforts of the Authority in reforming of the professional integrity by strictly adhering to the training requirements for insurance brokers have code of conduct envisaged in the Regulations. been received well by all stakeholders and it is The code of conduct regarding the professional noticed that the number of enrolment for training and ethical requirements for conduct of their has increased. professional work is specified in Chapter VI of the Online Training and Examination for IMF Regulations. The Regulation 15 elaborates on the III.3.5 The Authority has approved Insurance code which, inter alia, stipulates that a surveyor Institute of India, Mumbai as approved training and loss assessor shall: institute for on line training for Principal Officer and l behave ethically and with integrity in the Insurance Sales Persons for the prospecting IMF. professional pursuits; The syllabus is based on the business requirements of IMF. The module has been so l strive for objectivity in professional and designed that the candidate can download the business judgment; digital training material on to the PC and completes l act impartially when acting on instructions from the lessons. At the end of each lesson, self assessment tests are available and the candidate an insurer in relation to a policyholder’s claim has to complete the same. For each such under a policy issued by that insurer; and completion one hour training credit is given. After l conduct himself with courtesy and completion of requisite number of hours of training, consideration with all people he comes into as per the eligibility of the candidate, a training contact during the course of his work, etc. completion certificate is issued which enables the candidate to take on line examination at NIA, Pune. The code of conduct further states that a surveyor III.3.6 National Insurance Academy, Pune in shall not accept or perform work which he is not association of NSEiT conducts the examination for competent to undertake, unless he obtains some IMF on line at five locations. The pass percentage advice and assistance, as will enable him to carry for Principal Officer is 50% where as for ISP is 35%. out the work competently; and will carry out his 103ANNUAL REPORT 2014-15 professional work with due diligence, care and skill placed on website for comments and and with proper regard to technical and suggestions from stakeholders and public. professional practice. n Order no. IRDA/SUR/REG/ORD/071/ III.4.2 Further, in order to protect the interest of 04/2015 dated 10th April, 2015 on Weblist of policyholders, the Authority has framed the IRDA Surveyors and Loss Assessors (Individual & (Protection of Policyholders’ Interest) Regulations, Corporate) with IIISLA Membership. Vide this 2002. Adherence to code of conduct by surveyors notice surveyors and insurance companies and loss assessors has been further emphasized were informed about Authority has published under Regulation 9 of the said Regulation, while the weblist of individual and corporate dealing with settlement of claims in respect of non- surveyors and loss assessors with IIISLA life insurance policy. membership details and eligible departments were ticked with ‘##’ sign. The surveyors and During the year 2014-15, the Authority has issued loss assessors were also advised to the following Circulars/Orders: show/submit their IIISLA membership n Order no. IRDA/SUR/MISC/ORD/ 189/2014 certificate alongwith license to the dated 11th August, 2014 on Appointment of underwriters/insurers for the purposes of Election Officer to conduct Council Elections empanelment and survey work allocation. of Indian Institute of Insurance Surveyors and III.5 Promoting efficiency in the conduct of Loss Assessors(IIISLA). Vide this order Mr. K. insurance business V. Krishnan, General Insurance Council was nominated as Election Officer for conducting Insurance Repositories full council election of IIISLA. III .5.1 The Insurance Repository System is an n Notice no. IRDA/SUR/NTC/MISC/ initiative of the Authority to de-materialise 269/12/2014 dated 23rd January, 2015 on insurance policies. To achieve this objective, the Online System for Licensing and Renewal. Authority issued the guidelines on Insurance Vide this notice all surveyors were informed to Repositories and electronic issuance of insurance apply for license online alongwith details of policies in April, 2011. The Authority granted IIISLA membership. Vide this notice, contact certificates of registration to five entities to act as details of surveyor department at New Delhi Insurance Repositories Regional Office and applicable fee were also III.5.2 The Authority has further issued “Guidelines published for information. on Pilot launch of the Insurance Repository n Exposure Draft dated 7th April, 2015 on draft System” for boosting the existing system and Surveyors and Loss Assessors Regulations, understanding the market trend. The feedback on 2015 for comments/ suggestions of this initiative was very positive and an approximate stakeholders. Consequent upon 1.8 lakh eIA (electronic Insurance Accounts) have promulgation of Insurance Laws Amendment been opened. Further, around 50,000 Act, 2015, section 64 UM of Insurance Act, policyholders evinced interest for conversion of 1938 was amended necessitating significant their hard copy in electronic form. changes in existing Insurance Surveyors and III.5.3 Subsequently in May, 2015, the Authority Loss Assessors Regulations. Accordingly, has issued the “Revised Guidelines on Insurance Surveyors Regulations were amended and Repositories and electronic issuance of Insurance 104ANNUAL REPORT 2014-15 TABLE III.1 INSURANCE REPOSITORIES APPROVED BY THE AUTHORITY (AS AT 31st MARCH, 2015) S No. Name 1 National Insurance-policy Repository, NSDL Database Management Limited 2 Central Insurance Repository Limited 3 CAMS Repository Services Limited, Chennai 4 SHCIL Projects Limited, Navi Mumbai 5 Karvi Insurance Repository Limited, Hyderabad policies”. At present, there are total 7,41,481 taken up for development and implementation eIA accounts and a total of 3,38,065 policies during the initial phase. converted into electronic mode. The GI Council had involved the Non-life insurers The list of approved Insurance Repositories is during the development, testing and given (Table III. 5.1). implementation of the ETASS system. In its first phase, the ETASS is designed to support the ‘Fire’ Electronic Transaction Administration and coinsurance transactions and was formally Settlement System launched on 27th April, 2015. The Authority in order III.5.4 The Electronic Transaction Administration to facilitate smooth operationalization of the and Settlement System (ETASS) is a clearing ETASS and for its continued development and house system that facilitates sharing of documents patronage had issued ‘Guidelines for ETASS and accounting statements pertaining to the Administration’ on 11th May, 2015. The GI Council coinsurance and reinsurance transactions and is has been designated as the ‘Administrator’ and is entrusted with the responsibility of extending the designed to aid easy reconciliation of inter-entity ETASS system to support the needs of other lines balances. of coinsurance business and later to reinsurance. III.5.5 As a by product to this system, faster The GI council is expected to come out with a settlement, greater discipline and efficiency in detailed project plan soon. As the system conduct of the coinsurance and reinsurance stabilizes, ETASS would support settlements and transactions will also be achieved. The Authority would support seam-less transaction exchange had entrusted responsibility of developing and between multiple players – Insurers, Reinsurers implementing the ETASS system to the General and Intermediaries. Insurance (GI) Council. Data Standards III.5.6 Since the scope of development is huge and III.5.7 The Authority had embarked on the task of time consuming, the pain point of coinsurance compiling the data standards to facilitate easy transactions that primarily involves Indian Insurers interfacing of IT systems of multiple entities in the and contributes significantly to the inter-company insurance sector. The data standards bring about balances is prioritised over the reinsurance common definitions for the information exchange. transactions. Also, within the coinsurance space, This helps in easy interfacing of multiple systems ‘Fire’ Line of Business (LOB) that majorly both within and outside an organization. contributes to the coinsurance transactions is 105ANNUAL REPORT 2014-15 III.5.8 In order to support the Insurance Repository assigned capital of `10 crores and a minimum net System, standard Extensible Markup Language owned funds of ` 5000 crores to be eligible to apply for (XML) schema consisting of the field definitions, a registration to open an IIO. field properties and message content was earlier The Government of India had granted several shared for exchange of data between multiple exemptions to the entities operating in the IFSC. players for the Life Segment. Similarly, schemas The IFSC would thus provide the required platform have been finalized to support the needs of ‘Health’ for the creation of “Reinsurance Hub” in the country and ‘Motor’ lines of business. These schemas where domestic as well as foreign reinsurance would support the ‘individual lines’ of Non-life business can be transacted. insurance transactions in the Insurance Repository System. Schemas would soon be devised to III.6 Promoting and regulating professional support other lines of Non-life business so as to organizations connected with the insurance enable the complete on-boarding of the Non-life and reinsurance business insurers onto the IR system. III.6.1 The Life Insurance Council and the General III.5.9 International Financial Service Centre Insurance Council which are statutory bodies under the Insurance Act, 1938, represent the life The Government of India with the objective of insurance companies and non-life insurance creating high value jobs from financial services companies respectively. These councils contribute production in the country and to create an avenue towards healthy growth of the industry by way of into financial globalisation had set up International discussions, representations before various Financial Service Centre (IFSC) at GIFT City, authorities, spreading insurance awareness, Gujarat. One of the objectives of the IFSC is also to providing inputs on existing/ proposed regulatory provide an environment where controlled stipulations. Development of these self-regulatory experiments with new ideas in policy can take bodies augurs well for the industry to put across place. their view points on critical areas for the growth of As a part of this initiative, Government of India had the industry. identified Reinsurance to be allowed under the In the same vein, brokers licensed by the Authority regulatory supervision of the Authority. In are necessarily required to be members of the furtherance of this objective the Authority had Insurance Brokers Association of India (IBAI). issued the International Financial Service Centre Guidelines, 2015 that provides the enabling III.6.2 Indian Institute of Insurance Surveyors and regulatory framework for registration and conduct Loss Assessors (IIISLA), an institute promoted and of reinsurance business in India. established by Authority and incorporated under Section 25 of the Companies Act, 1956. As per the guidelines issued by the Authority, both Membership of the institute is mandatory for grant Indian registered insurers/reinsurers as well as of surveyor license. The institute works as a self- insurers/reinsurers will be eligible to register with regulatory body. the Authority to transact foreign and domestic reinsurance business by setting up an IFSC Health Insurance Forum Insurance Office (IIO). III.6.3 The Health Insurance Forum which was originally constituted on 02nd February 2012 with Foreign registered insurers/reinsurers besides representation from various stakeholders of the fulfilling other criteria will have to demonstrate an 106ANNUAL REPORT 2014-15 health insurance business was reconstituted industry, the Authority in association with Andhra during December, 2014 by drawing members from Pradesh government established a professional Department of Financial Services, MoF, GoI, institute, Institute of Insurance and Risk President Indian Medical Association, Secretary Management (IIRM) in the year 2002 for training General, General Insurance Council, Secretary and imparting professional courses in insurance General Life Insurance Council, Apollo Hospitals, and related subjects. The Authority continues to Hyderabad and Bharathi Axa Life Insurance Com. support the institute in its endeavours. With this newly inducted members the total III.6.6 The Authority has also recognised the need membership of the forum was stood at 24. to have reliable, timely and accurate date for the III.6.4 During the financial year 2014-15, the forum efficient functioning of the insurance companies met twice in August 2014 and February 2015. and also in the interest of the policyholders. To During the meeting held in the month of August, process the available transaction level data and 2014 the forum, inter alia, deliberated on the disseminate it for the benefit of various matters of ‘promoting quality in health care through stakeholders, the Authority constituted the Health Insurance and Categorization of Health Insurance Information Bureau (IIB) in 2009 in the care providers’ and ‘Insurance structure for form of an advisory board to obtain, process and Chronic Care and Elderly Care’. On ‘promoting disseminate the transaction level data relating to quality health care’ there were views for insurance industry. In 2012-13, the Bureau was harmonizing the government and private space to registered as a society making it a separate legal facilitate de-duplication and cost reduction. With entity. regard to insurance structure for elderly care it was III.6.7 The Authority also has statutory considered that due to increasing longevity the representation in the council of the Institute of care cost burden may not be manageable and it Actuaries of India, a statutory and professional was suggested that OPD costs of Health care body for actuaries. The erstwhile Actuarial Society providers should follow a protocol. of India established in 1944 was dissolved in 2006 During the meeting held in February, 2015, the and Institute of Actuaries of India (IAI) was forum, inter alia, discussed the FICCI’s concept established as a statutory body under the Actuaries note on ‘Categorization of Network Hospitals’, CII’s Act, 2006 for regulation of profession of actuaries concept note on Claims and Medical Inflation. The in India. The council is responsible for the forum deliberated on the need for identifying management of the affairs of the Institute. certain factors such as the technological change III.7 Levying fees and other charges for and relative price increase, age-dependent carrying out the purposes of the Act consumption of medical services etc. The forum III.7.1 The existing fee structure for insurers and members decided to further discuss on the matter. intermediaries is indicated in Annexure 2. The forum aims to work further on these areas in III.8 Calling for information from, undertaking consonance with various stakeholders for inspection of, conducting enquiries and enhancing the availability of affordable Health investigations including audit of the insurers, Insurance Coverage to all the people. intermediaries, insurance intermediaries and III.6.5 Recognising the need for availability of talent other organizations connected with the pool on a continuous basis for the insurance insurance business 107ANNUAL REPORT 2014-15 III.8.1 The Authority, through the Inspection inspection. Similarly, in 13 inspected non-life Department, pursues its on-site supervision of the companies there was 4 comprehensive inspection regulated entities with regard to their observance and 9 focused inspection. Under non-life inspected of prescribed laws, regulations, guidelines, insurance companies there was 3 standalone standards, etc. Thus, inspections aim at fulfilling health insurers were inspected, out of which one the Authority’s mission of protection of interests of was comprehensive inspection and two were existing and prospective policyholders including focused inspection. The focus areas of some of the their beneficiaries. targeted / focused inspections included grievance redressal mechanism of the insurers, payments to III.8.2 The IRDA Act, 1999 lays down the statutory specific class of intermediaries and other related provisions to carry out on-site inspections including entities, specific complaints received by the investigation of insurance companies, Authority from external entities/policyholders, etc. intermediaries, insurance intermediaries and other Theme based inspections were also conducted in organizations connected with the insurance the insurance intermediaries for ex: re insurance business. Supervisory oversight, at the minimum brokers, group companies of Motor Dealers and involves a two-pronged approach, viz., off-site Banks etc. examination and on-site inspection. Based on the policy approach for inspections, the outcomes of III.8.4 It may be recalled that for facilitating the off-site analysis of various financial and statistical disposal of inspection findings, a separate information submitted by the insurance entities and compliance wing was formed by the Authority in information collected from other functional February 2014. The wing got converted to departments in the Authority, comprehensive and Enforcement Department and was established in focused inspections are undertaken at the site of the Authority in January 2015. The establishment the regulated entities for assessment of their of the Enforcement Department has been functioning by examination of relevant records, necessitated to undertake actions like Adjudication books of accounts and business activities. The proceedings envisaged in the Insurance standard guidance notes on inspection are suitably Amendment Act 2015.Thus, henceforth, the customized to meet assessment needs of the Enforcement Department of the Authority will specific characteristics of the inspected entity undertake disposal of inspection findings, ensure based on such parameters as size, nature of compliance by the regulated entities of different business-mix, complexity of various internal provisions of Act and Regulations applicable to processes, solvency ratio, distribution system, risk them and will carry out any other enforcement appetite of the promoters/directors, business actions as and when needed to be taken. planning, risk management and corporate III.8.5 The regulatory action on various inspection governance framework and overall risk profile. findings is decided only after the inspected entity III.8.3 During 2014-15, the Inspection Department has been given an opportunity to put forth its views has conducted 66 inspections out of which 18 were / submission. In all cases, the laid down process is Insurance companies (5 Life insurers and 13 Non- followed to take the inspection reports to their Life insurers), 27 were Brokers, 6 were TPAs, 9 logical conclusion. were Corporate Agents, 2 were Web Aggregator and 4 were Unlicensed Entity. Out of 5 inspected life insurance companies 2 were comprehensive Inspection and remaining 3 were focused 108ANNUAL REPORT 2014-15 III.9 Control and regulation of rates, In case of intermediaries, books of accounts and advantages, terms and conditions that may be financial statements are required to be maintained offered by insurers in respect of general in the form and manner prescribed under the insurance business not so controlled and respective regulations/ circulars/ guidelines. regulated by the Tariff Advisory Committee Wherever the Authority has not prescribed any under section 64U of the Insurance Act, 1938 (4 specific instructions in the matter of form and of 1938) manner in which books of accounts are to be III.9.1 With de-tariffing of non-life industry w.e.f 1st maintained, provisions of Companies Act and other January, 2007, for all classes of tariff business relevant Acts are applicable. except motor third party cover, the first steps were initiated to ensure that the insurance companies III.11 Regulating investment of funds by have the freedom in pricing of the products. For insurance companies: motor third party cover, which is a statutory III.11.1 Investment of funds by the insurance insurance cover required under the provisions of companies is regulated by the IRDA (Investment) Motor Vehicles Act, 1988, the Authority has Regulations,2000,amended from time to time and retained the powers to determine the rates, terms by various circulars and guidelines issued from and conditions. The Authority vide order no. time to time. IRDA/NL/NTFN/MOTP/066/04/ 2011 dated 15th April, 2011 notified that long intervals between rate III.11.2 Facilitating market development revision puts an avoidable strain on policyholders During 2014-15, the Authority had undertaken the as well as on the insurance companies and following steps for market development: therefore the rates would be reviewed and adjusted annually in line with the formula notified 1. Insurers were permitted to deal in Financial by the Authority. As per the prescriptions, the Derivatives only to the extent permitted and in revision in the premium rates has been pegged to accordance with the guidelines on Fixed the cost inflation index, average claim amounts, Income Derivatives vide Circular no. frequency and expenses involved in servicing the INV/GLN/008/2004-05dt.24/08/2004. With the motor TP business. The revised premium rates for changing Investment environment, product the third party motor insurance cover for the year structures, change in guidelines by other 2015-16 were notified by the Authority on 31st regulators, Authority felt the need to withdraw March 2015. the earlier guidelines and issued fresh guidelines under Reg. 15 of IRDA (Investment) III.10 Specifying the form and manner in which Regulations, 2000 vide Cir. No books of accounts shall be maintained and IRDA/F&I/INV/CIR/138/06/2014 dated 11th statements of accounts shall be rendered by Jun,2014 to address the need of longer term Insurers and other insurance intermediaries Interest Rate Derivatives . III.10.1 The books of accounts and financial statements of insurers are maintained in the form 2. In line with the Securities and Exchange Board and manner prescribed under the IRDA of India (SEBI) guidelines for providing (Preparation of Financial Statements and Auditor’s dedicated debt segment on stock exchanges, Report of Insurance Companies) Regulations, Insurers were allowed to become a proprietary 2002, amended from time to time and also by trading member of a SEBI approved stock various circulars and guidelines issued from time to exchange for carrying out trades in the debt time. segment. 109ANNUAL REPORT 2014-15 III.11.3 Providing alternate investment avenues the deficiency within a specified period not During 2014-15, the Authority had permitted exceeding six months. the insurers the following alternate III.12.3 In case of non-life insurance, the Required investment avenues: Solvency Margin (RSM), shall be the maximum of 1. Insurers were allowed by the Authority to invest the fifty crore of rupees (one hundred crore of in “onshore rupee bonds” issued by Asian rupees in the case of reinsurer); or higher of RSM-1 Development Bank and International Finance and RSM-2 computed. The RSM-1 is the required Corporation as ‘approved investments’ by solvency margin based on net premiums, and shall exercising the powers conferred by Insurance be determined as twenty per cent of the amount Act, 1938 vide sec27A(1)(S) for Life Insurers which is higher of the gross premiums multiplied by and vide 27B(1)(j) for General Insurers subject a factor and the net premiums. For the purpose of to the stipulations mentioned in the related calculation of RSM-1, premium of the last 12 circular. months on rolling basis will be taken into account. The RSM-2 is the required solvency margin based 2. Further, Insurers were permitted to reckon on net incurred claims, and shall be determined as Investments in the Long Term Bonds issued by thirty per cent of the amount which is the higher of Banks for Financing Infrastructure and the gross incurred claims multiplied by a Factor Affordable Housing towards mandatory and the Net Incurred claims. ‘Infrastructure& Housing sector’ exposure requirements. III.13 Adjudication of disputes between Insurers and Intermediaries or Insurance III.12 Regulating maintenance of margin of Intermediaries solvency III.13.1 As per Regulation 51(2) of IRDA (Insurance III.12.1 Every insurer is required to maintain a Brokers) Regulations, 2002, any disputes arising Required Solvency Margin as per Section 64VA of between an insurance broker and an insurer or any the Insurance Act, 1938. Every insurer shall other person either in the course of his maintain an excess of the value of assets over the engagement as an insurance broker or otherwise amount of liabilities of not less than an amount may be referred to the Authority by the person so prescribed by the IRDA, which is referred to as a affected; and on receipt of the complaint or Required Solvency Margin. The IRDA (Assets, representation, the Authority may examine the Liabilities and Solvency Margin of Insurers) complaint and if found necessary proceed to Regulations, 2000 describe in detail the method of conduct an enquiry or an inspection or an computation of the Required Solvency Margin. investigation in terms of these regulations. III.12.2 In the case of life insurers, the minimum III.13.2 During the year under review, the Authority Required Solvency Margin is rupees fifty crore has not received any such requests for (rupees one hundred crore in the case of reinsurer) adjudication. and arrived at in the manner specified by the Authority. The Insurance Laws (Amendment) Act, III.14 Supervising the functioning of the Tariff 2015 specifies a level of solvency margin known as Advisory Committee control level of solvency, on the breach of which, III.14.1 After the de-tariffing of non-life insurance the Authority shall direct the insurer to submit a business w.e.f., 1st January, 2007 the regulatory financial plan indicating a plan of action to correct and administrative role of the Tariff Advisory 110ANNUAL REPORT 2014-15 Committee in controlling rates, terms and III.15.1 The Authority has not prescribed any conditions in non-life insurance sphere is no longer percentage of the premium income of the insurer to in existence. The Central Government had finance schemes for promoting and regulating constituted a Committee for distribution of existing professional organizations referred to in para (6). employees of TAC, including retired employees’ III.16 Specifying the percentage of life liabilities and surplus among the five general insurance business and general insurance insurance companies. The Order of the Central business to be undertaken by the insurers in Government assigned the task of residual activities the rural and social sector and court cases of Tariff Advisory Committee to the III.16.1 The obligations as stipulated in the IRDA IRDAI. (Obligations of insurers towards the rural or social III.14.2 Sections 64U, 64UA, 64UB, 64UC, 64UD, sector) Regulations, 2002 lay down the 64UE, 64UF, 64UG, 64UH, 64U-I, 64UJ, 64UK and requirements to be complied with by the insurers 64UL of the Insurance Act, which stipulated the during the first five years of their operations. In provisions pertaining to “Tariff Advisory committee case of the public sector insurers these obligations and control of tariff rates” have been omitted under have been linked to their performance in the year the Insurance laws (Amendment) Act, 2015. 2001-02 in these sectors. With the amendments which were notified in 2007-08, the obligations of Section ULA has been inserted which reads as the private insurers up to the tenth year of follows: 64ULA. (1) Notwithstanding anything operations have been laid down. Simultaneously, contained in this Part, until the rates, advantage the obligations of the public sector insurers were and terms and conditions laid down by the Advisory also revisited. committee under section 64UC are de-notified by the Authority with effect from such date as the The obligations of the private insurers are as Authority may by notification in the Official Gazette under: determine, and the rates, advantages and terms III.16.2 Rural sector and conditions are decided by the insurer concerned, the rates, advantages and terms and l In respect of a life insurer: Seven per cent of the conditions notified by the Advisory Committee shall total policies written direct in the first financial continue to be in force and shall always be deemed year to twenty per cent in the tenth financial to have been in force and any such rates, year onwards. advantages and terms and conditions shall be l In respect of a non-life insurer: Two per cent of binding on all the insurers.(2) The Authority shall, in total gross premium income written direct in the consultation with the Central Government, prepare first financial year to seven per cent from the a scheme for the existing employees of the Tariff ninth financial year onwards. Advisory Committee on its dissolution, keeping in view the interests of such employees on such III.16.3 Social Sector terms and conditions as it may, by order, l In respect of all insurers: Five thousand lives in determine.’’ the first financial year to fifty five thousand lives in the tenth financial year and onwards. III.15 Specifying the percentage of premium income of the insurer to finance schemes for In respect of the existing insurers as on the date of promoting and regulating professional commencement of IRDA Act, 1999 (four non-life organizations referred to in para ‘6’ insurers and LIC), as indicated above, the 111ANNUAL REPORT 2014-15 regulations provided that the quantum of insurance l 5.50 lakh lives whichever is higher. business to be done in the rural and social sectors The obligations of the insurers underwent an shall not be less than what was recorded by them increase of ten per cent in each of the financial for the accounting year ended 31st March, 2002. years 2008-09 and 2009-10, over the number of Based on the amendment regulations notified by persons actually covered in the financial year the Authority, the obligations of these insurers 2007-08. towards the rural and social sectors for the financial The obligations applicable for 2009-10, are also year 2007-08 to the financial year 2009-10 and applicable for all financial years thereafter. subsequent financial years were as under: III.16.6 In addition, with a view to giving fillip to III.16.4 Life Insurance Corporation of India (LIC) micro insurance and to aligning the rural and social (a) Rural Sector Obligations sector obligations with the micro insurance l Financial year 2007-08: twenty four per cent; regulations, the manner of compliance has been and linked to the micro insurance regulations. Further, in order to provide time to insurance companies to l Financial years 2008-09 and 2009-10: twenty establish operations to enable them to comply with five per cent of the total policies written direct in their obligations towards the rural and social that year. sectors, amendments have been made to the The obligations applicable for 2009-10 are also regulations. It has been provided that in cases applicable for all financial years thereafter. where an insurance company commences operations in the second half of the financial year (b) Social Sector Obligations and is in operations for less than six months as at Twenty lakh lives should be covered for the years 31st March of the relevant financial year: 2007- 08 to 2009-10. l No rural or social sector obligations shall be The obligations applicable for 2009-10 are also applicable for the said period; and applicable for all financial years thereafter. l The annual obligations as indicated in the III.16.5 Non-life insurers: regulations shall be reckoned from the next (a) Rural Sector Obligations financial year which shall be considered as the first year of operations for the purpose of l Financial year 2007-08: six per cent compliance. l Financial year 2008-09 and 2009-10: seven per In cases where an insurance company cent of the total gross premium income written commences operations in the first half of the direct in that year. financial year, the applicable obligations for the first The obligations applicable for 2009-10 are also year shall be 50 per cent of the obligations as applicable for all financial years thereafter. specified in these Regulations. (b)Social Sector Obligations For the financial year 2007-08: l the average of the number of lives covered by the respective insurer in the social sector from the financial years 2002-03 to 2004-05 or 112ANNUAL REPORT 2014-15 PART IV ORGANISATIONAL MATTERS IV.1 Organisation Authority Meetings : IV.1.1 Change of name of IRDA to IRDA of India 1) 83rd Meeting of the Authority held on 27th May, The Insurance Regulatory and Development 2014 Authority (IRDA) shall henceforth be known as 2) 84th Meeting of the Authority held on 4th June, “Insurance Regulatory and Development Authority 2014 of India” (IRDA of India) in view of amendment to 3) 85th Meeting of the Authority held on 25th section 2 (1) (b) of the Insurance Regulatory and September, 2014 Development Authority Act, 1999 vide Chapter IV , section 105 of “The Insurance Laws (Amendment) 4) 86th Meeting of the Authority held on 23rd Act, 2015” December, 2014 IV.1.2 Shri T S Vijayan, appointed as Chairman of 5) 87th Meeting of the Authority held on 27th the Authority by Government of India with effect March, 2015 from 21st February, 2013 is continuing in the post. Shri R K Nair, Whole-time Member had retired Insurance Advisory Committee Meetings : from the services of the Authority on 17th March, 1) 24th Meeting of the IAC held on 20th 2015. Ms Pournima Gupte was appointed by September, 2014 Government of India as Whole-time Member 2) 25th Meeting of the IAC held on 27th March, (Actuary) of the Authority with effect from 13th 2015 January, 2015. Shri M.Ramaprasad, Member(Non-Life) and Shri D D Singh, IV.3 HUMAN RESOURCES Member(Distribution) continued to be Whole-time IV.3.1 The staff strength and the need for additional Members, of the Authority during the year resources are reviewed from time to time. The staff 2014-15. strength of the Authority as on 31-03-2015 is as IV.1.3 CA Manoj Fadnis, President of the Institute under:- of Chartered Accountants of India, became Part- time Member of the Authority in the place of CA Sl. As on As on K.Raghu on 12th February, 2015. Shri Anup Class No. 31-03-2014 31-03-2015 Wadhwan, Joint Secretary, Department of Financial Services, Ministry of Finance, Prof. V K 1 I 143 142 Gupta, Director, Management Development 2 III 3 3 Institute (MDI) and Shri S B Mathur, Former Chairman, LIC of India continued to be Part-time During the year 2014-15, one Officer in the cadre of Members of the Authority during the year. Assistant Director had resigned from the services of the Authority and no recruitment took place IV.2 MEETINGS OF THE AUTHORITY during the year 2014-15. IV.2.1 Five meetings of the Authority were held during the financial year 2014-15. Two meetings of l With the induction of one Officer on Deputation, the Insurance Advisory Committee were convened the number of Officers on Special Duty stood at during the same period. The details are given 18 as on 31-03-2015. hereunder : 113ANNUAL REPORT 2014-15 The following promotions took place during the year 2014-2015: Feeder cadre Promoted cadre Number promoted Deputy Director Joint Director 4 Senior Assistant Director Deputy Director 4 Assistant Director Senior Assistant Director 22 Junior Officer Assistant Director 4 Assistant Junior Officer 24 l Grievance Redressal Committee was IV.4.2 The Committee felt the need to conduct reconstituted on 26-08-2014 with the following workshop/s to educate employees on the Act Members: Shri Justice Gopal Rao, Shri R.K. provisions and also orientation programmes for Nair, Member (F&I), MD,IIRM and Sr. JD (Gen) employees. as the Convener. IV.5 PROMOTION OF OFFICIAL LANGUAGE l Shri M.S.Jaya Kumar, Deputy Director, was (O.L.) designated as Chief Information Security IV.5.1 In pursuance of Official Language Policy of Officer on 28-08-2014, to act as a point of the Govt. of India efforts are continuing towards contact to interface with the Indian Computer increasing the use of Hindi in Official work. To Emergency Response Team (CERT) and propagate Official Language Hindi, amongst National Critical Information Infrastructure officers and employees, Hindi fortnight was Protection Centre (NCIIPC), the national nodal observed in a befitting manner in all spheres of agency for all measures to protect nation’s IRDAI, various literary competitions like Official critical information infrastructure. Words/ Clauses Translation, Letter & Office Notes, Essay Writing, Hindi Extempore, Hindi Poem, l A consultant each for Consumer Affairs, Song, etc. were conducted during Hindi fortnight Information Technology, Communications, celebration in which large number of officers/ Legal and HR areas has been appointed employees participated. The in-house Journal through due process and are continuing. “Spandan” was published in bilingual form i.e. IV.4 INTERNAL COMMITTEE FOR WOMEN Hindi and English. IRDAI’s monthly journal for EMPLOYEES insurance industry has a separate Hindi section. IV.4.1 In terms of provisions of ‘The Sexual IV.5.2 All documents, laid on the table of Harassment of Women at Workplace (Prevention, Parliament, were also brought out in bilingual form. Prohibition and Redressal) Act, 2013’ an internal Sustained efforts were made to ensure proper Complaints Committee has been set up vide office compliance of the Official Language Policy of the order ref: IRDA/ADMN/ORD/PER/41/3/2013 Union enshrined in the Constitution of India, the dated 1st March, 2013 with a view to redressing the Official Languages Act, the Official Languages complaints in this regard as also to ensure Rules, the Annual Programme and orders issued compliance of various provisions laid down in the by the Department of Official Language from time Act. to time. All documents coming under the purview of 114ANNUAL REPORT 2014-15 Sec. 3(3) of the O.L. Act i.e. important ‘Service Price Index’ and another for ‘Service notifications/regulations, circulars, orders, Production Index’ for the Insurance services. The administrative and other reports, annual reports, first sub-committee (for developing the service press communiqués, licenses, contracts, price index for the insurance sector) was agreements were converted into bilingual form. constituted by the Ministry of Commerce and The letters, representations/ appeals/ RTI Industry in December 2011. The second applications signed in Hindi were replied in Hindi subcommittee (for the development of production ensuring compliance of Rule 5 and Rule 7 (2) of the index for insurance sector) was constituted by the O.L. Rules. Ministry of Statistics and Programme Implementation in February 2012. IV.5.3 Rajbhasha Vibhag developed an online tool As on 31.3.2015, the Sub-Committee on Service for submission of data related to “Working Production Index held five meetings and the Sub- Knowledge of Hindi” and “Quarterly Progress Committee on Service Price Index held six Report” and made it available on IRDAI’s Intranet, meetings to deliberate on various issues as given which can also be submitted with the help of cloud in the terms of references. Considering the computing. All major notifications which are related commonality of issues between the Insurance to public interest were published on IRDAI website Price Index and Insurance Production Index, the in bilingual form. All official claim forms and annual third meeting of both the committees was a joint confidential reports of employees are provided in one. Both the reports are likely to be submitted in bilingual form on the intranet. The Authority is the following year. making all efforts to promote usage of official language Hindi. IV.7 STATUS OF INFORMATION TECHNOLOGY IV.6 RESEARCH & DEVELOPMENT The focus area during this year was to ensure that the Business Analytics Project which takes care of IV.6.1 The Department continues to be the nodal the data requirement of IRDAI and also automates point for the compilation of the Annual Report and various functions of the operational departments the Handbook on Indian Insurance Statistics, like licensing, product filing and advertisements which is an annual publication consisting of time- etc., was rolled out entirely. series data. IV.6.2 Consequent upon the publication of first IV.7.1.1 BUSINESS ANALYTICS PROJECT edition of the Handbook on Indian Insurance in (BAP) 2008, the Research & Development department Many of the modules of this project were made continued to extend the coverage of this operational during this year after successful publication in order to meet the increasing needs of completion of user acceptance tests (UAT) by the various stakeholders in the industry. The 7th respective user group/operational departments edition of the handbook was published in March and the hands on training to the end users. 2014; with Eighty Nine time series data tables Progress during the year included in it. The department continues to strive at improving the coverage and content of the 1. More than 90% of the project development handbook in its 8th edition, which is likely to be works were completed. released in December 2015. 2. The following modules were made operational IV.6.3 The Government of India has constituted during the year. two sub-committees, one for the construction of 115ANNUAL REPORT 2014-15 1. F&A life Various enhancements were also carried out in the existing internal applications during this year and 2. F&A Nonlife the abstract of the same are as follows: 3. Submission of AAAR,ARA and Re- 1. Renewal of Insurance repositories insurance returns 2. Renewal of referral applications 4. Office filing – Non-life 5. Advertisement –Life IV.7.1.3 Other activities 6. Filing of returns – Brokers In addition to the above, the following activities have also been carried out during the year. 7. Filing of returns – Health a) Upgradation of internet leased line to 10 8. Filing of returns – Non-life Mbps 9. Advertisement –Non Life b) Security Audit of IRDAI’s website 10. Product filing – nonlife c) Implementation of SSL in IRDAI’s website 11. Filing of returns – Life d) Finalisation of AMC for desktops and UPSs 12. Advertisement –Health IV.8 ACCOUNTS 3. Hands on training to insurers on the above IV.8.1 The accounts of the Authority for the modules Financial Year 2014-15 have been audited by the 4. Hands on training for Brokers in all zones on Comptroller and Auditor General of India (C&AG). Electronic data filing Pursuant to the provisions of Section 17 of IRDA Insurers have been advised to submit the data for Act, 1999, the audited accounts along with the the past two financial years and also continue the audit report are required to be forwarded to the electronic submission along with manual system in Government of India to be placed in both the parallel. The manual fillings shall be dispensed houses of Parliament. with gradually once the operations of these The audited accounts for the financial year modules fully stabilise. 2013-14 were laid before the LokSabha on 5th IV.7.1.2 Internal Applications December 2014 and before the RajyaSabha on 9th The following new applications were developed December 2014. and implemented during this year. IV.9 IRDAI JOURNAL 1. Application for registration of insurance IV.9.1 IRDAI Journal is a ‘Professional Journal’ marketing firm published by IRDAI every month is a collection of 2. HRMS - ERP scholarly articles and industry related information pertaining to the area of insurance. Articles for the a. Automation of travel claims IRDAI Journal are usually written by specialist and b. Display of attendance experts in the area of Insurance. IRDAI Journal c. Status of staff reimbursements strives to gather, process, and disseminate information and news related to the Insurance for 3. Application for maintenance of its audience and aims to publish articles that are communications to the insurers Insurance information-based. 116ANNUAL REPORT 2014-15 The list of contributors for the Journal in the form of the practice has also enabled the coverage of articles, research papers, etc., has been going up articles from various contributors; thereby steadily with several new authors evincing a keen widening the scope of intellectual content in the interest in writing for the Journal; and this has Journal. resulted in a good source of varied opinion - both IV.10 ACKNOWLEDGEMENTS domestic as well as international. The demand for the Journal has been growing as always, thereby IV.10.1 IRDAI would like to place on record its indicating the continued interest of various appreciation and sincere thanks to the Members of stakeholders in the Journal as also endorsing the the Board, Members of the Insurance Advisory fact that it is serving its purpose. The web copy of Committee, the Reinsurance Advisory Committee, the Journal continues to be the source for an Department of Financial Services (Ministry of increasing number of readers. Finance), Members of the Consultative Committee, all insurers and intermediaries for their IV.9.2 During the year 2014-15, several topical and invaluable guidance and co-operation in its proper relevant issues have been captured by the Journal functioning; and to the compact team of officers such as: “The Insurance Laws (Amendment) Act, and employees of IRDAI for efficient discharge of 2015 (A Game - Changer for the Insurance their duties. The Authority also records its special Industry)”, “Disaster Management- Things to know thanks to the members of the public, the press, all & learn”, “Mis-Selling in Insurance Industry- Things to know & learn”, “Increasing Insurance the professional bodies and international agencies Penetration to Rural and Informal Sector of the connected with the insurance profession through Economy”, “Jan Dhan to Jan Suraksha - Role of their councils including the International Insurance”, etc. Apart from covering the widest Association of Insurance Supervisors (IAIS) for range of thoughts and ideas in a particular domain, their valuable contribution from time to time. 117STATEMENTSANNUAL REPORT 2014-15 STATEMENT 1 INTERNATIONAL COMPARISON OF INSURANCE PENETRATION* (In Per Cent) Countries 2013** 2014** Total Life Non-Life Total Life Non-Life Australia 5.2 3.0 2.1 6.0 3.8 2.2 Brazil 4.0 2.2 1.8 3.9 2.1 1.9 France 9.0 5.7 3.2 9.1 5.9 3.1 Germany 6.7 3.1 3.6 6.5 3.1 3.4 Russia 1.3 0.1 1.2 1.4 0.2 1.2 South Africa 15.4 12.7 2.7 14.0 11.4 2.7 Switzerland 9.6 5.3 4.4 9.2 5.1 4.1 United Kingdom 11.5 8.8 2.8 10.6 8.0 2.6 United States 7.5 3.2 4.3 7.3 3.0 4.3 Asian Countries Hong Kong 13.2 11.7 1.5 14.2 12.7 1.4 India# 3.9 3.1 0.8 3.3 2.6 0.7 Japan# 11.1 8.8 2.3 10.8 8.4 2.4 Malaysia# 4.8 3.2 1.7 4.8 3.1 1.7 Pakistan 0.7 0.5 0.3 0.8 0.5 0.3 PR China 3.0 1.6 1.4 3.2 1.7 1.5 Singapore 5.9 4.4 1.6 6.7 5.0 1.6 South Korea# 11.9 7.5 4.4 11.3 7.2 4.1 Sri Lanka 1.1 0.5 0.7 1.1 0.5 0.7 Taiwan 17.6 14.5 3.1 18.9 15.6 3.3 Thailand 5.5 3.8 1.7 5.8 3.6 2.2 World 6.3 3.5 2.8 6.2 3.4 2.7 Source: Swiss Re, Sigma Volumes 3/2014 and 4/2015. * Insurance penetration is measured as ratio of premium (in US Dollars) to GDP (in US Dollars) ** Data pertains to the calender year 2013 and 2014. # Data relates to financial year 2013-14 & 2014-15. 121ANNUAL REPORT 2014-15 STATEMENT 2 INTERNATIONAL COMPARISON OF INSURANCE DENSITY* (In US Dollar) Countries 2013** 2014** Total Life Non-Life Total Life Non-Life Australia 3528 2056 1472 3736 2382 1354 Brazil 443 246 197 422 222 200 France 3736 2391 1345 3902 2552 1350 Germany 2977 1392 1585 3054 1437 1617 Russia 199 19 180 181 20 161 South Africa 1025 844 181 925 748 176 Switzerland 7701 4211 3490 7934 4391 3542 United Kingdom 4561 3474 1087 4823 3638 1185 United States 3979 1684 2296 4017 1657 2360 Asian Countries Hong Kong 5002 4445 557 5647 5071 575 India# 52 41 11 55 44 11 Japan# 4207 3346 861 3778 2926 852 Malaysia# 518 341 176 524 338 186 Pakistan 9 6 3 11 7 4 PR China 201 110 91 235 127 109 Singapore 3251 2388 863 3759 2840 919 South Korea# 2895 1816 1079 3163 2014 1149 Sri Lanka 36 16 21 40 17 23 Taiwan 3886 3204 682 4072 3371 701 Thailand 310 214 96 323 198 125 World 652 366 285 662 368 294 Source: Swiss Re, Sigma Volumes 3/2014 and 4/2015. * Insurance density is measured as ratio of premium (in US Dollar) to total population. ** Data pertains to the calender year 2012 and 2013. # Data relates to financial year 2013-14 & 2014-15. 122ANNUAL REPORT 2014-15 123 3 TNEMETATS )MUIMERP ELGNIS GNIDULCNI( MUIMERP ECNARUSNI EFIL RAEY TSRIF )erorC `( 51-4102 41-3102 31-2102 21-1102 11-0102 01-9002 90-8002 80-7002 70-6002 60-5002 50-4002 40-3002 30-2002 20-1002 10-0002 RERUSNI 05.702 22.741 09.531 56.702 78.472 73.051 12.13 -- -- -- -- -- -- -- -- eragileR nogeA 98.655 67.395 04.786 68.108 93.547 73.897 65.427 89.3501 53.127 21.704 92.291 69.67 74.31 -- -- avivA 01.2072 30.2952 09.7892 13.7172 28.5643 01.1544 34.1944 84.4766 47.2034 77.6172 54.758 55.971 93.36 41.7 -- znaillA jajaB 02.474 16.573 29.842 95.422 87.743 34.734 39.292 42.311 87.7 -- -- -- -- -- -- AXA itrahB 49.7391 94.7961 15.6381 71.6291 03.0802 10.0692 58.0282 10.5691 27.288 21.876 13.126 68.944 75.921 11.82 23.0 efilnuS alriB 89.674 70.806 27.606 01.786 92.718 26.226 14.692 -- -- -- -- -- -- -- -- CBSH aranaC 10.875 59.271 10.041 61.301 51.47 83.73 73.3 -- -- -- -- -- -- -- -- aciremarP LFHD 24.221 27.08 33.74 88.01 -- -- -- -- -- -- -- -- -- -- -- oikoT ssiewledE 57.446 18.765 02.836 41.836 94.066 34.246 59.886 44.407 66.764 89.382 24.282 01.27 66.71 91.4 -- efiL edixE 14.252 09.422 34.042 30.543 16.844 80.684 79.941 94.2 -- -- -- -- -- -- -- ilareneG erutuF 01.2945 39.8304 70.6344 74.7583 33.9504 15.7523 11.1562 73.5862 58.8461 56.2401 51.684 33.902 13.921 87.23 200.0 dradnatS CFDH 31.2335 95.9573 26.8084 90.1444 41.2687 29.3336 38.1186 57.4308 31.2615 05.2062 43.4851 48.057 11.463 33.311 79.5 laitnedurP ICICI 05.484 96.513 41.543 10.113 59.444 65.004 87.613 09.11 -- -- -- -- -- -- -- laredeF IBDI 76.8351 63.1861 24.6131 13.289 77.407 95.102 -- -- -- -- -- -- -- -- -- tsriFaidnI 81.0451 18.1721 01.8811 72.4611 41.3521 89.3331 30.3431 26.6011 49.416 60.693 99.373 15.521 12.53 85.7 -- ardnihaM katoK 06.2752 06.1622 43.9981 27.1091 93.1602 80.9481 19.2481 38.7951 11.219 63.174 36.332 82.731 13.76 08.83 61.0 efiL xaM 60.928 98.576 80.048 79.6701 22.607 58.1601 07.4411 53.528 44.043 35.841 25.75 14.32 07.7 84.0 -- efilteM BNP 96.9602 99.3391 75.6731 92.9081 49.4303 87.0293 89.3153 50.1572 11.239 65.391 33.19 12.72 23.6 82.0 -- ecnaileR 44.83 90.56 34.16 41.17 38.19 38.421 10.431 21.221 00.34 43.62 47.1 -- -- -- -- arahaS 61.9255 84.5605 88.2815 23.1356 85.9857 47.0407 46.6835 28.2974 48.3652 28.728 58.484 50.702 88.17 96.41 -- efiL IBS 25.894 38.983 56.024 99.093 99.175 05.914 74.413 99.903 71.181 33.01 -- -- -- -- -- efiL marirhS 39.926 58.265 08.447 77.469 96.857 78.915 91.05 -- -- -- -- -- -- -- -- ihci-iaD noinU ratS 50.213 67.334 61.065 55.939 12.2331 10.2231 76.2411 15.469 28.446 35.464 55.792 95.181 77.95 41.12 -- AIA ataT 32.02843 34.61592 85.94703 87.30123 48.58393 10.27383 00.25143 59.51733 56.52491 76.96201 75.4655 17.0442 96.569 15.862 54.6 latoT etavirP )79.71( )10.4-( )22.4-( )94.81-( )46.2( )63.21( )92.1( )65.37( )61.98( )55.48( )99.721( )47.251( )56.952( )07.1604( 27.70587 97.80809 05.11667 52.26818 53.21078 09.12517 80.97135 75.69995 65.32265 78.51582 60.35602 26.74371 67.67951 77.88591 89.0079 CIL )55.31-( )35.81( )14.6-( )29.5-( )66.12( )94.43( )63.11-( )17.6( )71.79( )70.83( )50.91( )85.8( )44.81-( )39.101( 59.72331122.52302180.163701 30.66931181.89362119.398901 80.13378 25.21739 12.94657 45.58783 46.71262 23.88791 54.24961 82.75891 34.7079 latoT yrtsudnI )28.5-( )80.21( )08.5-( )48.9-( )20.51( )48.52( )18.6-( )88.32( )40.59( )49.74( )94.23( )08.61( )86.41-( )65.401( .tnec rep ni raey suoiverp eht revo htworg eht tneserper stekcarb eht ni serugiF )1 :etoN .detrats ton ssenisub stneserper -- )2 srerusni yb desiver serugif sraey suoiverP )3ANNUAL REPORT 2014-15 124 4 TNEMETATS MUIMERP ECNARUSNI EFIL LATOT )erorC `( 51-4102 41-3102 31-2102 21-1102 11-0102 01-9002 90-8002 80-7002 70-6002 60-5002 50-4002 40-3002 30-2002 20-1002 10-0002 RERUSNI 02.955 00.354 05.034 23.754 16.883 56.561 12.13 -- -- -- -- -- -- -- -- eragileR nogeA 52.6971 01.8781 76.0412 78.5142 71.5432 10.8732 78.2991 88.1981 32.7411 72.006 24.352 05.18 74.31 -- -- avivA 03.7106 41.3485 07.2986 08.3847 59.9069 17.91411 25.42601 13.5279 42.5435 85.3313 86.1001 08.022 71.96 41.7 -- znaillA jajaB 23.3501 56.278 25.447 61.477 20.297 37.966 14.063 14.811 87.7 -- -- -- -- -- -- AXA itrahB 22.3325 50.3384 03.6125 63.5885 70.7765 66.5055 08.1754 91.2723 17.6771 86.9521 74.519 45.735 29.341 62.82 23.0 efilnuS alriB 20.7561 24.3281 51.2191 80.1681 68.1351 54.248 14.692 -- -- -- -- -- -- -- -- CBSH aranaC 01.537 68.503 97.632 10.761 40.59 44.83 73.3 -- -- -- -- -- -- -- -- aciremarP LFHD 80.391 09.011 38.45 88.01 -- -- -- -- -- -- -- -- -- -- -- oikoT ssiewledE 84.7202 76.0381 63.2471 89.9761 59.8071 56.2461 82.2441 78.8511 02.707 83.524 68.833 15.88 61.12 91.4 -- efiL edixE 52.406 61.436 92.876 85.977 61.627 15.145 06.251 94.2 -- -- -- -- -- -- -- ilareneG erutuF 09.92841 09.26021 86.22311 04.20201 71.4009 01.5007 96.4655 65.8584 78.5582 19.9651 36.686 67.792 38.841 64.33 200.0 dradnatS CFDH 26.60351 56.82421 42.83531 85.12041 36.08871 57.82561 22.65351 60.16531 99.2197 50.1624 28.3632 82.989 26.714 83.611 79.5 laitnedurP ICICI 26.9601 52.628 86.408 07.637 00.118 21.175 79.813 09.11 -- -- -- -- -- -- -- laredeF IBDI 11.4302 63.3412 80.0961 39.7921 34.897 06.102 -- -- -- -- -- -- -- -- -- tsriFaidnI 50.8303 97.0072 87.7772 34.7392 15.5792 50.8682 91.3432 41.1961 15.179 58.126 61.664 27.051 23.04 85.7 -- ardnihaM katoK 26.1718 45.8727 07.8366 35.0936 36.2185 45.0684 62.7583 06.4172 82.0051 31.887 34.314 52.512 95.69 59.83 61.0 efiL xaM 91.1642 95.0422 25.9242 05.7762 71.8052 10.6352 46.6991 45.9511 17.294 99.502 35.18 37.82 19.7 84.0 -- efilteM BNP 80.1264 04.3824 93.5404 26.7945 51.1756 09.4066 45.2394 44.5223 66.4001 12.422 55.601 60.13 74.6 82.0 -- ecnaileR 68.661 36.402 83.502 59.522 14.342 95.052 74.602 94.341 00.15 66.72 47.1 -- -- -- -- arahaS 11.76821 06.83701 30.05401 47.33131 92.54921 30.40101 01.2127 41.2265 94.8292 23.5701 81.106 76.522 93.27 96.41 -- efiL IBS 66.437 42.495 70.816 61.446 25.128 72.116 71.634 50.853 61.481 33.01 -- -- -- -- -- efiL marirhS 86.4311 57.849 08.8601 59.1721 13.339 73.035 91.05 -- -- -- -- -- -- -- -- ihci-iaD noinU ratS 97.1212 07.3232 34.0672 03.0363 22.5893 87.3943 05.7472 53.6402 81.7631 91.088 40.794 35.352 12.18 41.12 -- AIA ataT 94.33488 63.95377 19.89387 38.28148 42.56188 49.96397 34.79446 24.16515 00.35282 45.38051 15.7277 33.0213 60.9111 55.272 54.6 latoT etavirP 23.41 )33.1-( )78.6-( )25.4-( )80.11( )60.32( )90.52( )05.28( )13.78( )91.59( )56.741( )38.871( )95.013( )13.4214( 56.766932 03.24963285.308802 82.988202 04.374302 13.770681 40.882751 99.987941 48.228721 22.29709 92.72157 34.33536 94.82645 19.12894 20.29843 CIL )51.1( )84.31( )29.2( )92.0-( )53.9( )03.81( )10.5( )91.71( )97.04( )58.02( )52.81( )03.61( )56.9( )97.24( 41.101823 66.10341394.202782 11.270782 46.836192 52.744562 74.587122 14.153102 48.570651 67.57850108.45828 57.35666 55.74755 64.49005 74.89843 latoT yrtsudnI 93.4 )44.9( )50.0( )75.1-( )78.9( )96.91( )51.01( )10.92( )14.74( )87.72( )13.42( )65.91( )82.11( )45.34( .tnec rep ni raey suoiverp eht revo htworg eht tneserper stekcarb eht ni serugiF )1 :etoN .detrats ton ssenisub stneserper -- )2 srerusni yb desiver serugif sraey suoiverP )3ANNUAL REPORT 2014-15 125 5 TNEMETATS 51-4102 ROF SRERUSNI EFIL FO MUIMERP DEKNIL-NON DNA DEKNIL )erorC ` ni muimerP( muimerP dekniL-noN muimerP dekniL muimerP latoT rerusnI latoT laweneR raeY tsriF elgniS ralugeR latoT laweneR raeY tsriF elgniS ralugeR latoT laweneR raeY tsriF elgniS ralugeR 13.563 12.191 01.471 77.0 33.371 98.391 84.061 04.33 54.0 59.23 02.955 96.153 05.702 22.1 82.602 ERAGILER NOGEA 26.2601 79.326 56.834 51.6 15.234 36.337 93.516 42.811 17.4 35.311 52.6971 63.9321 98.655 68.01 40.645 AVIVA 24.1724 71.4452 52.7271 05.755 57.9611 88.5471 30.177 48.479 75.346 72.133 03.7106 02.5133 01.2072 70.1021 20.1051 ZNAILLA JAJAB 80.908 09.243 81.664 08.121 73.443 42.442 22.632 20.8 29.1 01.6 23.3501 21.975 02.474 37.321 84.053 AXA ITRAHB 01.3322 68.279 52.0621 10.92 42.1321 21.0003 24.2232 07.776 75.21 31.566 22.3325 82.5923 49.7391 75.14 73.6981 EFILNUS ALRIB 28.834 69.512 68.222 37.531 31.78 91.8121 80.469 21.452 09.4 22.942 20.7561 40.0811 89.674 36.041 53.633 CBSH ARANAC 59.596 07.621 42.965 02.993 40.071 51.93 83.03 77.8 32.0 45.8 01.537 90.751 10.875 34.993 85.871 ACIREMARP LFHD 04.561 65.56 48.99 71.21 66.78 96.72 01.5 85.22 59.4 46.71 80.391 66.07 24.221 21.71 03.501 OIKOT SSIEWLEDE 82.5181 77.0021 15.416 63.602 51.804 02.212 59.181 52.03 13.9 49.02 84.7202 27.2831 57.446 76.512 90.924 EFIL EDIXE 04.805 11.282 92.622 02.2 90.422 48.59 27.96 21.62 23.4 08.12 52.406 48.153 14.252 25.6 98.542 ILARENEG ERUTUF 49.2056 88.6833 60.6113 15.3302 45.2801 69.6238 29.0595 40.6732 86.035 63.5481 09.92841 08.7339 01.2945 02.4652 09.7292 DRADNATS CFDH 62.2414 82.5713 89.669 17.872 72.886 53.46111 12.9976 51.5634 52.084 09.4883 26.60351 94.4799 31.2335 69.857 71.3754 LAITNEDURP ICICI 25.268 65.005 69.163 26.121 43.042 11.702 75.48 45.221 42.501 03.71 26.9601 21.585 05.484 68.622 46.752 LAREDEF IBDI 41.1241 54.05 96.0731 77.6031 39.36 69.216 89.444 89.761 42.67 47.19 11.4302 34.594 76.8351 10.3831 76.551 TSRIFAIDNI 16.8002 14.578 02.3311 08.043 04.297 54.9201 74.226 89.604 59.731 20.962 50.8303 88.7941 81.0451 67.874 24.1601 ARDNIHAM KATOK 44.7506 50.5404 93.2102 31.906 62.3041 81.4112 69.3551 12.065 96.83 25.125 26.1718 20.9955 06.2752 28.746 87.4291 EFIL XAM 25.9641 12.759 13.215 36.6 86.505 76.199 29.476 57.613 35.9 22.703 91.1642 21.2361 60.928 61.61 09.218 EFILTEM BNP 63.5243 39.2881 34.2451 68.67 75.5641 27.5911 64.866 62.725 47.12 25.505 80.1264 04.1552 96.9602 95.89 90.1791 ECNAILER 78.941 24.411 54.53 12.52 42.01 99.61 99.31 99.2 98.2 01.0 68.661 14.821 44.83 01.82 53.01 ARAHAS 12.0857 71.6893 30.4953 51.3461 88.0591 09.6825 87.1533 21.5391 92.555 48.9731 11.76821 59.7337 61.9255 44.8912 27.0333 EFIL IBS 95.576 94.302 01.274 86.002 24.172 70.95 56.23 24.62 83.42 40.2 66.437 31.632 25.894 60.522 64.372 EFIL MARIRHS 02.795 93.022 18.673 84.34 33.333 84.735 73.482 11.352 07.43 14.812 86.4311 57.405 39.926 91.87 47.155 IHCI-IAD NOINU RATS 85.5341 14.9711 71.652 96.61 84.932 22.686 43.036 88.55 44.1 44.45 97.1212 47.9081 50.213 41.81 19.392 AIA ATAT 06.39684 58.34172 57.94512 41.4718 16.57331 98.93793 14.96462 84.07231 69.5072 25.46501 94.33488 62.31635 32.02843 01.08801 31.04932 LATOT ETAVIRP 06.097732 39.482951 76.50587 51.49355 25.11132 50.7781 10.5781 40.2 63.1 86.0 56.766932 49.95116127.70587 15.59355 02.21132 CIL 02.484682 87.824681 24.55000192.86536 31.78463 49.61614 24.44382 35.27231 23.7072 12.56501 41.101823 02.37741259.723311 16.57266 43.25074 LATOT DNARG muimerP elgniS + muimerP ralugeR = muimerP raeY tsriF )1:etoN muimerP laweneR + muimerP raeY tsriF = muimerP latoT )2ANNUAL REPORT 2014-15 126 5 TNEMETATS...dtnoC 41-3102 ROF SRERUSNI EFIL FO MUIMERP DEKNIL-NON DNA DEKNIL )erorC ` ni muimerP( muimerP dekniL-noN muimerP dekniL muimerP latoT rerusnI latoT laweneR raey tsriF elgniS ralugeR latoT laweneR raey tsriF elgniS ralugeR latoT laweneR raey tsriF elgniS ralugeR 27.632 95.121 31.511 49.0 91.411 92.612 91.481 01.23 01.2 00.03 00.354 87.503 22.741 40.3 81.441 ERAGILER NOGEA 74.7201 48.705 36.915 42.6 93.315 36.058 05.677 41.47 99.5 51.86 01.8781 43.4821 67.395 32.21 35.185 AVIVA 23.6244 19.6922 14.9212 68.176 55.7541 28.6141 02.459 26.264 46.123 89.041 41.3485 11.1523 30.2952 15.399 25.8951 ZNAILLA JAJAB 78.435 15.471 63.063 35.08 38.972 97.733 45.223 52.51 32.0 20.51 56.278 50.794 16.573 67.08 58.492 AXA ITRAHB 05.2861 06.537 19.649 89.54 29.009 55.0513 79.9932 85.057 97.21 97.737 50.3384 65.5313 94.7961 77.85 27.8361 EFILNUS ALRIB 63.085 46.861 27.114 36.403 90.701 60.3421 27.6401 43.691 78.3 74.291 24.3281 53.5121 70.806 05.803 65.992 CBSH ARANAC 07.952 94.59 12.461 72.16 59.201 61.64 24.73 47.8 24.3 23.5 68.503 19.231 59.271 96.46 72.801 ACIREMARP LFHD 32.99 32.72 10.27 24.7 95.46 76.11 69.2 17.8 48.5 78.2 09.011 91.03 27.08 62.31 64.76 OIKOT SSIEWLEDE 07.4651 12.5201 94.935 97.17 07.764 79.562 66.732 23.82 21.2 02.62 76.0381 68.2621 18.765 19.37 09.394 EFIL EDIXE 18.554 95.692 12.951 20.2 91.751 53.871 76.211 86.56 89.64 07.81 61.436 62.904 09.422 00.94 09.571 ILARENEG ERUTUF 66.0715 64.3562 91.7152 48.9531 53.7511 52.2986 15.0735 47.1251 93.323 53.8911 09.26021 79.3208 39.8304 32.3861 07.5532 DRADNATS CFDH 34.7604 78.5362 65.1341 38.643 27.4801 22.1638 91.3306 40.8232 95.721 54.0022 56.82421 60.9668 95.9573 24.474 71.5823 LAITNEDURP ICICI 27.486 15.193 12.392 78.81 43.472 35.141 50.911 84.22 49.12 55.0 52.628 55.015 96.513 18.04 98.472 LAREDEF IBDI 08.8551 98.13 19.6251 75.7841 33.93 65.485 01.034 54.451 41.64 13.801 63.3412 00.264 63.1861 27.3351 46.741 TSRIFAIDNI 12.0551 46.566 85.488 68.292 27.195 85.0511 43.367 42.783 88.981 53.791 97.0072 89.8241 18.1721 47.284 70.987 ARDNIHAM KATOK 03.8715 53.2233 59.5581 45.064 14.5931 42.0012 06.4961 46.504 36.31 20.293 45.8727 59.6105 06.1622 71.474 34.7871 EFIL XAM 15.9821 06.597 19.394 85.92 33.464 70.159 01.967 79.181 78.51 01.661 95.0422 07.4651 98.576 54.54 44.036 EFILTEM BNP 68.9713 35.7151 33.2661 19.54 34.6161 45.3011 88.138 66.172 38.15 38.912 04.3824 14.9432 99.3391 47.79 52.6381 ECNAILER 60.471 31.411 39.95 68.43 70.52 85.03 14.52 61.5 70.5 90.0 36.402 45.931 90.56 39.93 61.52 ARAHAS 03.6446 47.5662 65.0873 48.5871 27.4991 13.2924 93.7003 29.4821 41.282 97.2001 06.83701 31.3765 84.5605 79.7602 15.7992 EFIL IBS 58.664 68.351 00.313 28.621 81.681 83.721 55.05 48.67 13.47 35.2 42.495 04.402 38.983 31.102 07.881 EFIL MARIRHS 62.974 22.221 30.753 53.65 96.003 94.964 76.362 28.502 28.36 00.241 57.849 09.583 58.265 71.021 86.244 IHCI-IAD NOINU RATS 98.9241 94.1801 04.843 79.67 34.172 18.398 64.808 53.58 18.22 45.26 07.3232 59.9881 57.334 87.99 79.333 AIA ATAT 35.34524 98.00612 46.24902 35.5737 11.76531 38.51843 40.24262 97.3758 93.3461 04.0396 63.95377 39.24874 34.61592 29.8109 15.79402 LATOT ETAVIRP 50.412432 21.944341 49.46709 55.96885 93.59813 52.8272 04.4862 58.34 57.43 01.9 03.249632 15.331641 97.80809 03.40985 94.40913 CIL 85.757672 10.050561 85.707111 70.54266 05.26454 80.44573 44.62982 46.7168 41.8761 05.9396 66.103413 54.679391 22.52302122.32976 00.20425 LATOT DNARG muimerP elgniS + muimerP ralugeR = muimerP raeY tsriF )1 : etoN muimerP laweneR + muimerP raeY tsriF = muimerP latoT )2 srerusni yb desiver serugif sraey suoiverP )3ANNUAL REPORT 2014-15 127 6 TNEMETATS 51-4102 RAEY EHT ROF SMIALC HTAED LAUDIVIDNI )erorc ` ni tnuomA tifeneB( gnidnep smialC - gnidnep smialc fo pu kaerB nettirw smialC / detaiduper smialC / detamitni smialC ta gnidnep smialC eht fo dne ta diap smialC smialC latoT )seiciloP( esiw noitarud kcab detcejer dekoob doirep eht fo trats doirep rerusnI efiL latoT ry 1 > ry 1< - 6 6 < - 3 shtm 3< tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN shtm tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomAseiciloP tnuomAseiciloP 1 0 0 0 1 0 1 00.0 0 41.5 64 37.03 314 67.53 064 67.53 064 00.0 0 eragileR nogeA %001 %00.001%13.0- %22.0 - - %83.41 %00.01 %39.58 %87.98 %001 %001 9 0 0 0 9 2 9 00.0 00.0 67.93 672 84.701 8931 03.941 3861 05.841 0861 08.0 3 avivA %001 %00.001%83.1 %35.0 - - %36.62 %04.61 %99.17 %70.38 %001 %001 426 0 0 8 616 63 426 00.0 00.0 33.54 9501 58.743 87981 45.924 16602 12.604 98002 33.32 275 znaillA jajaB %001 %82.1 %27.89 %74.8 %20.3 - - %55.01 %31.5 %89.08 %58.19 %001 %001 23 0 0 1 13 3 23 00.0 00.0 31.11 081 61.53 898 75.94 0111 85.74 7801 99.1 32 axA itrahB %001 %31.3 %88.69 %36.6 %88.2 - - %54.22 %22.61 %29.07 %09.08 %001 %001 241 63 2 6 89 81 241 00.0 00.0 74.32 552 80.872 6508 82.913 3548 42.992 7028 40.02 642 efilnuS alriB %001 %53.52 %14.1 %32.4 %10.96 %55.5 %86.1 - - %53.7 %20.3 %01.78 %03.59 %001 %001 81 2 1 4 11 2 81 00.0 00.0 39.4 24 18.82 615 11.63 675 83.23 065 37.3 61 CBO CBSH aranaC %001 %11.11 %65.5 %22.22 %11.16 %95.6 %31.3 - - %56.31 %92.7 %77.97 %85.98 %001 %001 55 6 9 01 03 2 55 56.0 00.51 16.21 833 49.41 545 26.03 359 72.51 094 53.51 364 aciremarP LFHD %001 %19.01 %63.61 %81.81 %55.45 %88.7 %77.5 %41.2 %75.1 %91.14 %74.53 %08.84 %91.75 %001 %001 6 0 0 1 5 1 6 00.0 0 02.5 54 42.7 86 74.31 911 51.21 501 23.1 41 oikoT ssiewledE %001 %76.61 %33.38 %66.7 %40.5 - - %85.83 %28.73 %67.35 %41.75 %001 %001 84 0 0 71 13 4 84 57.0 8 25.42 124 41.06 5592 44.98 2343 97.97 6223 56.9 602 efiL edixE %001 %24.53 %85.46 %25.4 %04.1 %38.0 %32.0 %14.72 %72.21 %42.76 %01.68 %001 %001 83 0 3 2 33 4 83 00.0 00.0 76.01 413 49.03 8081 51.54 0612 65.63 9291 95.8 132 ilareneG erutuF %001 %98.7 %62.5 %48.68 %48.7 %67.1 - - %36.32 %45.41 %35.86 %07.38 %001 %001 572 0 0 75 812 45 572 00.0 00.0 69.48 388 25.362 13011 30.204 98121 55.783 59021 84.41 49 dradnatS CFDH %001 %37.02 %72.97 %23.31 %62.2 - - %31.12 %42.7 %55.56 %05.09 %001 %001 69 1 1 92 56 41 69 00.0 00.0 05.67 766 68.253 64511 05.344 90321 36.314 68121 78.92 321 laitnedurP ICICI %001 %40.1 %40.1 %12.03 %17.76 %91.3 %87.0 - - %52.71 %24.5 %65.97 %08.39 %001 %001 44 1 0 0 34 3 44 00.0 0 44.9 191 94.13 637 24.44 179 89.14 239 44.2 93 laredeF IBDI %001 %72.2 %37.79 %48.7 %35.4 - - %62.12 %76.91 %09.07 %08.57 %001 %001 28 0 4 2 67 6 28 00.0 0 87.31 873 28.92 5911 53.94 5561 27.64 6061 36.2 94 tsriF aidnI %001 %88.4 %44.2 %86.29 %56.11 %59.4 - - %29.72 %48.22 %34.06 %12.27 %001 %001 .smialc latot evitcepser eht fo egatnecrep swohs wor dnoces saerehw serugif etulosba eht swohs rerusni hcae ssorca wor tsriF )1 :etoN hcihw smialc eht elihw detcejer sa deifissalc eb llahs snoitidnoc ycilop eht morf gnitluser mialc a fo ytilibissimdani ot eud deredisnoc eb tonnac mialc ycilop erehw sesac eht llA .2 .detaiduper sa deifissalc eb llahs 8391 ,tcA ecnarusnI eht fo 54 noitceS fo weivrup eht rednu gnimoc .cte noitatneserpersim ,tnemetatssim ot eud deredisnoc eb tonnac6 TNEMETATS...dtnoC 51-4102 RAEY EHT ROF SMIALC HTAED LAUDIVIDNI )erorc ` ni tnuomA tifeneB( gnidnep smialC - gnidnep smialc fo pu kaerB nettirw smialC / detaiduper smialC / detamitni smialC ta gnidnep smialC eht fo dne ta diap smialC smialC latoT )seiciloP( esiw noitarud kcab detcejer dekoob doirep eht fo trats doirep rerusnI efiL latoT ry 1 > ry 1< - 6 6 < - 3 shtm 3< tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN shtm tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomA seiciloP tnuomAseiciloP tnuomAseiciloP 78 43 61 9 82 8 78 00.0 00.0 94.7 261 71.27 7342 58.78 6862 46.38 7362 12.4 94 ardnihaM katoK %001 %80.93 %93.81 %43.01 %81.23 %33.9 %42.3 - - %25.8 %30.6 %51.28 %37.09 %001 %001 lautuM dlO 6 0 0 1 5 2 6 00.0 00.0 17.41 753 64.542 6878 72.262 9419 39.162 5419 43.0 4 efiL xaM %001 %76.61 %33.38 %08.0 %70.0 - - %16.5 %09.3 %95.39 %30.69 %001 %001 73 0 0 8 92 7 73 62.0 2 30.01 731 00.201 0922 30.911 6642 95.801 8542 44.01 8 efiL teM BNP %001 %26.12 %83.87 %66.5 %05.1 %22.0 %80.0 %24.8 %65.5 %07.58 %68.29 %001 %001 0501 791 77 34 337 33 0501 00.0 0 22.94 1881 72.922 11251 73.113 24181 20.872 73661 53.33 5051 efiL ecnaileR %001 %67.81 %33.7 %01.4 %18.96 %65.01 %97.5 - - %18.51 %73.01%36.37 %48.38 %001 %001 82 0 0 01 81 0 82 00.0 0 54.0 05 83.6 007 01.7 877 98.6 267 12.0 61 arahaS %001 %17.53 %92.46 %78.3 %06.3 - - %92.6 %34.6 %48.98 %79.98 %001 %001 074 78 42 93 023 13 074 00.0 0 79.72 3011 04.503 30331 77.463 67841 80.933 84341 96.52 825 efiL IBS %001 %15.81 %11.5 %03.8 %90.86 %16.8 %61.3 - - %76.7 %14.7 %27.38 %34.98 %001 %001 022 21 5 41 981 11 022 00.0 00.0 15.81 354 94.13 7821 94.16 0691 08.35 0771 96.7 091 marirhS %001 %54.5 %72.2 %63.6 %19.58 %96.81 %22.11 - - %01.03 %11.32%12.15 %66.56 %001 %001 4 0 0 3 1 0 4 00.0 00.0 18.2 17 89.33 1911 21.73 6621 58.63 7521 72.0 9 noinU ratS %001 %00.57 %00.52 %98.0 %23.0 - - %85.7 %16.5 %45.19 %80.49 %001 %001 73 31 4 5 51 2 73 00.0 00.0 48.7 771 72.88 9563 85.89 3783 30.29 7273 55.6 641 AIA ataT %001 %41.53 %18.01 %15.31 %45.04 %15.2 %69.0 - - %59.7 %75.4 %45.98 %74.49 %001 %001 9043 983 641 962 5062 25.542 9043 66.1 52 54.605 6849 94.3372 700901 21.7843 729121 41.4623 393711 89.222 4354 latoT etavirP %001 %14.11 %82.4 %98.7 %24.67 %40.7 %08.2 %50.0 %20.0 %25.41 %87.7 %93.87 %04.98 %001 %001 2563 9901 1511 327 976 802 2563 57.22 7131 39.491 9868 81.5509 342247 94.0849 109557 08.2529 939157 96.722 2693 CIL %001 %90.03 %25.13 %08.91 %95.81 %91.2 %84.0 %42.0 %71.0 %60.2 %51.1 %15.59 %91.89 %001 %001 1607 8841 7921 299 4823 51.354 1607 14.42 2431 96.107 13281 76.88711052158 16.76921828778 49.61521233968 76.054 6948 latoT yrtsudnI %001 %70.12 %73.81 %50.41 %15.64 %94.3 %08.0 %91.0 %51.0 %14.5 %80.2 %19.09 %79.69 %001 %001 ANNUAL REPORT 2014-15 128 .smialc latot evitcepser eht fo egatnecrep swohs wor dnoces saerehw serugif etulosba eht swohs rerusni hcae ssorca wor tsriF )1 :etoN hcihw smialc eht elihw detcejer sa deifissalc eb llahs snoitidnoc ycilop eht morf gnitluser mialc a fo ytilibissimdani ot eud deredisnoc eb tonnac mialc ycilop erehw sesac eht llA .2 .detaiduper sa deifissalc eb llahs 8391 ,tcA ecnarusnI eht fo 54 noitceS fo weivrup eht rednu gnimoc .cte noitatneserpersim ,tnemetatssim ot eud deredisnoc eb tonnacANNUAL REPORT 2014-15 129 7 TNEMETATS 51-4102 RAEY EHT ROF SMIALC HTAED PUORG )erorc ` ni tnuomA tifeneB( gnidnep smialC smialC smialC gnidnep smialC - gnidnep smialc fo pu kaerB nettirw smialC eht fo dne ta / detaiduper diap smialC smialC latoT / detamitni eht fo trats ta )seviL( esiw noitarud kcab doirep detcejer dekoob doirep rerusnI efiL latoT ry 1 > ry 1< - 6 6 < - 3 shtm 3 < tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN shtm tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL 0 0 0 0 0 00.0 0 00.0 0 00.0 0 72.0 3 72.0 3 72.0 3 00.0 0 eragileR nogeA %0 - - - - %00.001%00.001 %001 %001 0 0 0 0 0 00.0 0 00.0 0 94.0 49 37.31 3253 22.41 7163 22.41 7163 00.0 0 avivA %0 %00.0 - - %64.3 %06.2 %45.69 %04.79 %001 %001 323 0 0 41 903 61.9 323 00.0 0 50.32 2532 75.983 491701 77.124 968901 86.704 864901 90.41 104 znaillA jajaB %001 %33.4 %76.59 %71.2 %92.0 - - %64.5 %41.2 %63.29 %75.79 %001 %001 0 0 0 0 0 00.0 0 00.0 0 83.3 42 80.01 211 54.31 631 54.31 631 00.0 0 axA itrahB %0 %00.0 - - %90.52 %56.71 %19.47 %53.28 %001 %001 0 0 0 0 0 00.0 0 00.0 0 00.0 0 37.98 8671 37.98 8671 37.98 8671 0 0 efilnuS alriB %0 - - - - %00.001%00.001 %001 %001 1 0 0 0 1 00.0 1 00.0 0 92.0 31 91.3 414 84.3 824 84.3 824 00.0 0 CBO CBSH aranaC %001 %00.001%90.0 %32.0 - - %52.8 %40.3 %76.19 %37.69 %001 %001 234 0 0 71 514 62.2 234 00.0 0 35.0 24 36.8 00.5133 24.11 9873 53.11 6573 70.0 33 aciremarP LFHD %001 %49.3 %60.69 %08.91 %04.11 - - %56.4 %11.1 %55.57 %94.78 %001 %001 8 0 0 2 6 81.0 8 00.0 0 50.0 2 88.5 236 11.6 246 80.6 636 30.0 6 oikoT ssiewledE %001 %00.52 %00.57 %69.2 %52.1 - - %78.0 %13.0 %71.69 %44.89 %001 %001 0 0 0 0 0 00.0 0 00.0 0 10.0 1 79.2 803 89.2 903 57.2 603 42.0 3 efiL edixE %0 %00.0 - - %43.0 %23.0 %66.99 %86.99 %001 %001 53421 12421 3 3 8 11.81 53421 00.0 0 01.0 2 83.02 451 95.83 19521 87.71 521 18.02 66421 ilareneG erutuF %001 %98.99 %20.0 %20.0 %60.0 %39.64 %67.89 - - %62.0 %20.0 %18.25 %22.1 %001 %001 0 0 0 0 0 10.0 0 00.0 0 64.5 56 68.25 7594 33.85 2205 33.85 2205 00.0 0 dradnatS CFDH %0 %20.0 - - %63.9 %92.1 %26.09 %17.89 %001 %001 8 4 1 1 2 69.1 8 00.0 0 55.2 81 55.57 8032 50.08 4332 37.47 2132 23.5 22 laitnedurP ICICI %001 %00.05 %05.21 %05.21 %00.52 %44.2 %43.0 - - %81.3 %77.0 %83.49 %98.89 %001 %001 1 0 0 0 1 73.0 1 00.0 0 66.0 7 29.01 5301 69.11 3401 16.11 1401 53.0 2 laredeF IBDI %001 %00.001%21.3 %01.0 - - %25.5 %76.0 %63.19 %32.99 %001 %001 82 4 0 0 42 50.1 82 00.0 0 79.11 804 07.24 0572 27.55 6813 95.35 0313 31.2 65 tsriF aidnI 001 %92.41 %17.58 %98.1 %88.0 - - %94.12 %18.21 %36.67 %23.68 %001 %001 .smialc latot evitcepser eht fo egatnecrep swohs wor dnoces saerehw serugif etulosba eht swohs rerusni hcae ssorca wor tsriF )1 :etoN7 TNEMETATS...dtnoC 51-4102 RAEY EHT ROF SMIALC HTAED PUORG )erorc ` ni tnuomA tifeneB( gnidnep smialC smialC smialC gnidnep smialC - gnidnep smialc fo pu kaerB nettirw smialC eht fo dne ta / detaiduper diap smialC smialC latoT / detamitni eht fo trats ta )seviL( esiw noitarud kcab doirep detcejer dekoob doirep rerusnI efiL latoT ry 1 > ry 1< - 6 6 < - 3 shtm 3 < tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN tifeneB fo oN shtm tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL tnuomA seviL 44 61 21 7 9 01.3 44 00.0 0 38.4 48 67.091 07291 96.891 89391 25.691 47391 71.2 42 ardnihaM katoK %001 %63.63 %72.72 %19.51 %54.02 %65.1 %32.0 - - %34.2 %34.0 %10.69 %43.99 %001 %001 lautuM dlO 1 0 0 0 1 35.0 1 00.0 0 86.3 24 51.34 5406 63.74 8806 63.74 8806 00.0 0 efiL xaM %001 %00.001%11.1 %20.0 - - %87.7 %96.0 %11.19 %92.99 %001 %001 4 0 0 0 4 22.0 4 00.0 0 91.0 8 75.19 3951 89.19 5061 89.19 4061 10.0 1 efiL teM BNP %001 %00.001%42.0 %52.0 - - %12.0 %05.0 %55.99 %52.99 %001 %001 3 1 0 0 2 60.0 3 00.0 0 20.0 1 71.33 1222 52.33 5222 11.33 9122 31.0 6 efiL ecnaileR %001 %33.33 %76.66 %81.0 %31.0 - - %60.0 %40.0 %67.99 %28.99 %001 %001 0 0 0 0 0 00.0 0 00.0 0 00.0 0 10.0 1 10.0 1 10.0 1 00.0 0 arahaS %0 - - - - %00.001%00.001%001 %001 971 92 31 61 121 64.8 971 00.0 0 54.41 552 24.282 96101 33.503 30601 08.892 57401 35.6 821 efiL IBS %001 %02.61 %62.7 %49.8 %06.76 %77.2 %96.1 - - %37.4 %04.2 %05.29 %19.59 %001 %001 0 0 0 0 0 00.0 0 00.0 0 00.0 0 12.76 3536 12.76 3536 12.76 3536 00.0 0 marirhS %0 - - - - %00.001%00.001%001 %001 0 0 0 0 0 91.0 0 00.0 00.0 84.0 6 75.12 109 42.22 709 42.22 709 00.0 0 noinU ratS %0 %68.0 - - %51.2 %66.0 %99.69 %43.99 %001 %001 63 0 6 3 72 29.1 63 00.0 0 80.3 84 62.72 889 62.23 2701 22.92 099 40.3 28 AIA ataT %001 %76.61 %33.8 %00.57 %59.5 %63.3 - - %65.9 %84.4 %94.48 %61.29 %001 %001 30531 57421 53 36 039 95.74 30531 00.0 0 72.57 2743 55.3841 410671 14.6061 989291 05.1551 957971 29.45 03231 latoT etavirP %001 %93.29 %62.0 %74.0 %98.6 %69.2 %00.7 - - %96.4 %08.1 %53.29 %02.19 %001 %001 588 16 01 812 695 13.7 588 00.0 0 04.0 89 72.7302 118272 89.4402 497372 11.7302 668272 78.7 829 CIL %001 %98.6 %31.1 %36.42 %43.76 %63.0 %23.0 - - %20.0 %40.0 %26.99 %46.99 %001 %001 88341 63521 54 182 6251 09.45 88341 00.0 0 76.57 0753 28.0253 528844 93.1563 387664 16.8853 526254 97.26 85141 latoT yrtsudnI %001 %31.78 %13.0 %59.1 %16.01 %05.1 %80.3 - - %70.2 %67.0 %24.69 %51.69 %001 %001 .smialc latot evitcepser eht fo egatnecrep swohs wor dnoces saerehw serugif etulosba eht swohs rerusni hcae ssorca wor tsriF )1 :etoN ANNUAL REPORT 2014-15 130ANNUAL REPORT 2014-15 131 8 TNEMETATS SRERUSNI EFIL FO TNEMEGANAM REDNU STESSA )erorC `( DNUF EFIL & tnemnrevoG etatS devorppA erutcurtsarfnI tnemnrevoG lartneC )dnuF efiL( latoT stnemtsevnI rehtO devorppA rehtO stnemtsevnI stnemtsevnI seitiruceS rerusnI seitiruceS 4102.3.13 5102.30.13 4102.3.13 5102.30.13 4102.3.13 5102.30.13 4102.3.13 5102.30.134102.3.13 5102.30.13 4102.3.13 5102.30.13 65.753 01.335 12.22 49.53 67.94 78.46 21.46 79.901 96.4 86.4 97.612 46.713 ERAGILER NOGEA 26.5022 58.8382 10.0 10.0 36.683 79.642 38.614 01.695 58.181 20.931 13.0221 57.6581 AVIVA 28.96831 58.64571 08.842 11.631 47.8852 83.1092 51.7672 98.0023 49.2451 10.7241 81.2276 64.1889 ZNAILLA JAJAB 88.555 18.798 67.12 95.23 88.721 88.052 90.68 46.941 46.94 54.681 15.072 52.872 AXA ITRAHB 58.2003 71.8083 04.802 63.301 83.674 11.255 85.537 41.9701 14.57 69.77 80.7051 06.5991 EFILNUS ALRIB 23.5111 27.2041 00.0 74.27 07.521 63.07 19.403 43.593 91.13 53.13 25.356 02.338 CBSH ARANAC 28.924 80.3201 60.4 33.3 84.47 72.021 63.501 18.203 03.02 72.02 36.522 93.675 ACIREMARP LFHD 20.816 03.866 02.81 33.02 79.793 29.404 40.801 91.47 00.0 00.0 08.39 68.861 OIKOT SSIEWLEDE 40.0204 64.2874 53.862 88.29 99.346 61.667 64.788 65.0811 36.571 78.561 06.4402 99.6752 EFIL EDIXE 54.8321 06.1641 23.0 33.2 19.612 90.723 83.263 29.873 76.522 74.591 71.334 97.755 ILARENEG ERUTUF 75.13321 70.31361 04.042 67.972 89.1313 94.9514 04.9952 28.3153 47.565 47.292 40.4975 62.7608 DRADNATS CFDH 68.47451 19.63291 97.167 25.681 10.1754 59.0954 38.0362 04.0053 61.909 01.725 70.2066 49.13401 LAITNEDURP ICICI 22.4161 67.2622 41.0 00.0 87.942 15.664 26.165 59.575 45.511 00.151 41.786 13.9601 LAREDEF IBDI 48.745 74.166 52.1 52.1 09.741 21.341 90.68 44.231 47.04 14.16 68.172 52.323 TSRIFAIDNI 89.0773 73.6105 13.0 21.171 71.157 33.068 63.908 74.568 67.075 04.291 83.9361 50.7292 ARDNIHAM KATOK 00.73131 79.98961 00.04 86.29 00.5191 26.4452 00.4942 41.2382 00.3811 86.9821 00.5057 68.03201 EFIL XAM 35.0504 19.9025 00.0 00.0 07.732 93.643 24.4001 91.5821 53.461 90.451 60.4462 52.4243 EFILTEM BNP 70.2417 68.8995 66.58 96.441 50.9791 43.8301 45.2151 90.2151 19.7111 43.728 09.6442 14.6742 ECNAILER 68.838 10.158 94.22 12.13 82.131 69.69 82.412 41.442 74.761 17.881 43.303 99.982 ARAHAS 42.26021 42.01071 26.511 39.281 74.7442 62.9443 42.1732 95.5633 89.389 52.988 39.3416 22.3219 EFIL IBS 47.747 61.4901 51.6 02.701 66.141 07.142 43.702 02.302 23.68 04.811 72.603 66.324 EFIL MARIRHS 88.958 02.8811 00.1 46.1 99.721 27.071 73.471 02.442 37.601 53.68 97.944 92.586 IHCI-IAD NOINU RATS 71.4327 63.4868 96.21 55.6 66.669 38.077 97.6121 44.2071 11.033 49.523 19.7074 06.8785 AIA ATAT 33.522701 62.084531 16.9702 09.4071 90.78812 42.48542 02.02712 16.44472 31.9468 94.2537 92.98825 20.49347 LATOT ETAVIRP 56.999081188.8289531 22.83072 42.88442 22.009703 40.999713 07.503331 83.660741 23.028642 93.673123 91.539564 38.898845 CIL 79.422882141.9035941 38.71192 41.39162 13.787923 82.385243 09.520551 99.015471 54.964552 88.827823 74.428815 58.292326 LATOT YRTSUDNIANNUAL REPORT 2014-15 132 8 TNEMETATS …dtnoC SRERUSNI EFIL FO TNEMEGANAM REDNU STESSA )erorC `( DNUF PUORG & YTIUNNA LARENEG & NOISNEP lareneG & noisneP( latoT rehtO & tvoG etatS )dnuF puorG & ytiunnA stnemtsevnI devorppA seitiruceS devorppA seitiruceS - tvoG lartneC rerusnI 4102.3.13 5102.30.13 4102.3.13 5102.30.13 4102.3.13 5102.30.13 4102.3.13 5102.30.13 54.3 23.4 52.0 32.0 53.0 53.0 48.2 47.3 ERAGILER NOGEA 21.326 10.666 69.392 56.213 12.96 20.1 69.952 33.253 AVIVA 14.5543 87.5693 23.0991 14.6422 42.762 22.633 58.7911 51.3831 ZNAILLA JAJAB 81.08 75.551 64.14 28.78 20.3 77.81 07.53 89.84 AXA ITRAHB 78.2211 64.1481 97.936 16.7201 71.45 52.58 29.824 06.827 EFILNUS ALRIB 37.009 66.067 35.215 75.334 43.37 04.38 68.413 96.342 CBSH ARANAC 14.06 82.862 26.02 84.431 20.5 20.5 87.43 87.821 ACIREMARP FLD 63.5 12.22 14.0 83.7 00.0 00.0 59.4 38.41 OIKOT SSIEWLEDE 53.6811 25.8531 74.266 95.186 91.301 56.301 96.024 82.375 EFIL EDIXE 94.291 97.313 43.301 57.951 02.93 38.25 59.94 12.101 ILARENEG ERUTUF 23.8004 10.9675 39.0432 69.4733 39.616 51.995 64.0501 09.4971 DRADNATS CFDH 71.4163 35.1683 94.0771 12.5641 44.863 75.752 52.5741 57.8312 LAITNEDURP ICICI 25.511 39.042 01.24 01.131 11.83 85.35 23.53 52.65 LAREDEF IBDI 70.9772 79.0473 78.6241 33.1571 87.824 71.445 24.329 74.5441 TSRIFAIDNI 77.391 44.453 35.98 69.041 33.51 03.24 19.88 81.171 ARDNIHAM KATOK 00.661 70.175 00.83 22.091 00.11 99.65 00.711 68.323 EFIL XAM 83.643 86.222 31.971 68.58 14.06 99.5 48.601 38.031 EFILTEM BNP 31.858 51.1401 58.174 47.965 54.521 28.561 5428.062 2006.503 ECNAILER 91.3 11.3 05.0 34.0 00.0 00.0 96.2 86.2 ARAHAS 96.53571 34.35981 35.4398 91.7298 32.9322 41.7332 39.1636 01.9867 EFIL IBS 29.561 91.291 51.39 63.011 41.11 11.31 36.16 27.86 EFIL MARIRHS 78.827 79.377 65.043 46.573 29.021 99.511 83.762 43.282 IHCI-IAD NOINU RATS 49.516 39.875 21.043 50.972 7741.66 0069.63 86.902 29.262 AIA ATAT 43.16783 00.06654 09.23302 55.39422 36.6174 72.5194 28.11731 91.15281 LATOT ETAVIRP 01.818892 75.218343 89.839251 74.194561 78.46737 60.01969 42.41127 40.11418 CIL 44.975733 75.274983 88.172371 20.589781 05.18487 33.528101 60.62858 32.26699 LATOT YRTSUDNI8 TNEMETATS …dtnoC SRERUSNI EFIL FO TNEMEGANAM REDNU STESSA )erorC `( DNUF DEKNIL TINU )SDNUF LLA( LATOT )sdnuF PILU( latoT stnemtsevnI rehtO stnemtsevnI devorppA rerusnI 4102.3.13 5102.3.13 4102.3.13 5102.3.13 4102.3.13 5102.3.13 4102.3.13 5102.3.13 64.5331 37.2171 54.479 13.5711 96.82 82.64 67.549 20.9211 ERAGILER NOGEA 93.3618 17.2219 46.4335 58.7165 19.411 49.08 37.9125 29.6355 AVIVA 38.21683 76.75134 06.78212 40.54612 13.4231 48.5121 92.36991 02.92402 ZNAILLA JAJAB 88.7142 32.2692 28.1871 58.8091 09.15 02.761 29.9271 56.1471 AXA ITRAHB 95.67642 30.54003 78.05502 04.59342 00.0221 77.6401 88.03391 36.84332 EFILNUS ALRIB 15.0638 93.3879 74.4436 10.0267 74.931 33.083 00.5026 86.9327 CBSH ARANAC 26.527 08.2451 93.532 44.152 64.5 19.1 39.922 45.942 ACIREMARP FLD 46.056 31.057 62.72 16.95 12.1 29.4 50.62 96.45 OIKOT SSIEWLEDE 34.7077 67.9068 50.1052 87.8642 67.941 17.851 92.1532 70.0132 EFIL EDIXE 08.2632 49.3562 68.139 55.878 14.52 48.21 54.609 17.568 ILARENEG ERUTUF 93.35205 04.20076 15.31933 23.02944 74.107 27.7851 30.21233 06.23334 DRADNATS CFDH 64.99397 89.57879 34.01306 45.77747 73.9442 95.9331 60.16875 49.73437 LAITNEDURP ICICI 23.8833 42.0624 85.8561 55.6571 80.6 24.31 05.2561 31.3471 LAREDEF IBDI 03.0616 39.7997 93.3382 94.5953 31.86 63.501 62.5672 31.0943 TSRIFAIDNI 77.30021 29.05051 20.9308 11.0869 51.021 44.136 78.8197 76.8409 ARDNIHAM KATOK 00.33642 16.06903 00.03311 75.99331 00.744 62.756 00.38801 13.24721 EFIL XAM 12.92901 02.63721 03.2356 26.3037 76.161 45.03 36.0736 70.3727 EFILTEM BNP 52.48281 67.72851 50.48201 57.7878 54.043 77.394 06.3499 89.3928 ECNAILER 28.6711 56.5211 77.433 35.172 16.5 45.3 61.923 99.762 ARAHAS 02.59185 57.37707 82.79582 70.01843 94.122 99.518 97.57382 80.49933 EFIL IBS 11.6391 30.0532 54.2201 86.3601 32.66 95.63 22.659 90.7201 EFIL MARIRHS 52.1934 97.4835 94.2082 26.2243 83.44 94.33 21.8572 31.9833 IHCI-IAD NOINU RATS 10.50471 89.22591 09.4559 96.95201 64.971 24.832 34.5739 72.12001 AIA ATAT 42.961383 36.902164 75.281732 73.960082 16.2787 88.2019 69.903922 94.669072 LATOT ETAVIRP 43.6924751 55.2136871 95.87449 01.17628 75.2331 51.6621 30.64139 59.40418 CIL 75.5647591 81.2257422 61.166133 74.047263 81.5029 30.96301 89.554223 44.173253 LATOT YRTSUDNI ANNUAL REPORT 2014-15 133ANNUAL REPORT 2014-15 STATEMENT 9 EQUITY SHARE CAPITAL OF LIFE INSURERS (` Crore) As on Infusion As on Foreign Indian Insurer 31st March, During the 31st March, FDI (%) Promoter Promoter 2014 year 2015 AEGON RELIGARE 1307.00 3.50 1310.50 340.73 969.77 26.00% AVIVA 2004.90 0.00 2004.90 521.27 1483.63 26.00% BAJAJ ALLIANZ 150.71 -0.01 150.70 39.18 111.52 26.00% BHARTI AXA 1978.20 137.50 2115.70 470.15 1645.55 22.22% BIRLA SUNLIFE 1901.21 0.00 1901.21 494.31 1406.90 26.00% CANARA HSBC 950.00 0.00 950.00 247.00 703.00 26.00% DHFL PRAMERICA 340.38 33.69 374.06 97.26 276.80 26.00% EDELWEISS TOKIO 180.29 0.00 180.29 46.87 133.41 26.00% EXIDE LIFE 1600.00 150.00 1750.00 0.00 1750.00 0.00% FUTURE GENERALI 1452.00 0.00 1452.00 370.26 1081.74 25.50% HDFC STANDARD 1994.88 0.00 1994.88 518.67 1476.21 26.00% ICICI PRUDENTIAL 1429.26 2.46 1431.72 370.78 1060.94 25.90% IDBI FEDERAL 800.00 0.00 800.00 208.00 592.00 26.00% INDIAFIRST 475.00 0.00 475.00 123.50 351.50 26.00% KOTAK MAHINDRA 510.29 0.00 510.29 132.68 377.61 26.00% MAX LIFE 1944.69 -25.88 1918.81 498.89 1419.92 26.00% PNB METLIFE 2012.88 0.00 2012.88 523.35 1489.53 26.00% RELIANCE 1196.32 0.00 1196.32 311.04 885.28 26.00% SAHARA 232.00 0.00 232.00 0.00 232.00 0.00% SBI LIFE 1000.00 0.00 1000.00 260.00 740.00 26.00% SHRIRAM LIFE 175.00 4.37 179.37 0.00 179.37 0.00% STAR UNION DAI-ICHI 250.00 0.00 250.00 65.00 185.00 26.00% TATA AIA 1953.50 0.00 1953.50 507.91 1445.59 26.00% Total (Private Sector) 25838.51 305.63 26144.14 6146.87 19997.27 23.51% LIC 100.00 0.00 100.00 0.00 100.00 0.00% Total (Life) 25938.51 305.63 26244.14 6146.87 20097.27 23.42% 134ANNUAL REPORT 2014-15 STATEMENT 10 QUARTERLY SOLVENCY RATIO OF LIFE INSURERS IN INDIA DURING THE FINANCIAL YEAR 2014-15 S.No Name of the Life Insurer 30/06/14 30/09/14 31/12/14 31/03/15 1 AEGON RELIGARE LIFE INS. CO. LTD. 1.95 1.94 1.61 2.03 2 AVIVA LIFE INS. CO. PVT. LTD. 4.09 4.04 3.74 3.80 3 BAJAJ ALLIANZ LIFE INS. CO. LTD 7.86 8.03 7.78 7.61 4 BHARTI AXA LIFE INS. CO. LTD 2.03 1.79 1.63 2.07 5 BIRLA SUN LIFE INS. CO. LTD. 2.08 2.13 2.23 2.05 6 CANARA HSBC OBC LIFE INS. CO. LTD. 3.66 3.97 3.15 3.16 7 DHFL PRAMERICA LIFE INS. CO. LTD. 12.50 12.42 12.56 12.69 8 EDELWEISS TOKIO LIFE INS. CO. LTD. 2.08 2.16 1.96 2.54 9 FUTURE GENERALI INDIA LIFE INS. CO. LTD 3.12 2.98 2.86 2.91 10 HDFC STANDARD LIFE INS. CO. LTD. 1.92 2.04 1.87 1.96 11 ICICI PRUDENTIAL LIFE INS. CO. LTD. 3.84 3.57 3.70 3.37 12 IDBI FORTIS LIFE INS. CO. LTD 4.76 5.53 6.03 5.07 13 INDIA FIRST LIFE INS. CO. LTD 2.32 2.18 2.12 2.03 14 EXIDE LIFE INS. CO. LTD. 2.24 2.77 2.69 2.90 15 LIC OF INDIA 1.52 1.53 1.51 1.55 16 MAX LIFE INS. CO. LTD. 5.00 4.87 4.69 4.25 17 PNB METLIFE INDIA INS. CO. PVT. LTD 2.43 2.48 2.40 2.19 18 OM KOTAK MAHINDRA LIFE INS.CO. LTD. 3.06 2.98 3.01 3.13 19 RELIANCE LIFE INSURANCE CO. LTD. 4.28 4.14 4.12 3.55 20 SAHARA INDIA LIFE INS. CO. LTD 6.20 6.91 5.65 Not Available 21 SBI LIFE INS. CO. LTD 2.28 2.35 2.27 2.16 22 SHRIRAM LIFE INS. CO. LTD 6.59 5.10 5.18 4.15 23 STAR UNION DAI-ICHI LIFE INS. CO. LTD. 2.18 2.31 2.30 2.51 24 TATA AIA LIFE INS.CO. LTD 4.33 4.58 4.40 4.17 135ANNUAL REPORT 2014-15 136 11 TNEMETATS )AIDNI EDISTUO & NIHTIW( SRERUSNI EFIL-NON FO MUIMERP TCERID SSORG )erorC `( 51-4102 41-3102 31-2102 21-1102 11-0102 01-9002 90-8002 80-7002 70-6002 60-5002 50-4002 40-3002 30-2002 20-1002 10-0002 RERUSNI 48.9225 44.6154 4.1004 26.6823 69.9682 33.2842 92.9162 29.9732 43.6871 92.2721 26.158 35.674 84.692 69.141 -- ZNAILLA JAJAB 60.7541 51.3241 34.8121 00.488 09.355 28.013 05.82 -- -- -- -- -- -- -- -- AXA ITRAHB 34.0981 11.5581 98.0261 45.6431 99.769 58.487 44.586 43.225 37.113 81.022 52.961 50.79 97.41 -- -- MALADNAMALOHC 42.8341 55.2621 93.5011 67.919 61.006 16.673 94.681 18.9 -- -- -- -- -- -- -- ILARENEG ERUTUF 2.2813 89.6092 2.3542 64.9381 19.9721 04.519 12.933 06.022 00.491 49.002 36.571 59.211 94.9 -- -- OGRE CFDH 97.7766 61.6586 99.3316 41.0515 78.1524 60.5923 40.2043 21.7033 70.9892 68.2851 68.378 37.684 66.112 31.82 -- DRABMOL ICICI 69.9233 29.0392 30.5652 42.5791 81.3871 48.7541 60.4731 51.8211 74.4411 27.298 46.694 42.223 33.312 15.07 38.5 OIKOT OCFFI 17.133 87.352 70.281 04.341 42.71 -- -- -- -- -- -- -- -- -- -- T&L 26.12 32.32 3.12 97.41 09.4 23.1 -- -- -- -- -- -- -- -- -- EBQ AJEHAR 38.5172 28.8832 10.0102 55.2171 34.5561 56.9791 88.4191 24.6491 32.219 33.261 86.161 60.161 86.581 64.77 70.1 ECNAILER 2.9651 40.7341 0651 97.9741 99.3411 11.319 63.308 14.496 02.895 46.854 07.033 67.752 44.481 31.17 42.0 MARADNUS LAYOR 9.6751 75.7811 58.077 41.052 20.34 -- -- -- -- -- -- -- -- -- -- IBS 15.6941 95.0151 83.1451 44.6621 98.087 39.614 67.311 -- -- -- -- -- -- -- -- MARIRHS 31.4172 17.2632 80.5312 75.1461 90.3711 08.358 29.328 46.287 55.017 07.275 42.844 25.343 39.332 64.87 -- GIA ATAT 1.107 44.045 53.435 85.404 01.992 82.981 41.03 84.0 -- -- -- -- -- -- -- OPMOS LASREVINU 95.374 39.424 41.59 00.0 IDH AMGAM 58.382 18.921 91.2 00.0 NOCOEDIV YTREBIL 69.98053 03.01023 07.05972 30.51322 36.42471 00.77931 90.12321 98.19901 75.6468 66.2635 26.7053 38.7522 08.9431 56.764 41.7 ROTCES ETAVIRP )95.9( )25.41( )62.52( )70.82( )76.42( )44.31( )90.21( )21.72( )42.16( )98.25( )53.55( )72.76( )46.881( )89.3546( 26.28211 69.06201 2216.4919 96.5187 71.5426 99.5464 58.5924 79.1204 21.7283 43.6353 56.0183 79.9933 78.9682 14.9342 37.7222 LANOITAN 53.08451 6.72731 1884.37811 88.37001 15.5228 41.9907 97.5546 79.1516 87.6395 45.5765 61.3015 74.1294 97.2184 60.8914 50.3943 AIDNI WEN 29.1657 35.2827 4756.7376 06.4916 88.9655 76.4584 98.7704 22.0093 87.0204 77.9063 55.0903 47.9982 51.8682 46.8942 01.7422 LATNEIRO 37.19601 39.8079 6730.6629 92.9718 66.6736 50.9325 77.7724 65.9373 77.8943 87.4513 64.4492 74.3603 36.9692 84.1872 00.4252 DETINU 26.61054 60.08904 3597.17073 64.36223 12.71462 58.83812 13.70191 17.31871 54.38271 44.67951 28.84941 56.48241 44.02531 95.71911 88.19401 ROTCES CILBUP )58.9( )45.01( )09.41( )31.22( )69.02( )03.41( )62.7( )70.3( )81.8( )78.6( )56.4( )56.5( )54.31( )95.31( -- 85.60108 63.09927 3594.22056 94.87545 48.14834 58.51853 04.82413 06.50882 20.03952 01.93312 54.65481 94.24561 52.07841 42.58321 20.99401 & CILBUP LATOT ETAVIRP )47.9( )21.21( )41.91( )94.42( )14.22( )69.31( )11.9( )90.11( )15.12( )26.51( )75.11( )52.11( )60.02( )79.71( -- 96.9372 00.5933 24.7923 58.6752 50.0591 04.0251 44.338 11.538 76.465 38.555 27.945 12.963 -- -- -- CIA 93.2631 27.3031 52.7511 38.4001 74.588 00.318 86.447 73.866 66.716 33.775 55.515 84.544 87.473 25.833 -- CGCE 80.2014 27.8964 76.4544 86.1853 25.5382 93.3332 21.8751 74.3051 33.2811 71.3311 62.5601 07.418 87.473 25.833 00.0 DESILAICEPS SRERUSNI )7.21-( )84.5( )73.42( )13.62( )25.12( )68.74( )69.4( )61.72( )43.4( )73.6( )67.03( )83.711( )17.01( -- -- 21.308 74.296 99.916 46.574 96.282 66.411 41.84 79.2 -- -- -- -- -- -- -- HCINUM OLLOPA 28.12 33.0 KTT ANGIC 56.273 58.803 22.702 80.99 35.52 31.0 -- -- -- -- -- -- -- -- -- APUB XAM 08.572 03.251 97.83 -- -- -- -- -- -- -- -- -- -- -- -- HTLAEH ERAGILER 91.9641 70.1901 12.068 60.5801 55.7221 56.169 68.905 91.861 15.22 -- -- -- -- -- -- HTLAEH RATS 85.2492 20.5422 12.6271 87.9561 77.5351 44.6701 10.855 61.171 15.22 00.0 00.0 00.0 00.0 00.0 00.0 ENOLADNATS SRERUSNI HTLAEH 70.13 50.03 00.4 80.8 76.24 19.29 20.622 43.066 -- -- -- -- -- -- )70.13( )50.03( )4( )80.8( )76.24( )19.29( )20.622( )43.066( )0( -- -- -- -- -- -- 42.15178 41.43997 83.30217 69.91895 21.31284 86.52293 25.46533 32.08403 68.43172 72.27422 17.12591 81.75371 20.54251 67.32721 20.99401 LATOT DNARG )30.9( )62.21( )30.91( )70.42( )19.22( )78.61( )21.01( )33.21( )57.02( )11.51( )74.21( )58.31( )28.91( )91.12( )0( .tnec rep ni raey suoiverp eht revo htworg eht stneserper tekcarb eht ni serugiF :etoN .detrats ton ssenisub stneserper --ANNUAL REPORT 2014-15 137 21 TNEMETATS )AIDNI NIHTIW( SRERUSNI EFIL-NON FO EMOCNI MUIMERP TCERID SSORG ESIW TNEMGES )hkaL `( LATOT srehtO htlaeH rotoM eniraM eriF "stnemgeS/rerusnI" 41-3102 51-4102 41-3102 51-4102 41-3102 51-4102 41-3102 51-4102 41-3102 51-4102 41-3102 51-4102 SRERUSNI ETAVIRP 546154 589225 33805 19959 38797 15797 589962 838192 01221 80321 33883 89034 ZNAILLA JAJAB 613241 707541 1686 2377 528,81 326,71 722,501 253,901 253,3 602,3 1508 3977 AXA ITRAHB 115581 340981 59671 09481 16352 79732 179421 909721 4946 3146 09901 43421 MALADNAMALOHC 652621 528341 01502 49922 55281 03981 53607 01828 7115 9775 83711 21331 ILARENEG ERUTUF 996092 122813 25875 33607 22619 58249 604001 561501 5478 96601 37023 96473 OGRE CFDH 616586 087766 089121 33029 973861 940551 083123 185143 67152 34642 20784 47445 DRABMOL ICICI 290392 799233 45225 85154 28513 80093 371671 791412 14711 49311 34312 04232 OIKOT OCFFI 87352 17133 8452 2072 968,4 658,4 357,31 684,02 338 649 5733 1814 T&L 4232 3612 5612 7202 74 23 56 24 1 - 64 26 EBQ AJEHAR 288832 485172 51622 92813 26994 07915 564441 452461 4404 9954 69771 23981 ECNAILER 407341 029651 0116 1145 52552 50242 642201 349511 7013 3043 7176 8597 MARADNUS LAYOR 757811 096751 2536 11911 662,02 496,83 335,64 568,35 499 157,1 31644 96415 IBS 950151 256941 3921 8821 264 265 401,841 131,641 49 67 6011 5951 MARIRHS 172632 414172 61683 06215 83363 82973 304701 854221 86622 50942 64213 36843 GIA ATAT 54045 11107 8798 15571 953,9 198,31 571,32 031,52 618,1 416,1 61701 42911 OPMOS LASREVINU 39424 06374 8741 8403 51 431 948,83 911,04 495 180,1 7551 8792 IDH AMGAM 28921 68382 908 7541 414,1 504,5 107,9 612,91 211 763 749 1491 NOCOEDIV TREBIL 0301023 9009053 949814 415184 460285 021606 9603081 7940891 990701 351311 058982 227723 LATOT RERUSNI ETAVIRP RERUSNI CILBUP 8822201 9814211 43599 25849 196713 795983 798384 847715 05333 95892 61878 33129 LANOITAN 6004511 9390231 847231 285041 474843 937214 164064 106635 64117 82566 771141 984461 AIDNI WEN 587217 497047 967001 84689 058302 220022 368362 071682 65854 39793 74489 16169 LATNEIRO 398079 6209601 163531 993331 748682 788043 589073 719614 82785 37625 479811 941521 DETINU 2799583 8494524 114864 284764 1686511 5423631 6029751 6347571 180902 358881 314644 239774 LATOT RERUSNI CILBUP SRERUSNI HTLAEH ENOLADNATS 74296 31308 - - 74296 31308 - - - - - - HCINUM OLLOPA 43 3812 - - 43 3812 - - - - - - KTT ANGIC 58803 66273 - - 58803 66273 - - - - - - APUB XAM 13251 08572 - - 13251 08572 - - - - - - ERAGILER 801901 919641 - - 801901 919641 - - - - - - HTLAEH RATS 505422 162492 - - 505422 162492 - - - - - - LATOT SRERUSNI HTLAEH ENOLADNATS SRERUSNI DESILAICEPS 373031 042631 373031 042631 - - - - - - - - CGCE 105933 079372 105933 079372 - - - - - - - - CIA 478964 012014 478964 012014 - - - - - - - - LATOT SRERUSNI DESILAICEPS 1835577 8248648 4327531 6029531 0343691 6263622 5722833 2397373 081613 600203 362637 456508 latoT dnarG31 .ON TNEMETATS )TNEDICCA LANOSREP DNA SAESREVO/CITSEMOD-LEVART GNIDULCXE( ECNARUSNI HTLAEH )51-4102( DEREVOC SNOSREP FO REBMUN DNA MUIMERP SSORG )hkaL ` ni tnuomA ( )000' ni snosreP fo .oN ( )slautcA ni seiciloP fO .oN( semehcS ecnarusnI puorG gnidulcxe ecnarusnI laudividnI ecnarusnI retaolF/ylimaF derosnopS tnemnrevoG LATOT derosnopS tvoG gnidulcxe seiciloP retaolF/ ylimaF seiciloP laudividnI gnidulcxe YBSR gnidulcni semehcS semehcS eht fo emaN fo .oN fo .oN fo .oN fo .oN fo .oN ecnarusnI muimerP snosreP fo .oN muimerP snosreP fo .oN muimerP snosreP fo .oN muimerP snosreP fo .oN ssorG snosreP fo .oN ynapmoC seicilop seicilop seicilop seicilop muimerP seicilop derevoC derevoC derevoC derevoC derevoC 95.60036 1461 668804 28.27821 274 396861 50.12961 564 711832 17.21233 507 6502 znaillA jajaB 15.12161 8511 95202 28.028 43 25181 86.00351 4211 7012 AXA itrahB 69.58271 9703 32419 95.3921 64 73992 01.9722 741 11825 36.33501 2101 6668 46.9713 46.3781 00.9 SM ALOHC 83.61331 2571 66392 83.018 32 40631 25.0401 94 92841 17.68401 703 529 67.879 42.3731 00.8 ilareneG erutuF 30.63305 8483 113244 18.89462 632 143372 10.72051 314 751861 50.0198 183 318 48.99- 87.7182 OGRE CFDH 77.168431 85701 482166 71.89445 755 706155 87.23651 403 515601 53.55205 7171 4703 84.57441 59.9718 00.88 drabmoL ICICI 38.23153 76931 393511 34.5042 29 69095 23.9073 732 04255 81.87512 9731 0001 09.9347 02.95221 00.75 oikoT OCFFI 37.4963 081 475 27.5 0 021 99.9 33.0 111 20.9763 081 343 nocoediV ytrebiL 31.6374 557 60984 62.0491 53 09442 86.1391 37 12342 65.974 24 78 46.483 32.606 00.8 lareneG T&L 50.0 00.0 1 50.0 100.0 1 IDH amgaM 04.1 60.0 85 04.1 60.0 85 EBQ ajehaR 79.70744 95381 04248 58.4431 03 97072 57.4333 571 44465 00.12921 684 766 73.70172 97.76671 00.05 ecnaileR 13.63402 6882 505291 21.7238 632 279321 91.6364 091 01086 86.5535 307 615 23.7112 7571 00.7 maradnuS layoR 76.9399 546 3206 44.47 4 1583 77.69 4 4621 54.8679 736 809 lareneG IBS lareneG marirhS 59.46711 0612 836582 00.1732 98 771141 39.3604 412 058341 20.9291 133 375 00.1043 00.6251 00.83 GIA ataT 05.27231 4181 804281 18.552 22 60602 44.7835 298 100851 52.9267 009 1083 opmoS lasrevinU 516834 20036 5529652 007211 0481 2367341 19847 8913 2285011 930291 3099 63552 48985 16084 562 latoT etavirP 136373 47338 6698071 23.827701 8024 7198441 65.10571 686 784022 85.770451 1505 16001 22.32349 46.92437 00.10592 lanoitaN 979293 49963 9060361 13.520301 1232 626989 37.16975 5402 739826 18.890881 5049 46911 60.39834 99.22232 00.28 aidnI weN 375402 65032 4061431 90.21303 528 394784 48.39555 5391 549786 00.873311 4584 131661 63.9825 44.24451 00.53 latneirO 810713 72086 5722811 00.88465 3792 500767 00.32672 429 085033 00.945691 16271 94648 00.85363 00.96864 00.14 aidnI detinU 1028821 154112 4543685 455792 72301 1403963 086851 0955 9497681 301256 17563 508272 468971 469851 95692 latoT cilbuP 61057 8691 910484 67.81391 943 807122 60.81923 338 675162 57.48722 687 537 10.6- hcinuM ollopA 4212 83 44671 32.186 9 3808 82.0121 92 0659 53.232 53.0 1 KTT angiC 60273 8871 389132 88.3485 27 14327 92.95482 664 273951 01.8772 402 762 33.421 45.5401 00.3 apuB xaM 23852 3352 167821 44.5227 17 24716 90.4887 902 15756 76.1199 483 0621 60.118 03.9681 00.8 eragileR 926241 2527 9804361 12.30783 576 575085 72.07119 8961 5018401 45.3999 454 2935 65.1672 00.6244 00.71 htlaeH ratS 608282 97531 6946942 37717 6711 944449 246161 4323 4634451 00754 8281 5567 1963 1437 82 htlaeH desilaicepS latoT srerusnI 2269002 230882 50292901 620284 34331 2215706 312593 22021 5318154 348988 10384 699503 935242 663412 25992 latoT dnarG ANNUAL REPORT 2014-15 138ANNUAL REPORT 2014-15 139 41 TNEMETATS 51-4102 SRERUSNI EFIL-NON ROTCES CILBUP-OITAR SMIALC DERRUCNI )%( oitaR smialC derrucnI )hkaL nI `( )teN( derrucnI smialC )hkaL nI `( muimerP denraE teN RERUSNI latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF SRERUSNI CILBUP 45.77 85.48 20.011 98.45 43.85 87.47 815767 91017 443663 470262 84711 33365 618989 56938 569233 614774 83102 13357 LANOITAN 20.48 80.75 87.89 71.78 46.25 83.67 4088111 21028 203463 071694 76123 251441 9251331 886341 587863 912965 40116 337881 AIDNI WEN 98.18 09.63 20.711 44.77 04.04 40.27 051625 94133 715432 058302 92121 60524 715246 14898 014002 442362 91003 20095 LATNEIRO 24.48 47.74 89.811 85.86 39.48 12.57 303447 50294 750653 425252 56852 15606 326188 950301 642992 422863 45403 04608 DETINU 90.28 79.55 79.901 83.27 08.75 12.57 5776513 683532 0221231 8164121 80918 246303 4845483 455024 6041021 3018761 417141 607304 LATOT DESILAICEPS SRERUSNI 51.411 51.411 - - - - 40.053611 40.053611 - - - - 729101 729101 - - - - CGCE 74.801 74.801 - - - - 96.073371 96.073371 - - - - 838951 838951 - - - - CIA 86.011 86.011 - - - - 37.027982 37.027982 - - - - 567162 567162 - - - - LATOT 19.38 69.67 79.901 83.27 08.75 12.57 5946443 601525 0221231 8164121 80918 246303 9427014 913286 6041021 3018761 417141 607304 LATOT DNARG 41-3102 SRERUSNI EFIL-NON ROTCES CILBUP-OITAR SMIALC DERRUCNI )%( oitaR smialC derrucnI )hkaL nI `( )teN( derrucnI smialC )hkaL nI `( muimerP denraE teN RERUSNI latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF SRERUSNI CILBUP 81.18 65.87 92.401 53.96 71.27 91.37 168407 56357 133072 475292 50831 68725 762868 73959 612952 168124 92191 32127 LANOITAN 87.38 22.95 58.69 38.68 94.64 47.58 590839 29109 971572 682893 23412 600351 7869111 892251 021482 507854 20164 364871 AIDNI WEN 48.58 10.46 32.511 48.87 53.85 70.48 201115 69656 408781 714581 06661 52555 793595 636201 889261 971532 05582 44066 LATNEIRO 65.28 45.06 62.411 69.37 76.17 10.27 837726 87917 890732 819832 20512 34285 033067 098811 205702 050323 20003 78808 DETINU 02.38 55.46 91.601 15.77 03.95 93.08 6971872 032303 214079 6915111 99337 065913 1863433 167964 728319 4978341 387321 615793 LATOT DESILAICEPS SRERUSNI 32.28 32.28 00.0 00.0 00.0 00.0 70647 70647 0 0 0 0 53709 53709 0 0 0 0 CGCE 56.401 56.401 00.0 00.0 00.0 00.0 544271 544271 0 0 0 0 687461 687461 0 0 0 0 CIA 0 96.69 96.69 00.0 00.0 00.0 00.0 250742 250742 0 0 0 0 125552 125552 0 0 0 0 LATOT 51.48 78.57 00.0 00.0 00.0 00.0 8488203 282055 214079 6915111 99337 065913 2029953 282527 728319 4978341 387321 615793 LATOT DNARG51 TNEMETATS 51-4102 SRERUSNI EFIL-NON ROTCES ETAVIRP-OITAR SMIALC DERRUCNI )%( oitaR smialC derrucnI )hkaL nI `( )teN( derrucnI smialC )hkaL nI `( muimerP denraE teN RERUSNI latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF 29.17 03.07 95.37 16.17 28.98 88.36 995572 05881 25115 467981 8646 6639 091383 31862 21596 300562 1027 26641 ZNAILLA JAJAB 46.58 53.66 84.79 97.38 88.69 21.08 190301 7571 63681 00018 387 619 483021 8462 71191 96669 808 3411 AXA ITRAHB 36.47 12.66 34.25 32.97 47.17 87.36 216011 0273 59201 47329 4541 9672 012841 9165 53691 885611 7202 1434 MALADNAMALOHC 13.77 27.56 49.97 44.08 89.56 72.94 82438 9157 54311 67206 9362 9461 219701 14411 29141 33947 9993 7433 ILARENEG ERUTUF 27.87 24.18 84.65 53.09 17.311 49.78 887131 02711 34823 85037 2518 5106 904761 59341 54185 06808 9617 0486 OGRE CFDH 03.18 94.26 83.78 31.08 86.89 30.49 443443 92552 02729 060002 99751 53201 335324 45804 011601 376942 11061 58801 DRABMOL ICICI 71.47 14.64 14.29 94.37 69.67 79.45 351861 0216 41772 783821 8773 5512 417622 68131 98992 017471 9094 0293 OIKOT-OCFFI 25.49 65.19 65.201 95.19 81.991 71.201 84181 083 3483 54331 902 173 00291 514 7473 07541 501 363 nocoediV ytrebiL 36.17 20.98 39.15 47.27 68.321 95.18 56741 3011 9181 31601 935 296 41602 9321 2053 09541 634 848 T&L 48.38 93.59 76.29 16.18 )74.28( 77.493 35043 9361 16 96613 001 485 81604 8171 66 70883 )121( 841 IDH AMGAM 37.72 19.52 45.611 )29.611( )00.58( 19.451 245 474 14 )64( )1( 37 3591 1381 53 93 1 74 EBQ AJEHAR 50.49 67.77 94.701 81.19 70.58 34.57 034081 0435 19284 982121 1681 0563 748191 8686 72944 620331 7812 9384 ECNAILER 00.87 27.12 98.25 58.48 62.18 51.15 566101 663 24911 83478 689 339 643031 6861 77522 540301 3121 4281 MARADNUS LAYOR 87.58 14.25 73.08 62.301 19.041 09.04 37187 6302 29491 76894 5701 3075 33119 4883 25242 29284 367 24931 IBS 69.79 76.14 19.07 35.89 )80.29( 38.46 085631 533 251 096531 )42( 824 424931 308 412 127731 62 066 MARIRHS 18.07 76.63 49.96 36.57 03.37 48.38 616721 1006 29842 33297 85451 2302 422081 56361 19553 757401 88012 3242 GIA ATAT 56.47 23.82 22.201 76.28 71.58 46.74 06043 3681 67101 96681 275 9772 32654 9756 5599 48522 276 4385 OPMOS LASREVINU 96.97 16.06 71.97 19.18 83.78 91.66 6403491 25749 214563 5862731 84895 94305 5338342 343651 565164 6685761 49486 66067 LATOT-BUS ENOLADNATS SRERUSNI HTLAEH 30.36 - 30.36 - - - 34314 - 34314 - - - 88556 - 88556 - - - HCINUM OLLOPA 33.46 - 33.46 - - - 924 - 924 - - - 766 - 766 - - - KTT ANGIC 61.55 - 61.55 - - - 88371 - 88371 - - - 42513 - 42513 - - - APUB XAM 31.16 - 31.16 - - - 7939 - 7939 - - - 27351 - 27351 - - - ERAGILER 69.36 - 69.36 - - - 60156 - 60156 - - - 397101 - 397101 - - - HTLAEH RATS 81.26 - 81.26 - - - 266,331 - 266,331 - - - 549,412 - 549,412 - - - LATOT-BUS 72.87 16.06 77.37 19.18 83.78 91.66 8076702 25749 470994 5862731 84895 94305 9723562 343651 015676 6685761 49486 66067 LATOT DNARG ANNUAL REPORT 2014-15 140ANNUAL REPORT 2014-15 141 51 TNEMETATS…dtnoC 41-3102 SRERUSNI EFIL-NON ROTCES ETAVIRP - OITAR SMIALC DERRUCNI )%( oitaR smialC derrucnI )hkaL nI `( )teN( derrucnI smialC )hkaL nI `( muimerP denraE teN RERUSNI latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF latoT srehtO htlaeH rotoM eniraM eriF 92.27 74.93 06.68 16.57 44.73 51.13 825252 84101 33765 051871 1992 6054 603943 21752 31556 726532 9897 56441 ZNAILLA JAJAB 28.97 21.46 23.68 26.87 39.06 42.731 33278 8632 10241 07586 734 8561 092901 2963 35461 02278 617 8021 AXA ITRAHB 64.97 21.64 17.16 32.68 03.75 91.86 047311 8963 06921 63139 2511 4972 631341 8108 20012 900801 1102 7904 MALADNAMALOHC 39.67 36.05 58.48 06.87 29.68 33.66 58386 4593 81221 64384 6481 0202 29888 9087 10441 11516 4212 6403 ILARENEG ERUTUF 54.08 62.14 19.29 46.19 59.311 08.82 205721 88131 52773 11196 7595 1251 394851 66913 60604 21457 8225 2825 OGRE CFDH 41.38 45.28 20.39 64.87 64.79 39.66 198163 78494 618601 150081 36251 37201 192534 45995 238411 594922 16651 94351 DRABMOL ICICI 78.57 47.37 71.78 51.47 15.39 86.47 371841 85411 90271 317211 3104 0872 013591 93551 14791 510251 2924 3273 OIKOT OCFFI 66.58 77.85 46.09 72.78 96.35 45.301 05251 128 2993 5159 232 986 30871 8931 4044 30901 334 566 T&L 50.26 38.55 54.69 60.313 )66.33( 66.35 6411 879 1 341 )1( 52 7481 1571 2 64 3 64 EBQ AJEHAR 71.29 02.37 87.79 62.19 01.39 59.88 263061 4523 72863 928411 8971 5563 679371 4444 36673 828521 1391 9014 ECNAILER 23.67 84.23 90.75 72.38 24.67 23.64 914001 7591 16711 29158 237 777 275131 4206 30602 013201 859 8761 MARADNUS LAYOR 08.48 22.711 36.84 29.38 70.76 70.05 88435 91661 344 76503 872 2855 37036 77141 219 12463 414 84111 IBS 94.09 13.821 00.09 83.09 00.88 00.57 000921 977 921 117721 61 763 365241 706 341 603141 81 984 MARIRHS 81.86 84.74 82.68 37.47 37.74 83.26 940411 94811 94451 64647 33401 3761 872761 35942 60971 28899 65812 2862 GIA ATAT 41.47 02.24 49.801 97.77 73.101 65.14 34503 7632 0607 12881 234 4681 49114 8065 1846 59142 624 5844 OPMOS LASREVINU 68.48 10.534 00.0 67.38 )46.01( 23.571 46391 642 0 29091 5 22 91822 75 0 49722 )54( 21 IDH AMGAM 93.601 58.921 92.88 65.601 )11.551( 43.84 7334 393 63 4183 51 97 7704 303 14 0853 )01( 461 NOCOEDIV YTREBIL 85.97 00.36 26.78 04.18 42.17 54.55 1147871 265331 165333 6044321 99554 48204 0295422 310212 996083 5556151 50046 74627 LATOT-BUS LAEH ENOLADNATS SRERUSNI HT 95.56 00.0 95.56 00.0 00.0 00.0 44653 - 44653 - - - 04345 - 04345 - - - HCINUM OLLOPA 86.95 00.0 86.95 00.0 00.0 00.0 1 - 1 - - - 1 - 1 - - - KTT ANGIC 70.95 00.0 70.95 00.0 00.0 00.0 04041 - 04041 - - - 66732 - 66732 - - - APUB XAM 29.97 00.0 29.97 00.0 00.0 00.0 5256 - 5256 - - - 4618 - 4618 - - - ERAGILER 12.76 00.0 12.76 00.0 00.0 00.0 59354 - 59354 - - - 04576 - 04576 - - - HTLAEH RATS 60.66 00.0 60.66 00.0 00.0 00.0 306101 - 306101 - - - 118351 - 118351 - - - LATOT-BUS 27.87 00.36 14.18 04.18 42.17 54.55 9208773 421762 923078 1188642 89119 86508 2649974 620424 2209601 1113303 010821 492541 LATOT .stnuoma evitagen setacidni stekcarb ni serugiF :etoNANNUAL REPORT 2014-15 142 61 TNEMETATS SRERUSNI EFIL-NON FO TNEMEGANAM REDNU STESSA )erorC `( ot snaoL & gnisuoH tnemnrevoG etatS lartneC devorppA erutcurtsarfnI stnemtsevnI latoT stnemtsevnI rehtO rof tnemnrevoG etatS devorppA rehtO & tnemnrevoG stnemtsevnI stnemtsevnI *EFF dna gnisuoH seitiruceS seitiruceS rerusnI 4102.30.03 5102.30.13 4102.30.03 5102.30.13 4102.30.03 5102.30.13 4102.30.03 5102.30.134102.30.03 5102.30.13 4102.30.03 5102.30.13 4102.30.03 5102.30.13 12.1466 23.6157 64.73 16.831 44.6351 46.6831 10.6871 36.5131 70.176 13.886 56.445 67.674 06.5602 73.0153 ZNAILLA JAJAB 54.0791 29.0642 59.21 09.9 37.829 16.479 96.262 70.583 80.151 63.613 68.101 35.841 41.315 64.626 AXA ITRAHB 87.8232 01.4613 20.06 00.0 12.668 70.8831 02.953 92.904 85.582 84.163 96.672 02.123 90.184 60.486 SM MALADNAMALOHC 94.3941 92.3791 43.0 23.0 02.004 39.295 32.593 88.715 28.89 07.361 48.122 35.932 60.773 39.854 ILARENEG ERUTUF 83.2413 08.6573 68.43 08.101 73.199 05.1901 22.938 02.3701 37.342 07.282 03.781 07.212 09.548 09.499 OGRE CFDH 44.3029 88.7489 66.121 21.781 62.9042 84.4732 22.9742 79.4642 43.578 59.2001 01.081 01.084 68.7313 62.8333 DRABMOL ICICI 60.6753 08.8634 00.0 00.0 00.3841 12.6671 34.555 02.037 04.683 43.194 75.753 81.374 66.397 78.709 OIKOT OCFFI 17.803 82.094 25.11 80.81 34.811 53.751 01.84 55.07 99.82 02.94 51.51 03.02 15.68 08.471 LARENEG T&L 73.082 00.665 00.0 00.0 89.66 22.18 47.47 64.021 48.92 59.94 00.0 00.0 08.801 73.413 NOCOEDIV YTREBIL 19.645 00.667 00.0 00.0 49.222 05.542 34.07 47.341 01.05 77.18 95.9 65.64 58.391 34.842 IDH AMGAM 87.432 87.932 00.0 00.0 01.601 46.08 11.03 25.05 52.02 83.03 00.0 00.0 13.87 42.87 EBQ AJEHAR 20.2483 78.6405 38.81 89.23 92.9741 36.2802 96.395 94.906 79.173 66.636 45.451 84.27 07.3221 36.2161 ECNAILER 12.4222 95.8842 00.0 00.0 83.734 01.684 25.577 29.277 50.003 01.603 89.96 46.47 82.146 38.848 MARADNUS LAYOR 45.4561 85.7662 00.0 00.52 69.247 55.3231 83.162 01.113 61.841 77.971 95.761 50.142 64.433 11.785 LARENEG IBS 77.9013 64.1835 00.0 10.0 50.064 17.187 80.139 79.1491 70.404 99.849 55.723 34.284 10.789 53.6221 MARIRHS 36.6972 59.5103 00.0 00.0 52.861 53.662 41.8401 00.8821 93.314 96.014 00.0 48.08 58.6611 70.079 GIA ATAT 26.988 73.1301 00.0 00.0 37.482 76.782 36.151 90.022 28.021 58.031 0049.83 67.82 05.392 00.463 OPMOS LASREVINU 73.34244 99.18745 56.792 28.315 23.20721 61.76351 18.16601 80.52421 66.9954 02.1316 53.3562 60.9933 75.82331 86.54961 LATOT ETAVIRP 80.68941 63.28461 06.941 35.693 43.1505 10.9645 55.4942 32.9362 50.799 29.289 19.0962 93.4223 36.2063 82.0773 LANOITAN 02.11012 11.31842 55.242 77.472 74.9858 62.8529 48.4762 60.4213 43.0981 20.8022 34.7712 76.1732 75.6345 33.6757 AIDNI WEN 22.71511 25.37421 85.782 04.862 63.5734 68.7074 94.5671 61.1691 97.849 15.8501 23.5241 83.2371 96.4172 12.5472 LATNEIRO 21.97571 85.79091 18.885 86.537 33.3226 22.4866 52.3433 46.9643 61.3171 50.4781 22.4571 80.8412 53.6593 19.5814 AIDNI DETINU 26.39056 75.66827 45.8621 83.5761 05.93242 53.91162 31.87201 90.49111 43.9455 05.3216 88.7408 25.6749 42.01751 37.77281 LATOT CILBUP 02.356 98.347 05.62 72.51 02.372 42.843 63.17 62.18 50.28 01.96 80.94 40.45 10.151 89.571 HCINUM OLLOPA 84.39 68.341 00.0 67.2 80.52 78.63 60.01 21.03 10.5 88.41 00.0 44.51 33.35 97.34 KTT ANGIC 78.633 75.924 92.7 98.9 11.921 28.802 48.94 35.05 79.91 57.62 00.0 43.5 66.031 42.821 APUB XAM 06.781 09.403 00.5 00.22 00.35 09.501 04.24 09.14 00.71 02.63 02.31 03.32 00.75 06.57 HTLAEH ERAGILER 81.015 91.947 00.0 00.0 55.371 55.762 10.09 65.69 10.36 11.38 00.0 00.0 16.381 79.103 HTLAEH RATS 23.1871 14.1732 97.83 29.94 49.356 83.769 76.362 73.003 40.781 40.032 82.26 21.89 16.575 85.527 HTLAEH ENOLADNATS )LATOT( ETAVIRP 21.19682 73.49603 19.0541 23.5062 30.86611 33.08211 52.0433 78.7533 53.6042 58.8432 96.2653 96.6414 98.2626 13.5596 )rerusnieR( CIG 24.908931 43.417061 88.5503 44.4484 97.36294 22.43735 68.34542 14.77272 83.24721 85.33841 02.62341 93.02171 13.77853 03.40924 LATOT EFIL-NON 75.8204 55.1174 22.021 00.4 52.4361 44.9702 22.125 47.985 41.373 10.015 28.544 03.235 29.339 60.699 CIA 60.8965 74.8176 01.82 03.03 65.6412 51.6132 88.487 96.0511 08.106 35.447 30.578 16.069 96.1621 91.6151 CGCE 36.6279 20.03411 23.841 03.43 18.0873 95.5934 01.6031 34.0471 49.479 45.4521 58.0231 19.2941 16.5912 52.2152 DESILAICEPS )LATOT( SRERUSNI stnempiuqE gnithgiF eriF :EFF *ANNUAL REPORT 2014-15 STATEMENT 17 EQUITY SHARE CAPITAL OF NON-LIFE INSURERS (` Crore) Infusion As on 31st As on 31st Foreign Indian Insurer During FDI (%) March, 2014 March, 2015 Promoter Promoter the year BAJAJ ALLIANZ 110.22 0.00 110.22 28.66 81.56 26.00% BHARTI AXA 976.55 262.11 1238.66 275.25 963.41 22.22% CHOLAMANDALAM MS 298.80 0.00 298.80 77.69 221.11 26.00% FUTURE GENERALI 710.00 0.00 710.00 181.05 528.95 25.50% HDFC ERGO 529.28 9.34 538.62 139.17 399.45 25.84% ICICI LOMBARD 445.05 1.54 446.59 114.49 332.10 25.64% IFFCO TOKIO 269.32 0.00 269.32 70.02 199.30 26.00% L&T 495.00 125.00 620.00 0.00 620.00 0.00% MAGMA HDI 100.00 0.00 100.00 25.50 74.50 25.50% LIBERTY VIDEOCON 359.35 320.00 679.35 122.90 556.45 18.09% RAHEJA QBE 207.00 0.00 207.00 53.82 153.18 26.00% RELIANCE 122.77 0.00 122.77 0.00 122.77 0.00% ROYAL SUNDARAM 315.00 0.00 315.00 81.90 233.10 26.00% SBI 175.00 28.00 203.00 52.78 150.22 26.00% SHRIRAM 258.00 0.09 258.09 0.00 258.09 0.00% TATA AIG 505.00 0.00 505.00 131.30 373.70 26.00% UNIVERSAL SOMPO 350.00 0.00 350.00 91.00 259.00 26.00% PRIVATE TOTAL 6226.37 746.08 6972.45 1445.53 5526.89 20.73% NATIONAL 100.00 0.00 100.00 0.00 100.00 0.00% NEW INDIA 200.00 0.00 200.00 0.00 200.00 0.00% ORIENTAL 150.00 50.00 200.00 0.00 200.00 0.00% UNITED INDIA 150.00 0.00 150.00 0.00 150.00 0.00% PUBLIC TOTAL 600.00 50.00 650.00 0.00 650.00 0.00% TOTAL (NON-LIFE) 6826.37 796.08 7622.45 1445.53 6176.89 18.96% STANDALONE HEALTH PRIVATE APOLLO MUNICH 330.98 18.24 349.22 89.04 260.18 25.50% CIGNA TTK 100.00 100.00 200.00 52.00 148.00 26.00% MAX BUPA 669.00 121.50 790.50 205.53 584.97 26.00% RELIGARE HEALTH 250.00 100.00 350.00 0.00 350.00 0.00% STAR HEALTH 333.86 28.28 362.14 92.41 269.73 25.52% STANDALONE TOTAL 1683.84 368.02 2051.86 438.98 1612.88 21.39% SPECIALISED INSURERS AIC 200.00 0.00 200.00 0.00 200.00 0.00% ECGC 1100.00 100.00 1200.00 0.00 1200.00 0.00% SPECIALISED TOTAL 1300.00 100.00 1400.00 0.00 1400.00 0.00% REINSURER GIC 430.00 0.00 430.00 0.00 430.00 0.00% REINSURER TOTAL 430.00 0.00 430.00 0.00 430.00 0.00% GRAND TOTAL (NON-LIFE) 10240.21 1264.10 11504.31 1884.51 9619.77 16.38% 143ANNUAL REPORT 2014-15 STATEMENT 18 SOLVENCY RATIO OF NON -LIFE INSURERS Sl No. Insurer March 2014 June 2014 September 2014 December 2014 March 2015 PRIVATE INSURERS 1 BAJAJ ALLIANZ 1.96 2.17 2.08 1.82 1.82 2 BHARTI AXA 1.56 1.62 1.55 1.58 1.57 3 CHOLAMANDALAM MS 1.61 1.60 1.55 1.57 1.59 4 FUTURE GENERALI 1.62 1.66 1.68 1.63 1.66 5 HDFC ERGO 1.60 1.63 1.55 1.59 1.65 6 ICICI LOMBARD 1.72 1.74 1.81 1.96 1.95 7 IFFCO TOKIO 1.67 1.62 1.67 1.60 1.65 8 L&T 1.57 1.59 1.55 1.67 1.97 9 LIBERTY VIDEOCON 4.22 3.35 2.53 7.90 6.71 10 MAGMA HDI 1.97 1.62 1.53 1.54 1.24 11 RAHEJA QBE 4.07 4.08 4.09 4.26 4.26 12 RELIANCE 1.51 1.52 1.53 1.51 1.53 13 ROYAL SUNDARAM 1.61 1.59 1.63 1.71 1.64 14 SBI 2.51 2.09 3.65 3.27 2.80 15 SHRIRAM 1.51 1.59 1.71 1.81 1.79 16 TATA AIG 1.59 1.68 1.69 1.60 1.55 17 UNIVERSAL SOMPO 1.91 2.09 2.12 1.93 1.86 PUBLIC INSURERS 18 NATIIONAL 1.55 1.57 1.55 1.52 1.52 19 NEW INDIA 2.61 2.53 2.67 2.60 2.44 20 ORIENTAL 1.64 1.64 1.65 1.62 1.68 21 UNITED INDIA 2.54 2.60 2.63 2.53 2.36 STANDALONE HEALTH PRIVATE 22 APOLLO MUNICH 1.84 1.71 1.73 1.68 1.72 23 MAX BUPA 2.13 1.85 1.98 2.13 2.10 24 RELIGARE HEALTH 2.10 1.56 1.55 2.04 2.04 25 STAR HEALTH 1.50 1.18 1.01 1.00 2.40 26 CIGNA TTK 1.70 2.34 2.73 2.10 2.10 SPECIALISED INSURERS 27 AIC 2.60 2.52 3.21 3.30 3.18 28 ECGC 11.02 11.50 11.44 10.38 6.61 REINSURER 29 GIC 2.73 2.91 3.06 3.15 3.04 144ANNUAL REPORT 2014-15 STATEMENT 19 STATUS OF GRIEVANCES - LIFE INSURERS FOR 2014-15 Duration wise analysis of pending 2014-15 complaints Insurer Reported Resolved % Resolved Pending at Opening Less than Between 15 More than during the during during the the end of Balance 15 days and 30 days 30 days year the year year the year Aegon Religare 76 6897 6602 94.68 371 256 9 106 Aviva 0 4185 4185 100.00 0 0 0 0 Bajaj Allianz 10 19795 19530 98.61 275 115 76 84 Bharti Axa 16 5642 5307 93.80 351 54 11 286 Birla Sun Life 40 23629 23658 99.95 11 1 1 9 Canara HSBC 0 4559 4500 98.71 59 59 0 0 DHFL Pramerica 42 1593 982 60.06 653 37 14 602 Edleweiss Tokio 0 514 481 93.58 33 27 0 6 Exide Life 13 9488 8867 93.33 634 292 192 150 Future Generali 101 5390 5110 93.06 381 300 4 77 HDFC Standard 666 32214 30582 93.01 2298 229 44 2025 ICICI Prudential 33 11801 11775 99.50 59 39 10 10 IDBI Federal 2 771 773 100.00 0 0 0 0 India First 47 1287 1216 91.15 118 46 1 71 Kotak Mahindra 8 4616 4496 97.23 128 126 0 2 Max Life 0 16553 16549 99.98 4 4 0 0 PNB MetLife 4 4820 4817 99.85 7 6 0 1 Reliance 45 24763 24318 98.02 490 452 25 13 Sahara 0 27 27 100.00 0 0 0 0 SBI Life 5 12273 12263 99.88 15 12 0 3 Shri Ram 8 240 234 94.35 14 4 1 9 Star Union Daichi 9 2301 2215 95.89 95 26 10 59 Tata AIA 55 4690 4632 97.62 113 20 9 84 LIC 0 80944 80944 100.00 0 0 0 0 Total 1180 278992 274063 97.82 6109 2105 407 3597 145ANNUAL REPORT 2014-15 STATEMENT 20 STATUS OF GRIEVANCES - NON LIFE INSURERS FOR 2014-15 Duration wise analysis of 2014-15 pending complaints Insurer Reported Resolved % Resolved Pending at Between Opeing Less than More than during during during the end of 15 and 30 Balance 15 days 30 days the year the year the year the year days Bajaj Allianz General Insurance 5 4770 4571 95.73 204 14 7 183 Bharati Axa General Insurance 0 4586 4481 97.71 105 49 7 49 Cholamandalam MS General 10 2508 2415 95.91 103 25 2 76 Future Generali India Ins. 0 3727 3727 100.00 0 0 0 0 HDFC ERGO General Insurance 2 2086 2065 98.90 23 23 0 0 ICICI Lombard General Insurance 24 5930 5582 93.75 372 252 36 84 IFFCO Tokio General Insurance 9 2043 1889 92.06 163 19 20 124 L&T General. Insurance 1 431 427 98.84 5 4 1 0 Liberty Videocon Genral Insurance 0 356 350 98.31 6 4 0 2 Magma HDI General Insurance 0 101 92 91.09 9 4 1 4 Raheja QBE 0 0 0 0.00 0 0 0 0 Reliance General Insurance 40 1762 1735 96.28 67 40 5 22 Royal Sundaram Alliance General 2 4976 4912 98.67 66 64 0 2 SBI General Insurance 42 1325 1050 76.81 317 16 11 290 Shriram General Insurance 0 135 135 100.00 0 0 0 0 Tata- AIG General Insurance 0 3963 3926 99.07 37 36 0 1 Universal Sompo General Ins 0 358 358 100.00 0 0 0 0 Total Private Insurers 135 39057 37715 96.23 1477 550 90 837 National Insurance 256 4740 4821 96.50 175 31 15 129 The New India Assurance 99 3204 3201 96.91 102 26 11 65 The Oriental Insurance 66 2165 2172 97.36 59 8 1 50 United India Insurance 218 5705 5868 99.07 55 26 2 27 Total - PSU insurers 639 15814 16062 97.62 391 91 29 271 STANDALONE HEALTH INSURERS Apollo MUNICH Health Insurace 3 2061 2051 99.37 13 12 0 1 CignaTTK Health Insurance 0 75 71 94.67 4 4 0 0 Max Bupa Health Insurance 2 427 429 100.00 0 0 0 0 Star Health and Allied Insurance 12 2785 2631 94.07 166 110 1 55 Religare Health Insurance 0 423 421 99.53 2 0 0 2 SPECIALISED INSURERS Agriculture Insurance - - - - - - - - ECGC of India 43 46 43 48.31 46 0 0 46 Grand total: 834 60688 59423 96.59 2099 767 120 1212 146ANNEXUREANNUAL REPORT 2014-15 ANNEXURE 1 INSURANCE COMPANIES OPERATING IN INDIA LIFE INSURERS* Public Sector Private Sector 1. Life Insurance Corporation of India 1. Aegon Religare Life Insurance Co. Ltd. 2. Aviva Life Insurance Co. Ltd. 3. Bajaj Allianz Life Insurance Co. Ltd. 4. Bharti AXA Life Insurance Co. Ltd. 5. Birla Sun Life Insurance Co. Ltd. 6. Canara HSBC OBC Life Insurance Co. Ltd. 7. DHFL Pramerica Life Insurance Co. Ltd. 8. Edleweiss Tokio Life Insurance Co. Ltd. 9. Exide Life Insurance Co. Ltd. 10. Future Generali Life Insurance Co. Ltd. 11. HDFC Standard Life Insurance Co. Ltd. 12. ICICI Prudential Life Insurance Co. Ltd. 13. IDBI Federal Life Insurance Co. Ltd. 14. India First Life Insurance Co. Ltd. 15. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 16. Max Life Insurance Co. Ltd. 17. PNB Met Life India Insurance Co. Ltd. 18. Reliance Life Insurance Co. Ltd. 19. Sahara Life Insurance Co. Ltd. 20. SBI Life Insurance Co. Ltd. 21. Shriram Life Insurance Co. Ltd. 22. Star Union Dai-ichi Life Insurance Co. Ltd. 23. TATA AIA Life Insurance Co. Ltd. * As on 31st March, 2015 149ANNUAL REPORT 2014-15 Contd... ANNEXURE 1 NON-LIFE INSURERS* Public Sector Private Sector 1 National Insurance Co. Ltd. 1 Bajaj Allianz General Insurance Co. Ltd. 2 New India Assurance Co. Ltd. 2 Bharti AXA General Insurance Co. Ltd. 3 Oriental Insurance Co. Ltd. 3 Cholamandalam MS General Insurance Co. Ltd 4 United India Insurance Co. Ltd. 4 Future Generali India Insurance Co. Ltd. Specialised Insurers 5 HDFC ERGO General Insurance Co. Ltd. 5 Agriculture Insurance Co. Ltd. 6 ICICI Lombard General Insurance Co. Ltd. 6 Export Credit Guarantee Corporation Ltd. 7 IFFCO Tokio General Insurance Co. Ltd. 8 L & T General Insurance Co. Ltd 9 Liberty Videocon General Insurance Co. Ltd. 10 Magma HDI General Insurance Co. Ltd. 11 Raheja QBE General Insurance Co. Ltd. 12 Reliance General Insurance Co. Ltd. 13 Royal Sundaram Alliance Insurance Co. Ltd. 14 SBI General Insurance Co. Ltd. 15 Shriram General Insurance Co. Ltd. 16 TATA AIG General Insurance Co. Ltd. 17 Universal Sompo General Insurance Co. Ltd. Standalone Health Insurers 18 Apollo Munich Health Insurance Co. Ltd. 19 Cigna TTK Health Insurance Co. Ltd 20 Max Bupa Health Insurance Co. Ltd. 21 Religare Health Insurance Co. Ltd. 22 Star Health and Allied Insurance Co. Ltd. RE - INSURER* General Insurance Corporation of India * As on 31st March, 2015 150ANNUAL REPORT 2014-15 ANNEXURE 2 FEE STRUCTURE FOR INSURERS AND VARIOUS INTERMEDIARIES Sl. Insurer / Periodicity Processing Fee Registration Fee Renewal Fee No Intermediary of Renewal 1 Insurer (Life / Non Life / - `50,000 1/20th of 1% of Gross Direct Premium Every year Reinsurer) written in India subject to a minimum of (by 31st `50,000 and maximum of `5 crore December) 2 Third Party Administrator `20000 `30000 `15000 3 years 3 Brokers-Direct - `20000 `1,000 as renewal fee+ annual fee of 3 years 0.50% of remuneration earned in the preceding financial year subject to a minimum of `25,000 and maximum of `1,00,000 Brokers-Reinsurance - `25000 `1,000 as renewal fee+ annual fee of 3 years 0.50% of remuneration earned in the preceding financial year subject to a minimum of `75,000 and maximum of `3,00,000 Brokers-Composite - `40000 `1,000 as renewal fee+ annual fee of 3 years 0.50% of remuneration earned in the preceding financial year subject to a minimum of `1,25,000 and maximum of `5,00,000 4 Surveyors and Loss - `1000 `100, `750 penalty within six months of 5 years Assessors (Individual expiry of licence and Corporate) 5 Corporate Agents - `250 for Corporate `250 3 Years Insurance Licence and ` 500 for the Certificate to the Specified Person 6 Web Aggregators - `10000 `10000 3 Years 7 Common Service - - `1000 3 Years Centre - Special Purpose Vehicles 8 Referrals - `10,000 `10000 3 Years 9 Amalgamation and 1/10th of 1% of Gross - - - transfer of general Direct Premium written insurance business direct in India by the transacting entities during the financial year preceding the financial year in which the application is filled with the Authority subject to a minimum of `50 lakh and maximum of `5 crore 10 Insurance Marketing Firm - `5000 `2000 3 years 11 Insurance Repository `10000 `100000 `50000 3 Years Note: In addition service tax as per prevailing rate will be levied on the applicable fee amount. 151ANNUAL REPORT 2014-15 ANNEXURE 3 (i) INDIAN ASSURED LIVES MORTALITY (2006-08) ULT. Published Mortality Table, effective 1st April, 2013, within the meaning of Regulation 4 of IRDA (Asset, Liabilities and Solvency Margin of Insurers) Published with the concurrence of IRDA vide its letter dated 20th February 2013 Age x is defined as age nearest birthday. Age (x) Mortality rate (qx) Age (x) Mortality rate (qx) 0 0.004445 58 0.009944 1 0.003897 59 0.010709 2 0.002935 60 0.011534 3 0.002212 61 0.012431 4 0.001670 62 0.013414 5 0.001265 63 0.014497 6 0.000964 64 0.015691 7 0.000744 65 0.017009 8 0.000590 66 0.018462 9 0.000492 67 0.020061 10 0.000440 68 0.021819 11 0.000428 69 0.023746 12 0.000448 70 0.025855 13 0.000491 71 0.028159 14 0.000549 72 0.030673 15 0.000614 73 0.033412 16 0.000680 74 0.036394 17 0.000743 75 0.039637 18 0.000800 76 0.043162 19 0.000848 77 0.046991 20 0.000888 78 0.051149 21 0.000919 79 0.055662 22 0.000943 80 0.060558 23 0.000961 81 0.065870 24 0.000974 82 0.071630 25 0.000984 83 0.077876 26 0.000994 84 0.084645 152ANNUAL REPORT 2014-15 Contd... ANNEXURE 3 (i) INDIAN ASSURED LIVES MORTALITY (2006-08) ULT. Age (x) Mortality rate (qx) Age (x) Mortality rate (qx) 27 0.001004 85 0.091982 28 0.001017 86 0.099930 29 0.001034 87 0.108540 30 0.001056 88 0.117866 31 0.001084 89 0.127963 32 0.001119 90 0.138895 33 0.001164 91 0.150727 34 0.001218 92 0.163532 35 0.001282 93 0.177387 36 0.001358 94 0.192374 37 0.001447 95 0.208585 38 0.001549 96 0.226114 39 0.001667 97 0.245067 40 0.001803 98 0.265555 41 0.001959 99 0.287699 42 0.002140 100 0.311628 43 0.002350 101 0.337482 44 0.002593 102 0.365411 45 0.002874 103 0.395577 46 0.003197 104 0.428153 47 0.003567 105 0.463327 48 0.003983 106 0.501298 49 0.004444 107 0.542284 50 0.004946 108 0.586516 51 0.005483 109 0.634244 52 0.006051 110 0.685737 53 0.006643 111 0.741283 54 0.007256 112 0.801191 55 0.007888 113 0.865795 56 0.008543 114 0.935453 57 0.009225 115 0.985796 153ANNUAL REPORT 2014-15 ANNEXURE 3 (ii) PUBLISHED MORTALITY TABLES [Within the meaning of Regulation 4 of IRDA (Assets, Liabilities and Solvency Margin of Insurers) Regulations, 2000] MORTALITY FOR ANNUITANTS - LIC (A) (1996-98) ULTIMATE RATES Age (x) Mortality rate (qx) Age (x) Mortality rate (qx) 20 0.000919 51 0.004719 21 0.000961 52 0.005386 22 0.000999 53 0.006058 23 0.001033 54 0.006730 24 0.001063 55 0.007401 25 0.001090 56 0.008069 26 0.001113 57 0.008710 27 0.001132 58 0.009397 28 0.001147 59 0.010130 29 0.001159 60 0.010907 30 0.001166 61 0.011721 31 0.001170 62 0.011750 32 0.001170 63 0.012120 33 0.001171 64 0.012833 34 0.001201 65 0.013889 35 0.001246 66 0.015286 36 0.001308 67 0.017026 37 0.001387 68 0.019109 38 0.001482 69 0.021534 39 0.001593 70 0.024301 40 0.001721 71 0.027410 41 0.001865 72 0.030862 42 0.002053 73 0.034656 43 0.002247 74 0.038793 44 0.002418 75 0.043272 45 0.002602 76 0.048093 46 0.002832 77 0.053257 47 0.003110 78 0.058763 48 0.003438 79 0.064611 49 0.003816 80 0.070802 50 0.004243 154ANNUAL REPORT 2014-15 Contd... ANNEXURE 3 (ii) MORTALITY FOR ANNUITANTS - LIC (A) (1996-98) ULTIMATE RATES Age (x) Mortality rate (qx) Age (x) Mortality rate (qx) 81 0.077335 100 0.266511 82 0.084210 101 0.279892 83 0.091428 102 0.293614 84 0.098988 103 0.307679 85 0.106891 104 0.322087 86 0.115136 105 0.336836 87 0.123723 106 0.351928 88 0.132652 107 0.367363 89 0.141924 108 0.383139 90 0.151539 109 0.399258 91 0.161495 110 0.415720 92 0.171794 111 0.432524 93 0.182436 112 0.449670 94 0.193419 113 0.467159 95 0.204746 114 0.484989 96 0.216414 115 0.503163 97 0.228425 116 0.521678 98 0.240778 117 0.540536 99 0.253473 118 0.559737 155ANNUAL REPORT 2014-15 ANNEXURE 4 LIST OF LIFE INSURNACE PRODUCTS & RIDERS APPROVED BY IRDAI IN YEAR 2014-15 Sl. No Company Name Name of the Product UIN 1 Bajaj Allianz Life Bajaj Allianz life Secure 116N130V01 Insurance Co. Ltd. Bajaj Allianz Lifestyle Secure 116N129V01 Bajaj AllianzYoung Assure 116N128V01 Bajaj Allianz Elite Assure 116N127V01 Bajaj Allianz Pension Guarantee 116N036V04 Bajaj Allianz Retire Rich 116L126V01 Bajaj Allianz Fortune Gain 116L125V01 Bajaj Allianz Family Income Benefit Rider 116B037V01 Bajaj Allianz Accidental Permanent Total/ Partial Disability Benefit Rider 116B036V01 Bajaj Allianz Critical Illness Benefit Rider 116B035V01 Bajaj Allianz Accidental Death Benefit Rider 116B034V01 Bajaj Allianz Waiver of Premium Benefit Rider (Non-Linked) 116B031V01 Group Accidental Permanent Total/Partial Disability Benefit 116B010V02 Bajaj Allianz Group Accidental Death Benefit Rider 116B005V03 Bajaj Allianz UL Family Income Benefit Rider 116A033V01 Bajaj Allianz UL Crititcal Illness Rider 116A032V01 Bajaj Allianz UL Waiver of Premium Benefit Rider 116A030V01 Bajaj Allianz UL Accidental Permanent Total/Partial Disability Benefit 116A014V02 Bajaj Allianz UL Accidental Death Benefit Rider 116A013V02 2 Reliance Life Insurance Co. Ltd. Reliance Education Plan 121N106V01 Reliance Health Total 121N105V01 Reliance Group Term Assurance Plus 121N104V01 Reliance Bluechip Savings Insurance Plan 121N103V01 Reliance Traditional Employee Benefit Plan 121N102V01 Reliance Life Fixed Savings 121N101V01 Reliance Group Sarv Samriddhi 121N100V01 Reliance Traditional Group Superannuation Plan 121N092V03 3 AVIVA Life Ins. Co. India Pvt. Ltd. Aviva Corporate Shiled Plus 122N066V03 Annuity Plus 122N018V04 Aviva Nayi Grameen Suraksha-Micro Insurance Product 122N108V01 156ANNUAL REPORT 2014-15 Contd... ANNEXURE 4 LIST OF LIFE INSURANCE PRODUCTS & RIDERS APPROVED BY IRDAI IN YEAR 2014-15 Sl. No Company Name Name of the Product UIN 4 Birla Sun Life Insurance Co. Ltd. BSLI Vision Star 109N096V01 BSLI Guaranteed Future Plan 109N095V01 BSLI Vision Money Back Plus Plan 109N093V01 BSLI Vision Enowment Plus Plan 109N092V01 BSLI Protect @ Ease 109N091V01 BSLI Immediate Annuity Plan 109N083V02 BSLI Future Guard 109N077V02 BSLI Protector Plus Plan 109N071V02 BSLI Group Superannuation Plan 109L097V01 BSLI Empower Pension - SP Plan 109L094V01 BSLI Fortune Elite Plan 109L090V01 5 ICICI Prudential Life ICICI Pru Assured Saving Insurance Plan 105N144V01 Insurance Co. Ltd. ICICI pru Smart Life 105L145V01 6 HDFC Standard Life HDFC Life Sampoorn Samriddhi Plus 101N102V01 Insurance Co. Ltd. HDFC Life Click 2 Protect Plus 101N101V01 HDFC Health Assure Plan 101N087V02 HDFC Life Group Term Insurance 101N005V04 HDFC Life Sampoorn Nivesh 101L103V01 HDFC Life Click 2 Invest - ULIP 101L100V01 HDFC Life Income Benefit on Accidental Disability Rider 101B013V01 7 Exide Life Exide Life Jeevan Uday 114N074V01 Insurance Co. Ltd. Exide Life Assured Gain Plus 114N073V01 Exide Life Term Rider 114B007V02 8 Life Insurance LIC”s Single Premium Group Insurance 512N298V01 Corporation of India LIC's Jeevan Lakshya 512N297V01 LIC's New Children's Money Back Plan 512N296V01 LIC's Jeevan Sangam 512N295V01 LIC's Limited Premium Endowment Plan 512N293V01 LIC's Bhagya Lakshmi 512N292V01 LIC's Jeevan Shagun 512N290V01 LIC's Pradhan Mantri Jan Dhan Yojana(PMJDY) 512G294V01 Varishtha Pension Bima Yojana (VPBY 2014-15) 512G291V01 LIC's New Term Assurance Rider 512B210V01 157ANNUAL REPORT 2014-15 Contd... ANNEXURE 4 LIST OF LIFE INSURANCE PRODUCTS & RIDERS APPROVED BY IRDAI IN YEAR 2014-15 Sl. No Company Name Name of the Product UIN 9 Max Life Max Life Group Super Life Premier 104N088V01 Insurance Co. Ltd. Max Life Super Term Plan 104N086V01 Max Guaranteed Income Plan 104N085V01 Max Life Group Gratuity Premier Plan 104L087V01 Max Life Accidental Death and Dismemberment Rider 104B027V01 Max Life Term Plus Rider 104B026V01 10 PNB Met Life India MetLife Major Illness Premium Back Cover 117N090V01 Insurance Co. Pvt. Ltd. MetLife Bhavishya Plus 117N089V01 MetLife Bachat Yojana 117N088V01 MetLife College Plan 117N087V01 MetLife Family Income Protector Plus 117N086V01 11 Kotak Mahindra OM Kotak Sampoorn Bima Micro-Insurance Plan 107N092V01 Life Insurance Ltd. Kotak Preferred e-Term Plan 107N090V01 Kotak Assured Income Accelerator 107N089V01 Kotak Preferred Term Plan 107N009V06 Kotak Gratuity Plus Group Plan 107L091V01 Kotak Gratuity Group plan - KGGP 107L010V05 12 SBI Life Insurance SBI Life - Smart Money Planner 111N101V01 Co. Ltd. SBI Life - CSC Saral Sanchay 111N099V01 SBI Life - Smart Champ Insurance 111N098V01 SBI Life -Smart Guaranteed Savings Plan 111N097V01 SBI Smart Income Protect 111N085V02 SBI Life - eWealth Insurance 111L100V01 13 TATA AIA Life Tata AIA Life Insurance Smart 7 110N118V01 Insurance Co. Ltd. TATA AIA Life Insurance Insta Wealth Plan 110N117V01 TATA AIA Life Insurance Smart Growth Plus 110N116V01 TATA AIA Life Insurance Navkalyan Yojna - Micro Insurance Product 110N115V01 Tata AIA Wealth Maxima 110L114V01 Tata AIA Fortune Maxima 110L113V01 Tata AIA Fortune Pro 110L112V01 Tata AIA Wealth Pro 110L111V01 TataAIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Linked Rider 110A027V01 Tata AIA Life Insurance Waiver of Premium (Linked) Rider 110A026V01 158ANNUAL REPORT 2014-15 Contd... ANNEXURE 4 LIST OF LIFE INSURANCE PRODUCTS & RIDERS APPROVED BY IRDAI IN YEAR 2014-15 Sl. No Company Name Name of the Product UIN Tata AIA Life Insurance Waiver of Premium Plus(Linked) Rider 110A025V01 14 Sahara India Life Sahara Pay back - Jeevan Bima 127N035V01 Insurance Co. Ltd. Sahara Dhanavriddhi Jeevan Bima 127N034V01 Sahara Shrestha Nivesh Jeevan Bima 127N033V01 Sahara Accidental Death Bebefit Rider 127B005V01 15 Bharti AXA Life Bharti AXA Life Elite Advantage 130N060V01 Insurance Co. Ltd. Bharti AXA Life Samriddhi 130N061V01 Bharti AXA e-Protect+ 130N062V01 16 Shriram Life Shriram Easy Life Cover 128N056V01 Insurance Co. Ltd. Shriram Guaranteed Wealth Preserver 128N055V01 Shriram Life Group Traditional Employee Benefit Plan 128N054V01 Shriram Life Assured Income Plan 128N053V01 Shriram Accidental Death & Disability Income Rider 128A013V01 Shriram Accidental Death & Disability Rider 128A012V01 17 Future Generali Future Generali Assured Money Back Plan 133N056V01 India Life Insurance Future Generali Triple Anand Advantage 133N055V01 Co. Ltd. Future Generali Assured Income Plan 133N054V01 Future Generali Loan Suraksha 133N053V01 Future Generali Care Plus 133N030V02 Future Generali Non Linked Accidental Total & Permanent Disability Rider 133B024V01 Future Generali Non Linked Accidental Death Rider 133B023V01 Future Generali Linked Accidental Total and Permanent Disability Rider 133A026V01 Future Generali Linked Accidental Death Rider 133A025V01 18 IDBI Federal Life IDBI Federal Termsurance Protection Plan 135N040V01 Insurance Co. Ltd. IDBI Federal iSurance Online Term Insurance Plan 135N039V01 IDBI Federal Termsurance Sampoorn Surksha Micro Insurance Plan 135N037V01 IDBI Federal Lifesurance Whole Life Savings Insurance Plan 135N035V01 IDBI Federal Wealthsurance Future Star Insurance Plan 135L038V01 IDBI Federal Wealthsurance Growth Insurance Plan 135L036V01 IDBI Federal Wealthsurance Growth Insurance Plan SP 135L034V01 159ANNUAL REPORT 2014-15 Contd... ANNEXURE 4 LIST OF LIFE INSURANCE PRODUCTS & RIDERS APPROVED BY IRDAI IN YEAR 2014-15 Sl. No Company Name Name of the Product UIN 19 Canara HSBC Canara HSBC Oriental Bank of Commerce Oriental Bank of Life Insurance - "Smart Monthly Income Plan" 136N029V02 Commerce Life Canara HSBC Oriental Bank of Commerce Insurance Insurance Smart LifeLong Plan 136L032V01 Company Ltd. Canara HSBC Oriental Bank of Commerce Insurance Smart Goals Plan 136L031V01 Canara HSBC Oriental Bank of Commerce Insurance Smart One Pay Plan 136L030V01 20 DHFL Pramerica Life Insurance Co. Ltd DHFL Pramerica Premier Gain 140N043V01 DHFL Pramerica Smart Assure 140N042V01 DHFL Pramerica Flexi Cash 140N040V01 DHFL Pramerica Group Term Plan 140N034V02 DHFL Pramerica Smart Wealth+ 140L041V01 DHFL Pramerica Wealth+ Ace 140L025V02 21 AEGON RELIGARE Aegon Religare iSpouse Insurance Plan 138N052V01 Life Insurance Aegon Religare Premier Endowment Insurance Plan 138N051V01 Company Ltd Aegon Religare iReturn Insurance Plan 138N050V01 Aegon Religare iMaximize Single Premium Plan 138L049V01 Aegon Religare iMaximise Plan 138L030V03 Aegon Religare iCI Rider 138B011V01 22 Star Union Dai-ichi SUD Life Group term Insurance Plus 142N046V01 Life Insurance Co Ltd. SUD Life Assured Income Plan 142N045V01 SUD Life Jeevan Ashray 142N044V01 SUD Life Group Accidental Benefit Rider 142B006V01 SUD Life Accidental Death and Total & Permanent Disability Benefit Rider - Traditional 142B005V01 23 India First Life India First Cash Back Plan 143N024V01 insurance Co . Ltd India First CSC Shubhlabh Plan 143N023V01 India First Group Term Plan 143N006V03 24 Edelweiss Tokio Life Edelweiss Tokio Life - Group Employee Benefit 147N029V01 Insurance Co. Ltd. Edelweiss Tokio Life - CritiCare+ 147N030V01 Edelweiss Tokio Life - Cashflow Protection Plus 147N028V01 Edelweiss Tokio Life - My Life+ 147N027V01 Edelweiss Tokio Life - Income Benefit Rider 147B015V01 160ANNUAL REPORT 2014-15 ANNEXURE 5 LIST OF MICRO INSURANCE PRODUCTS IN OPERATION AS AT 31.03.2015 Individual Category Group Category Insurer Name of the Product Name of the Product AVIVA LIFE - Aviva Credit Plus BHARTI AXA LIFE - Bharti AXA Life Jan Suraksha BIRLA SUNLIFE BSLI Bima Kavach Yojana - BSLI Bima Suraksha Super - BSLI Bima Dhan Sanchay - BSLI Grameen Jeevan Raksha - CANARA HSBC OBC LIFE - Canara HSBC Oriental Bank Of Commerce Life Insurance Sampoorna Kavach Plan DHFL PRAMERICA - DHFL Pramerica Sarv Suraksha EDLEWEISS TOKIO Edelweiss Tokio Life - Raksha Kavach Edelweiss Tokio Life Dhan - Nivesh Bima Yojana HDFC STANDARD HDFC SL Sarvgrameen - Bachat Yojana ICICI PRUDENTIAL ICICI Pru Sarva Jana Suraksha - ICICI Pru Anmol Bachat - IDBI FEDERAL - IDBI Federal Group Microsurance Plan KOTAK Sampoorn Bima Micro- - MAHINDRA LIFE Insurance Plan PNB MET LIFE Met Grameen Ashray - SAHARA LIFE Sahara Surakshit Pariwar - Jeevan Bima SBI LIFE SBI Life Grameen Bima SBI Life Grameen Super Suraksha - SBI Life Grameen Shakti SHRIRAM LIFE - Shri sahay SP TATA AIA Tata AIA Life Insurance - Navkalyan Yojana LIC OF INDIA New Jeevan Mangal - Bhagya Lakshmi - * All Micro-Insurance products and products falling within the parameters prescribed under the IRDA (Micro-Insurance) Regulations, 2005, but launched prior to the said Regulations. 161AANNNNUUAALL RREEPPOORRTT 22001144--1155 ANNEXURE 6 NON-LIFE INSURANCE PRODUCTS CLEARED DURING THE FINANCIAL YEAR 2014-15 Sl. No Name of the Insurer Name of the Product 1 Bajaj Allianz General insurance Stand Alone Motor Long term TP for Two Wheeler Company Limited Professional Protect D&O and Company Reimbursement Policy Weather Protect Insurance Policy Crop Insurance Jewellers comprehensive protection policy 2 Cholamandalam MS General Modified National Agriculture Insurance Scheme Insurance Company Limited Project Professional Indemnity Insurance Policy 3 ECGC Limited ECIB-WTPC(Whole turnover packing credit) ECIB-WTPS(Whole turnover post shipment) Shipment Comprehensive Risk (SCR) Policy Export of Services Comprehensive Risk (SRC) Policy Export Receivables (Factor's Risk) Insurance Agreement Multi buyer Exposure Policy (MBEP) for Gems, Jewellery and Diamond (GJD) Exporters 4 Future Generali General Insurance Deterioration of Stock (DOS) Company Limited Stand Alone Motor TP for Two Wheeler- Long Term 5 HDFC ERGO General Stand Alone Motor Long term TP for Two Wheeler Insurance Company limited Business Suraksha Classik - Revision Revision in Pricing of Pvt. Car Package Policy 6 ICICI Lombard General Insurance Stand Alone Motor Long term TP for Two Wheeler Company limited Extended Warranty Extension of Policy Tenure: Comprehensive Insurance (Two Wheeler) “B” Policy & 3 add-ons 7 IFFCO Tokyo General Insurance Stand Alone Motor Long term TP for Two Wheeler Company Limited 8 L& T General Insurance my: Jeevika Livestock insurance Policy Company limited Stand Alone Motor Long term TP for Two Wheeler Revision in Pricing of Pvt. Car Package Policy 9 Liberty Videocon General Insurance Marine STP Company Ltd. Marine DSU Stand Alone Motor Long term TP for Two Wheeler Livestock and Pet Connect Policy E&O Liability Insurance Policy 1612ANNUAL REPORT 2014-15 Contd... ANNEXURE 6 NON-LIFE INSURANCE PRODUCTS CLEARED DURING THE FINANCIAL YEAR 2014-15 Sl. No Name of the Insurer Name of the Product 10 Magma HDI General Insurance Office Package Insurance Policy Company Ltd. Stand Alone Motor Long term TP for Two Wheeler 11 National Insurance Company Limited Stand Alone Motor Long term TP for Two Wheeler 12 New India Assurance Company Limited Stand Alone Motor Long term TP for Two Wheeler Sheep & Goat Sukshma Bima Policy Poultry Sukshma Bima Policy Farmers PackageSukshma Bima Policy Inland fish Sukshma Bima Policy Hut Sukshma Bima Policy Long term motor 2 wheeler package policy & Long term TW Package Policy with EC 13 Oriental Insurance Company Limited Stand Alone Motor Long term TP for Two Wheeler Jewellers block insurance policy 14 Raheja QBE General Insurance Excess Liability Insurance Policy Company Limited 15 Reliance General Insurance Stand Alone Motor Long term TP for Two Wheeler Company Limited Commercial Care Insurance Policy 16 Royal Sundaram General Insurance Commercial General Liability Insurance Policy Company limited Stand Alone Motor Long term TP for Two Wheeler Smart Protect-Revision 17 Shriram General Insurance Stand Alone Motor Long term TP for Two Wheeler company Limited Public Liability (Industrial Risks) Insurance 18 Tata AIG General Insurance Revision in Two Wheeler Pricing Company Limited Modified National Agriculture Insurance Scheme Stand Alone Motor Long term TP for Two Wheeler Single Project Professional Indemnity Insurance Business Guard-All Risk Section Internet Purchase Protection Personal All Risk Policy 19 United India Insurance Stand Alone Motor Long term TP for Two Wheeler Company Limited 20 Universal Sompo General Motor-Liability only Long Term Insurance company Limited 163ANNUAL REPORT 2014-15 ANNEXURE 7 LIST OF HEALTH INSURANCE PRODUCTS APPROVED DURING 2014-15 Sl. No Name of the Insurer Sl. No UIN. Name of the Product I M/s Apollo Munich Health 1 IRDA/NL-HLT/AMHI/P-H/V.II/1/14-15 Optima Restore (Revision) Insurance Co. Ltd II M/s Bajaj Allianz General 2 IRDA/NL-HLT/BAGI/P-T/V.I/37/13-14 Travel Prime Policy Insurance Co. Ltd. 3 IRDA/NL-HLT/BAGI/P-T/V.I/468/13-14 Travel Prime Holiday Policy (Group) 4 IRDA/NL-HLT/BAGI/P-P/V.I/8/14-15 Bajaj Allianz Janata Personal Accident Policy (Group) 5 IRDA/NL-HLT/BAGI/P-P/V.I/16/14-15 Bajaj Allianz Janata Personal Accident Policy (Individual) III M/s Cigna TTK Health 6 IRDA/NL-HLT/CTTK/P-H/V.I/5/14-15 Cigna TTK lifestyle Insurance Co. Ltd. Protection-Critical Care 7 IRDA/NL-HLT/CTTK/P-H/V.I/6/14-15 Cigna TTK Global Health Group Policy 8 IRDA/NL-HLT/CTTK/P-H/V.I/28/14-15 Cigna TTK Lifestyle Protection-Accident Care IV M/s IFFCO-TOKIO General 9 IRDA/NL-HLT/ITGI/P-H/V.I/476/13-14 Health Protector Plus Insurance Co. Ltd. 10 IRDA/NL-HLT/ITGI/P-H/V.I/50/14-15 Group Medishield Insurance Policy 11 IRDA/NL-HLT/ITGI/P-H/V.I/51/14-15 Individual Medishield Insurance Policy 12 IRDA/NL-HLT/ITGI/P-H/V.I/52/14-15 Swasthya Kawach (Family Health) Policy V M/s L&T General 13 IRDA/NL-HLT/L&TGI/P-H/V.II/31/14-15 my:health Medisure Super Insurance Co. Ltd. Top Up Insurance (Revision) VI M/s Liberty Videocon General 14 IRDA/NL-HLT/LVGI/P-H/V.II/61/14-15 Liberty Health Connect Policy Insurance Co. Ltd. (Revision) 15 IRDA/NL-HLT/LVGI/P-P/V.II/09/14-15 Liberty Videocon Group Personal Accident Policy (Revision) VII M/s Max Bupa Health 16 IRDA/NL-HLT/MBHI/P-H/V.II/2/14-15 Health Companion Health Insurance Co. Ltd. Insurance Plan 17 IRDA/NL-HLT/MBHI/P-H/V.I/14/14-15 Swasth Pariwar Health insurance Product VIII M/s National Insurance Co. Ltd. 18 IRDA/NL-HLT/NI/P-H/V.I/463/13-14 National Mediclaim Plus Policy IX M/s Religare Health 19 IRDA/NL-HLT/RHI/P-H/V.I/7/13-14 Joy Insurance Co. Ltd. 20 IRDA/NL-HLT/RHI/P-T/V.II/23/14-15 Explore (Revision) 164ANNUAL REPORT 2014-15 Contd... ANNEXURE 7 LIST OF HEALTH INSURANCE PRODUCTS APPROVED DURING 2014-15 Sl. No Name of the Insurer Sl. No UIN. Name of the Product X M/s Royal Sundaram Alliance 21 IRDA/NL-HLT/RSAI/P-H/V.I/32/14-15 Lifeline Insurance Co. Ltd. XI M/s SBI General 22 IRDA/NL-HLT/SBIGI/P-H/V.I/473/13-14 Arogya Plus Policy Insurance Co. Ltd. 23 IRDA/NL-HLT/SBIGI/P-H/V.I/465/13-14 Arogya Premier Policy 24 IRDA/NL-HLT/SBIGI/P-H/V.I/477/13-14 Arogya Top Up Policy 25 IRDA/NL-HLT/SBIGI/P-H/V.II/114/13-14 Loan Insurance Policy (Revision) XII M/s Star Health and Allied 26 IRDA/NL-HLT/SHAI/P-H/V.I/10/14-15 Star Care Insurance Policy Insurance Co. Ltd. 27 IRDA/NL-HLT/SHAI/P-H/V.II/129/14-15 Family Health Optima Insurance Plan (Revision) XIII M/s Tata AIG General 28 IRDA/NL-HLT/TAGI/P-H/V.I/276/13-14 Group MediPrime Insurance Co. Ltd. 29 IRDA/NL-HLT/TAGI/P-T/V.I/447/13-14 Travel Assure 30 IRDA/NL-HLT/TAGI/P-P/V.I/3/14-15 Janata Personal Accident Policy (Individual) 31 IRDA/NL-HLT/TAGI/P-T/V.III/32/14-15 Travel Guard (Revision) 32 IRDA/NL-HLT/TAGI/P-P/V.I/29/14-15 Janata Personal Accident Policy (Group) 33 IRDA/NL-HLT/TAGI/P-H/V.I/47/14-15 Wellsurance Woman 34 IRDA/NL-HLT/TAGI/P-H/V.I/48/14-15 Wellsurance Family 35 IRDA/NL-HLT/TAGI/P-H/V.I/49/14-15 Wellsurance Senior XIV M/s The New India 36 IRDA/NL-HLT/NIA/P-H/V.I/35/14-15 New India Top-Up Mediclaim Policy Assurance Co. Ltd. 37 IRDA/NL-HLT/NIA/P-P/V.I/55/14-15 Janata Personal Accident Insurance Policy (Individual) 38 IRDA/NL-HLT/NIA/P-P/V.I/56/14-15 Janata Personal Accident Insurance Policy(Group) 39 IRDA/NL-HLT/NIA/P-P/V.I/57/14-15 Gramin Personal Accident Insurance Policy (Individual) 40 IRDA/NL-HLT/NIA/P-P/V.I/58/14-15 Gramin Personal Accident Insurance Policy (Group) XV M/s The Oriental Insurance Co. Ltd. 41 IRDA/NL-HLT/OIC/P-T/V.I/17/14-15 Pravasi Bharatiya Bima Yojana Policy 42 IRDA/NL-HLT/OIC/P-H/V.I/18/14-15 Jan Arogya Bima Policy 43 IRDA/NL-HLT/OIC/P-H/V.I/19/14-15 Thana Janta Sahakari Bank Mediplus Policy 165ANNUAL REPORT 2014-15 Contd... ANNEXURE 7 LIST OF HEALTH INSURANCE PRODUCTS APPROVED DURING 2014-15 Sl. No Name of the Insurer Sl. No UIN. Name of the Product 44 IRDA/NL-HLT/OIC/P-H/V.I/20/14-15 Nagrik Suraksha Individual Policy 45 IRDA/NL-HLT/OIC/P-H/V.I/21/14-15 Nagrik Suraksha Group Policy 46 IRDA/NL-HLT/OIC/P-H/V.I/22/14-15 Student Safety Policy 47 IRDA/NL-HLT/OIC/P-T/V.I/23/14-15 Passenger Flight Insurance Coupon 48 IRDA/NL-HLT/OIC/P-H/V.I/24/14-15 Rashtriya Swasthya Bima Yojana 49 IRDA/NL-HLT/OIC/P-P/V.I/25/14-15 Janta Personal Accident Policy 50 IRDA/NL-HLT/OIC/P-P/V.I/26/14-15 Gramin Accident Policy 51 IRDA/NL-HLT/OIC/P-P/V.I/27/14-15 Bhagyashree Child Welfare Policy 52 IRDA/NL-HLT/OIC/P-H/V.I/38/14-15 Micro Universal Health Insurance Policy 53 IRDA/NL-HLT/OIC/P-H/V.I/39/14-15 Micro Swasthya Bima Policy 54 IRDA/NL-HLT/OIC/P-P/V.I/40/14-15 Micro RajRajeshwari Mahila Kalyan Bima Yojana 55 IRDA/NL-HLT/OIC/P-P/V.I/41/14-15 Janta Personal Accident Micro Insurance Policy 56 IRDA/NL-HLT/OIC/P-P/V.I/42/14-15 Gramin Accident Micro Insurance Policy 57 IRDA/NL-HLT/OIC/P-P/V.I/43/14-15 Bhagyashree Child Welfare Micro Insurance Policy 58 IRDA/NL-HLT/OIC/P-H/V.I/44/14-15 Universal Health Insurance Policy 59 IRDA/NL-HLT/OIC/P-H/V.I/45/14-15 Swasthya Bima Policy 60 IRDA/NL-HLT/OIC/P-P/V.I/46/14-15 Rajrajeshwari Mahila Kalyan Bima Yojana XVI M/s Universal Sompo General 61 IRDA/NL-HLT/USGI/P-H/V.I/30/13-14 Swarna Gramin Bima Yojana Insurance Co. Ltd. (Individual) 62 IRDA/NL-HLT/USGI/P-H/V.I/445/13-14 Surva Vidyarthi Bima Yojana 63 IRDA/NL-HLT/USGI/P-T/V.I/446/13-14 Pravasi Bharatiya Bima Yojana 64 IRDA/NL-HLT/USGI/P-H/V.II/4/14-15 K Bank Health Care Plus 65 IRDA/NL-HLT/USGI/P-H/V.II/4/14-15 Allahabad Bank Health Care Plus 66 IRDA/NL-HLT/USGI/P-H/V.I/15/14-15 Swarna Gramin Bima Yojana (Group) Note: Overseas Travel Insurance Policy (UIN:IRDA/NL/HLT/BAGI/P-T/V.I/423/13-14) of "Bajaj Allianz General Insurance Cl. Ltd" which was shown in list of approved products list of Annual Report 2013-14 has been cancelled during 2014-15. 166ANNUAL REPORT 2014-15 ANNEXURE 8 CIRCULARS/ORDERS/NOTIFICATIONS ISSUED BY THE AUTHORITY FROM APRIL 2014 TO MARCH 2015 Sl. No Date of Ref. No. Subject issue 1 IRDA/LIFE/ORD/MISC/103/04/2014 08/04/2014 Final order in the matter of M/s Reliance Life Insurance Company Limited 2 IRDA/LIFE/CIR/GLD/104/04/2014 09/04/2014 Delegation of policies/reviews by the boards of the Insurers to Board approved Subordinate Committees 3 IRDA/BRK/ORD/REORD/110/04/2014 11/04/2014 Reconsideration of order no IRDA/BRK/ORD/LC/200/10/2013 4 IRDA/NL/CIR/F&U/112/04/2014 17/04/2014 Guidlines on File and Use requirements for General Insurance Product 5 IRDA/BRK/MISC/CIR/114/04/2014 21/04/2014 Circulars to all CEO's of General Insurance Companies and GIC Re 6 IRDA/BRK/MISC/NOT/116/04/2014 25/04/2014 Furnishing of PAN 7 IRDA/BRK/MISC/NOT/117/04/2014 25/04/2014 Brokers On Line Filing of annual returns 8 IRDA/F&A/CIR/ACTS/118/04/2014 28/04/2014 Premium Recognition for variable Insurance Products 9 IRDA/BRK/MISC/CIR/121/05/2014 01/05/2014 Changes in the share holding pattern of a broking entity 10 IRDA/LIFE/GDL/MISC/123/05/2014 05/05/2014 Guidelines on usage of trade Logo of Promoting Partners of Insurance Companies 11 IRDA/BRK/MISC/ORD/125/05/2014 12/05/2014 Order in respect of M/s Gehlot Insurance Broking Private Limited 12 IRDA/NL/GDL/MISC/137/06/2014 10/06/2014 Guidelines on pilot launch of Insurance Repository System 13 IRDA/BRK/MISC/CIR/139/06/2014 16/06/2014 Online examination for Brokers 14 IRDA/F&I/CIR/INV/138/06/2014 16/06/2014 Gideline on Interest rate derivatives 15 IRDA/BRK/ORD/REORD/140/06/2014 17/06/2014 Reconsideration order of the Chairman 16 IRDA/BRK/ORD/REORD/141/06/2014 17/06/2014 Reconsideration order of the Chairman - M/s Allied Insurance Brokers Pvt Ltd 17 IRDA/TPA/MISC/ORD/142/06/2014 17/06/2014 Final order in the matter of M/s MD India Healthcare Services TPA Pvt. Ltd 18 IRDA/BRK/MISC/CIR/143/06/2014 18/06/2014 Furnishing of office addresses 19 IRDA/BRK/MISC/CIR/144/06/2014 18/06/2014 Furnishing of business figures and remuneration 20 IRDA/ACT/CIR/MISC/145/06/2014 23/06/2014 UIN for Social Security/ Government Scheme 21 IRDA/LIFE/ADVT/CIR/146/06/2014 24/06/2014 IRDA notice on spurious calls to be includede in all Insurance Advertisements 22 IRDA/BRK/ORD/REORD/148/06/2014 26/06/2014 Reconsideration order of the Chairman in respect of M/s Deccan Insurance and Reinsurance Brokers Pvt Ltd 23 IRDA/BRK/MISC/CIR/151/06/2014 27/06/2014 Email addresses of Insurance Brokers 24 IRDA/BRK/ORD/REORD/152/07/2014 01/07/2014 M/s Interlink Insurance and Reinsurance Brokers Pvt Ltd 25 IRDA/ACT/CIR/MISC/153/07/2014 03/07/2014 Revision of financial condition report for NL Companies 167ANNUAL REPORT 2014-15 Contd... ANNEXURE 8 CIRCULARS/ORDERS/NOTIFICATIONS ISSUED BY THE AUTHORITY FROM APRIL 2014 TO MARCH 2015 Sl. No Date of Ref. No. Subject issue 26 IRDA/ACT/REG/CIR/158/07/2014 07/07/2014 File and Use Procedure for Group Products and Immediate Annuity Products 27 IRDA/F&I/ORD/EHP/159/07/2014 08/07/2014 Change in Share holding without approval of the Authority 28 IRDA/F&I/ORD/EHP/160/07/2014 08/07/2014 Change in share holding without approval of the Authority -- Shriram General 29 IRDA/NL/ORD/CMT/161/07/2014 09/07/2014 Technical committee for fraud analytical system 30 IRDA/BRK/MISC/ORD/163/07/2014 10/07/2014 Order in respect of M/s IFGL Insurance Broking Private Limited 31 IRDA/F&I/CIR/INV/162/07/2014 10/07/2014 Corporate bond market permission to insurer for membership in SEBI approved stock exchanges for proprietary trading 32 IRDA/AGTS/CIR/LCE/164/07/2014 11/07/2014 New IC-33 Syllabus 33 IRDA/F&A/CIR/GLD/165/07/2014 17/07/2014 Inter Governamental Agreement with USA under FATCA 34 IRDA/LIFE/ORD/MISC/166/07/2014 23/07/2014 Final Order in the matter of Sahara India Life Insurance Company Ltd. 35 IRDA/BRK/ORD/LC/167/07/2014 25/07/2014 Cancellation of Brokers License No. 254 36 IRDA/INSP/ORD/ONS/168/07/2014 25/07/2014 Final order in the matter of M/s United India Insurance Company 37 IRDA/IT/ORD/MISC/186/08/2014 08/08/2014 Technical Committee (New Building) for finalisation of networking related requirement for the new building 38 IRDA/SUR/MISC/ORD/189/08/2014 11/08/2014 Appointment of Election Officer to Conduct 5th, 6th, and 7th Council Elections of Indian Institute of Insurance Surveyors and Loss Assessors (IIISLA) 39 IRDA/BRK/MISC/CIR/190/08/2014 12/08/2014 Sale of Insurance Products through online/telemarketing mode 40 IRDA/BRK/ORD/LC/193/08/2014 12/08/2014 Cancellation of Brokers License No. 372 41 IRDA/BRK/ORD/LC/194/08/2014 12/08/2014 Cancellation of Brokers license no. 409 42 IRDA/NL/CIR/MOTP/192/08/2014 12/08/2014 Long Term Motor Two Wheeler Insurance Policy 43 IRDA/F&A/CIR/GLD/195/08/2014 13/08/2014 Amendment to payment of dues to policy holders and disclosure of unclaimed amount 44 IRDA/F&I/MISC/CIR/196/08/2014 14/08/2014 Onshore Rupee Bonds issued by ADB &IFC 45 IRDA/CAD/PNTC/MISC/197/08/2014 25/08/2014 Cautions public against spurious calls and fictitious offers 46 IRDA/SDD/MISC/ORD/199/08/2014 25/08/2014 Nomination of Members / Alternative Members to variouys International Committees/ Working Groups/ Forums and further action as needed. 47 IRDA/TPA/MISC/ORD/200/08/2014 25/08/2014 Final Order in the matter of M/s E- Meditek (TPA) Services Ltd 168ANNUAL REPORT 2014-15 Contd... ANNEXURE 8 CIRCULARS/ORDERS/NOTIFICATIONS ISSUED BY THE AUTHORITY FROM APRIL 2014 TO MARCH 2015 Sl. No Date of Ref. No. Subject issue 48 IRDA/F&A/ORD/EMT/205/08/2014 26/08/2014 Expenses of Management 49 IRDA/TPA/MISC/ORD/201/08/2014 26/08/2014 Final Order in the matter of M/s Medicare TPA Services (I) Pvt Ltd 50 IRDA/CAD/MISC/PRE/206/08/2014 28/08/2014 Spurious phone calls and fictitious/ Fraudulent offers - With Audio 51 IRDA/TPA/MISC/ORD/207/09/2014 01/09/2014 In the matter of M/s E-Meditek (TPA) Services Ltd. 52 IRDA/BRK/MISC/CIR/208/09/2014 03/09/2014 All PRINCIPAL OFFFICERS OF REINSURANCE / COMPOSITE BROKERS 53 IRDA/BRK/MISC/CIR/209/09/2014 03/09/2014 All CEO's of General Insurance and Reinsurance Companies 54 IRDA/TPA/MISC/ORD/211/09/2014 09/09/2014 Final order in the matter of Paramount Health Services (TPA) Pvt Ltd 55 IRDA/F&I/CIR/INV/213/09/2014 12/09/2014 ISSUE OF LOMG TERM BONDS BY BANKS - FINANCING OF INFRASTRUCTURE AND AFFORDABLE HOUSING 56 IRDA/INSP/ORD/ONS/215/09/2014 16/09/2014 Final order in the matter of M/s Apoorva Insurance Brokers Pvt Ltd 57 IRDA/INSP/ORD/ONS/216/09/2014 17/09/2014 Final order in the matter of M/s Aegon Religare Life Insurance Company 58 IRDA/NL/ORD/MISC/217/09/2014 17/09/2014 Special despensation to insurer under sec 64 um(2) of the insurance act 1938 59 IRDA/BRK/ORD/LC/218/09/2014 18/09/2014 Cancellation of Brokers license No.468 60 IRDA/BRK/ORD/LC/219/09/2014 25/09/2014 In the matter of M/s Athena Insurance & Reinsurance Brokers Pvt. Ltd. composite Broker Licence No. 171 61 IRDA/DIST/CIR/MISC/224/10/2014 08/10/2014 Submission of Periodical Returns through BAP 62 IRDA/F&A/ORD/CG/225/10/2014 15/10/2014 Working Group on Harmonizing IRDA Corporate Goveranance Guidelines and Disclosure with Companies Act,2013 63 IRDA/BRK/MISC/CIR/227/10/2014 17/10/2014 Insurance Brokers New Business data 64 IRDA/IT/CIR/MISC/226/10/2014 17/10/2014 Setting up ofa Central database of all important Communications issued to the registered entities - regarding 65 IRDA/SDD/MISC/CIR/228/10/2014 17/10/2014 Submission of Life Insurance Data to IIB 66 IRDA/I & C/MISC/ORD/229/10/2014 20/10/2014 Order in the matter of ICICI Lambard General Insurance Copany 67 IRDA/BRK/MISC/CIR/232/10/2014 21/10/2014 "Filing of returns through Business Analytics Project (BAP) - Brokers Module " 169ANNUAL REPORT 2014-15 Contd... ANNEXURE 8 CIRCULARS/ORDERS/NOTIFICATIONS ISSUED BY THE AUTHORITY FROM APRIL 2014 TO MARCH 2015 Sl. No Date of Ref. No. Subject issue 68 IRDA/CAD/PR/PRE/233/10/2014 22/10/2014 Insurance Awareness Campaign to educate the general public against spurious calls 69 IRDA/BRK/ORD/LC/237/10/2014 29/10/2014 Cancellation of Brokers License no . 426 70 IRDA/F&A/CIR/DATA/239/10/2014 30/10/2014 Submission of returns for F&A Life through the BAP Madule 71 IRDA/BRK/MISC/CIR/240/10/2014 31/10/2014 Appointment of Auditors by the Insurance Brokers 72 IRDA/BRK/MISC/CIR/241/10/2014 31/10/2014 Calculation of Net Worth 73 IRDA/LIFE/ORD/MIN/242/11/2014 03/11/2014 Final Orders in the matter of M/s Sahara India Life Insurance Company Ltd 74 IRDA/LIFE/ORD/MISC/243/11/2014 03/11/2014 Final order in the matter of M/s AVIVA Life Insurance Comp. Ltd 75 IRDA/BRK/ORD/LC/244/11/2014 10/11/2014 Order in the matter of M/s True Rose Insurance Brokers Ltd 76 IRDA/BRK/ORD/LC/245/11/2014 11/11/2014 Cancellation of License No: 422 77 IRDA/BRK/MISC/ORD/247/11/2014 12/11/2014 Order in the matter of M/s ISHAN INSURANCE BROKING PRIVATE LIMITED 78 IRDA/NL/ORD/MISC/246/11/2014 12/11/2014 Further guidelines on pricing of Risk 79 IRDA/BRK/ORD/LC/248/11/2014 19/11/2014 Final order in respect of Ms Athena Insurance & Re Insurance Broker Pvt. Ltd 80 IRDA/F&I/CIR/INV/250/11/2014 26/11/2014 Investments in M/s India Indradbt Ltd idf - NBFC 81 IRDA/NL/ORD/MPL/251/11/2014 27/11/2014 Declaration of Ultimate Loss Ratio (ULR) for the Indian Motor third party Declined Risk Insurance Pool (DR POOL) for the year 2013-14 82 IRDA/NL/CIR/MISC/266/11/2014 28/11/2014 Standard product of general Insurance for Distribution through CSC qualified persons 83 IRDA/LIFE/ORD/MISC/267/12/2014 02/12/2014 Final Order in the matter of M/s Future Generali India Life Insurance Company Ltd 84 IRDA/LIFE/ORD/MISC/268/12/2014 02/12/2014 Final Order in the matter of M/s Birla Sun Life Insurance Company Ltd 85 IRDA/SUR/NTC/MISC/269/12/2014 03/12/2014 Online system for Licensing and renewal 86 IRDA/I & C/ORD/ONS/274/12/2014 12/12/2014 CANARA HSBC OBC LIFE INSURANCE COMP 87 IRDA/I & C/ORD/ONS/275/12/2014 17/12/2014 Order in the matter of M/s Anand Rathi Insurance Brokers Ltd 88 IRDA/BRK/MISC/CIR/276/12/2014 18/12/2014 Filing of returns through BAP - Insurance Brokers 89 IRDA/LIFE/ORD/MISC/277/12/2014 18/12/2014 Final Order in the matter of M/s Max Life Insurance Company Limited 90 IRDA/NL/ORD/MISC/278/12/2014 22/12/2014 Further Guideline on Pricing of Risk 91 IRDA/TPA/MISC/ORD/279/12/2014 22/12/2014 Order oin the matteer of M/s Safeway TPA Services Pvt Ltd 92 IRDA/ACT/ORD/MISC/280/12/2014 23/12/2014 Constitution of working Group 170ANNUAL REPORT 2014-15 Contd... ANNEXURE 8 CIRCULARS/ORDERS/NOTIFICATIONS ISSUED BY THE AUTHORITY FROM APRIL 2014 TO MARCH 2015 Sl. No Date of Ref. No. Subject issue 93 IRDA/IT/NTC/TNDR/281/12/2014 24/12/2014 RFP for .Net Professional for the maintenance of IRDA software applications 94 IRDA/BRK/ORD/LC/283/12/2014 29/12/2014 Cancellation of Broker License No; 408 95 IRDA/HLT/MISC/ORD/284/12/2014 29/12/2014 Constitution of Expert Committee to examine Health Insurance Framework 96 IRDA/LIFE/CIR/GLD/285/12/2014 29/12/2014 Guidelines on Claim processing for Group Life Insurance Policies 97 IRDA/I & C/ORD/ONS/286/12/2014 30/12/2014 Order in the matter of M/s Family Health Plan TPA Ltd 98 IRDA/F&A/CIR/GLD/287/12/2014 31/12/2014 IGA with USA under FATCA 99 IRDA/BRK/MISC/NOT/001/01/2015 05/01/2015 Brokers BAP Training (West Zone) 100 IRDA/NL/CIR/MISC/005/01/2015 13/01/2015 Submission opf returns (NL) - BAP 101 IRDA/NL/CIR/ADV/006/01/2015 13/01/2015 Submission of Advertisement -- Through BAP 102 IRDA/HLT/ADVT/CIR/017/01/2015 21/01/2015 Submission of Advt application through BAP 103 IRDA/ENF/ORD/ONS/019/01/2015 23/01/2015 Order in the Name of M/S Acme Insurance Broking Services Pvt Ltd 104 IRDA/CW/ORD/MISC/021/01/2015 28/01/2015 Committee for formulating and finalizing communication policy of IRDA 105 IRDA/BRK/ORD/LC/023/01/2015 29/01/2015 Cancellation of Brokers License No: 280 106 IRDA/BRK/ORD/REORD/024/01/2015 29/01/2015 M/s PRMAN 107 IRDA/F&I/MISC/CIR/026/02/2015 05/02/2015 Submission of returns for F & A Non-life through the Business Analytics Project (BAP) Module 108 IRDA/ENF/ORD/ONS/027/02/2015 06/02/2015 Order in the matter of Lambach Insurance Brokers Private limited 109 IRDA/CW/PR/MISC/028/02/2015 09/02/2015 email spoofing using domain irda.gov.org 110 IRDA/ENF/ORD/ONS/029/02/2015 10/02/2015 Final Order -- LIC of India 111 IRDA/HLT/REG/CIR/030/02/2015 11/02/2015 Compliance with Regulations 12 (d) of the IRDA( Health Insurance) Regulations,2013 112 IRDA/NL/CIR/MISC/031/02/2015 11/02/2015 Submisssion of returns - NL- BAP 113 IRDA/BRK/ORD/REORD/032/02/2015 12/02/2015 Order in the matter of M/s ICM Insurance Brokers Pvt Ltd 114 IRDA/ENF/ORD/ONS/033/02/2015 16/02/2015 Order in the matter of M/s sushil Insurance Brokers Pvt. Ltd. 115 IRDA/F&I/CIR/INV/034/02/2015 16/02/2015 Transitory Investement Provisions - the Insurance Laws (Amendment) Ordinance, 2014 116 IRDA/CAD/ORD/MISC/035/02/2015 19/02/2015 Celebration of Insurance Awareness Day 2015 171ANNUAL REPORT 2014-15 ANNEXURE 9 REGULATIONS FRAMED UNDER THE IRDA ACT, 1999 UP TO 31/03/2015# Sl. No Name of the Notification 1 IRDA (The Insurance Advisory Committee) (Meeting) Regulations, 2000 2 IRDA (Appointed Actuary) Regulations, 2000 3 IRDA (Actuarial Report and Abstract) Regulations,2000 4 IRDA (Licensing of Insurance Agents) Regulations, 2000 5 IRDA (Assets, Liabilities and Solvency Margin of Insurers) Regulations,2000 6 IRDA (General Insurance-Reinsurance) Regulations,2000 7 IRDA (Registration of Indian Insurance Companies) Regulations,2000 8 IRDA (Insurance Advertisements and Disclosure) Regulations,2000 9 IRDA (Obligations of Insurers to Rural Social Sectors) Regulations,2000 10 IRDA (Meetings) Regulations,2000 11 IRDA (Preparation of Financial Statements and Auditors' Report of Insurance Companies) Regulations, 2000 12 IRDA (Investment) Regulations,2000 13 IRDA (Conditions of service of Officers and other Employees) Regulations,2000 14 IRDA (Insurance Surveyors and Loss Assessors-Licensing, Professional Requirements and Code of Conduct) Regulations,2000 15 IRDA (Life Insurance - Reinsurance) Regulations,2000 16 IRDA ( Investment) (Amendment) Regulations, 2001 17 IRDA (Third Party Administrators-Health Services) Regulations, 2001 18 IRDA ( Re-Insurance Advisory Committee) Regulations,2001 19 IRDA (Investments) (Amendment) Regulations, 2002 20 IRDA (Preparation of Financial Statements and Auditors' Report of Insurance Companies) Regulations, 2002 21 IRDA (Protection of Policyholders' Interests) Regulations,2002 22 IRDA (Insurance Brokers) Regulations,2002 23 IRDA (Obligations of Insurers to Rural Social Sectors) Regulations,2002 24 IRDA (Licensing of Corporate Agents) Regulations,2002 25 IRDA (Licensing of Insurance Agents) (Amendment) Regulations,2002 26 IRDA (Protection of Policyholders' Interests) (Amendment) Regulations,2002 27 IRDA (Manner of Receipt of Premium) Regulations,2002 172ANNUAL REPORT 2014-15 Contd... ANNEXURE 9 REGULATIONS FRAMED UNDER THE IRDA ACT, 1999 UP TO 31/03/2015# Sl. No Name of the Notification 28 IRDA (Distributions of Surplus) Regulations,2002 29 IRDA (Registration of Indian Insurance Companies) (Amendment) Regulations,2003 30 IRDA(Investment)(Amendment)Regulations,2004 31 IRDA (Qualification actuary) Regulations,2004 32 IRDA (Obligations of Insurers to Rural / Social Sectors) (Amendment) Regulations, 2004 33 IRDA (Micro Insurance) Regulations,2005 34 IRDA (Conditions of Service of Officers and other Employees)(Amendment) Regulations,2005 35 IRDA (Obligation of Insurers to Rural or Social Sectors) (Amendment) Regulations,2005 36 IRDA(Licensing of Insurance Agents)(Amendment) Regulations, 2007 37 IRDA (Licensing of Corporate Agents) (Amendment) Regulations, 2007 38 IRDA (Insurance Brokers) (Amendment) Regulations, 2007 39 IRDA (Obligation of Insurers to Rural or Social Sectors) (Third Amendment) Regulations,2008 40 IRDA (Obligation of Insurers to Rural or Social Sectors) (Fourth Amendment) Regulations,2008 41 IRDA (Registration of Indian Insurance Companies) (Second Amendment) Regulations,2008 42 IRDA (Conditions of service of Officers and other Employees) (Amendments) Regulations,2008 43 IRDA(Investment) (Fourth Amendment) Regulations,2008 44 IRDA (Sharing of Database for Distribution of Insurance Products) Regulations,2010 45 IRDA (Treatment of Discontinued Linked Insurance Policies) Regulations,2010 46 IRDA (Insurance Advertisements and Disclosure) (Amendment) Regulations, 2010 47 IRDA (Licensing of Corporate Agents) (Amendment) Regulations, 2010 48 IRDA (Scheme of Amalgamation and Transfer of General Insurance Business) 2011 49 IRDA (Issuance of Capital by Life Insurance Companies) Regulations, 2011 50 IRDA (Registration of Indian Insurance Companies) (Third Amendment) Regulations,2012 51 IRDA (Insurance Advisory Committee ( Meetings) ( First Amendment) Regulations. 2012 52 IRDA (Sharing of confidential information concerning domestic or foreign entity) Regulations, 2012 53 IRDA (Registration of Indian Insurance Companies) (Fourth Amendment) Regulations, 2013 54 IRDA (Appointed Actuary) (First Amendment) Regulations, 2013 55 IRDA (General Insurance - Reinsurance ) Regulations, 2013 173ANNUAL REPORT 2014-15 Contd... ANNEXURE 9 REGULATIONS FRAMED UNDER THE IRDA ACT, 1999 UP TO 31/03/2015# Sl. No Name of the Notification 56 IRDA (Insurance Brokers) (Second Amendment) Regulations, 2013 57 IRDA (Scheme of Amalgamation and Transfer of Life Insurance Business) Regulations, 2013 58 IRDA (Third Party Administartor-Health Services) (First Amendment) Regulations, 2013 59 IRDA (Standard Proposal Form for Life Insurance) Regulations, 2013 60 IRDA (Places of Business) Regulations, 2013 61 IRDA (Issuance of Capital by General Insurance Companies) Regulations, 2013 62 IRDA (Non-linked Insurance Products) Regulations, 2013 63 IRDA (Health Insurance) Regulations, 2013 64 IRDA (Linked Insurance Products) Regulations, 2013 65 IRDA (Investment) (Fifth Amendment) Regulations, 2013 66 IRDA (Life Insurance - Reinsurance) Regulations, 2013 67 IRDA (Insurance Surveyors and Loss Assessors - Licensing, Professional requirements and code of conduct) (Amendment) Regulations,2013 68 IRDA (Licensing of Banks as Insurance Brokers) Regulations, 2013 69 IRDA (Web aggregators) Regulations,2013 70 IRDA (Meetings) (First Amendment) Regulations, 2013 71 IRDA IAC (Mettings) (Second Amendment) Regulations, 2013 72 IRDA (Insurance Brokers) Regulations, 2013 73 IRDA (TPA-Health Services) (Second Amendment) Regulations, 2013 74 IRDA (Registration of Indian Insurance Companies)(Fifth Amendment) Regulations, 2013 75 IRDA (Licencing of Insurance Agents) (Amendment) Regulations 2013 76 IRDA(Insurance Surveyors and Loss Assessors- Licensing, Professional requirements and code of conduct) (Second Amendment) Regulations,2013 77 IRDA (Conditions of Service of Officers and Other Employees) (Third Amendment) Regulations, 2014 78 IRDA (Registration of Indian Insurance Companies) (Sixth Amendment) Regulations, 2014 79 IRDA (Health Insurance) (First Amendment) Regulations, 2014 80 IRDAI (Registration of Insurance Marketing Firm) Regulations, 2014 81 IRDAI (Micro Insurance) Regulations, 2015 # Notified in the official Gazette 174ANNUAL REPORT 2014-15 ANNEXURE 10 PENALTIES LEVIED BY THE AUTHORITY DURING FY 2014-15 Date of Name of the Amount of Sl.No issuance of Brief particulars of the violation committed Entity Penalty (in `) penalty order 1 Reliance Life 17,700,000 11/04/2014 Violation of provisions of Circular Ref. IRDA/Cir/ 004/ Insurance Co Ltd 2003 dated 14/02/2003, IRDA (Sharing of Database for Distribution of Insurance Products) Regulations, 2010, Clause C- 4 & 7 of IRDA guidelines on Group Insurance issued vide circular no.015/IRDA/Life/Circular/GI Guidelines/2005 dated 14-07-2005 and Section.42(7) of IA, 1938. 2 MB India Health 500,000 17/06/2014 Violation of Reg 21(2)(n), 25(3), 11(1) & 21(1) of IRDA Care TPA (TPA-Health Services) Regulations, 2001. 3 Shriram Life 500,000 11/07/2014 Violation of circular no.IRDA/F&A/Cir/DRSH/ Insurance 183/08/2011 dated 11-08-2011, cir.no.IRDA/F&A/ 064/Jan/05 dated 12-01-2015, cir.no.IRDA/Cir/F& A/073/Feb-05 dated 22-02-2015 and cir.no.IRDA/F&I/ Cir/100/06/2010 dated 16-06-2010 4 Shriram General 500,000 11/07/2014 Violation of circular no.IRDA/F&A/Cir/DRSH/183 Ins.Co.Ltd /08/2011 dated 11-08-2011, cir.no.IRDA/F&A/064/ Jan/05 dated 12-01-2015, cir.no.IRDA/Cir/F&A/073/ Feb-05 dated 22-02-2015 and cir.no.IRDA/F&I/Cir/100/ 06/2010 dated 16-06-2010 5 Sahara India Life 500,000 23/07/2014 Non fulfillment of obligations towards Social sector as Insurance specified in the IRDA (Obligations of insurers towards Rural or Social Sectors) Regulations, 2002. 6 United India d 500,000 28/07/2014 Violation of Regulation 7(n) & 4( 1 & 4) of IRDA (Prote- Insurance Co Lt ction of Policyholders' Interests) Regulations, 2002. 7 M/s E Meditek 500,000 25/08/2014 Violation of Reg 21(2)(n), 3 of IRDA (TPA-Health Serv- TPA services ices) Regulations, 2001. 8 M/s Medicare 500,000 26/08/2014 Violation of Regulation 5, 7, 2(d & e), 21(1) & 25(3) of TPA Services IRDA (TPA-Health Services) Regulations, 2001. 9 M/s E Meditek 500,000 01/09/2014 Violation of Regulation 21(1) read with 25(3) of IRDA TPA services (TPA-Health Services) Regulations, 2001. 10 Aegon Religare Life 4,000,000 17/09/2014 Violation of Section 42(7) of Insurance Act, 1938, ciruclar ref.no.IRDA/Cir/010/2003 dated 27-02-2003, clause 8.4 of Outsourcing lguidelines dated 01-02-2011, clause of Corporate Agency guidelines dated 14-07-2005 and Regulation 19 of IRDA (Insurance Brokers) Regulations, 2002. 11 ICICI Lombard 5,000,000 17/10/2014 Violaiton of F&U guidelines, Section 42(7) of Insurance General Ins.Co.Ltd Act,1938, Circular ref.no.IRDA/Cir/010/2003 dated 27/03/2003 12 Aviva Life 500,000 03/11/2014 Violation of Regulation 3 of IRDA (Protection of Policy- Insuance holders'Interests) Regulations, 2002 13 Sahara India Life 2,500,000 03/11/2014 Non fulfillment of obligations towards Social sector as Insurance specified at provision 3(B)(1)(b)(i)(III) of the IRDA (Obligations of insurers towards Rural or Social Sectors) Regulations, 2002. 175ANNUAL REPORT 2014-15 Contd... ANNEXURE 10 PENALTIES LEVIED BY THE AUTHORITY DURING FY 2014-15 Date of Name of the Amount of Sl.No issuance of Brief particulars of the violation committed Entity Penalty (in `) penalty order 14 Birla Sun Life 1,500,000 01/12/2014 Violation of Regulation 4 of IRDA (Micro Insurance) Insurance Regulations, 2005 and Regulation 8 ( 2 & 3) of IRDA (Protection of Policyholders'Interests) Regulations, 2002 15 Canara HSBC 3,100,000 12/12/2014 For making payments to Insurance Agents in violation of OBC Life clause 21 of the Corporate Agents guidelines circular ref.no.017/IRDA/Cir/CA guidelines/2005 dated 14-07- 2005 read with Section.40A of Insurance Act,1938. 16 M/s Anand Rathi 500,000 16/12/2014 Regulation 10(1) and 21 of IRDA (Insurance Brokers) Insurance Regulations, 2002. Brokers Ltd 17 Max Life 5,500,000 18/12/2014 Violation of clause 9.6(ii) of Outsourcing guidelines Insurance Co circular dated 01-02-2011. 18 Safeway 500,000 22/12/2014 Violation of Regulation 24(2), 25 (1) & 3(2) of IRDA (TPA- TPA Services Health Services) Regulations, 2001. 19 Acme Insurance 700,000 23/01/2015 Violation of Regulation 9(2)(b), 34(1)(c) and point 3(b) Broker under Regulation 21 of IRDA (Insurance Brokers) Regulations, 2002. 20 Family health TPA 2,500,000 29/01/2015 Violation of Regulation 3(2) of IRDA (TPA-Health Services) Regulations, 2001. 21 Lambach s Ltd 1,520,000 06/02/2015 Violation of Regulation 9(2)(H), 18, 20, 10(1)(iv), 3(b) Insurance Broker under 21 and 28(1)(ii) of IRDA (Insurance Brokers) Regulations, 2002. 22 LIC of India 1,000,000 12/02/2015 Violation of Regulation 3(2) of IRDA (Protection of Policyholders'Interests) Regulations, 2002, Section.27A(4) of IA,1938 and Regulation 5 of Investment Regulations, 2000. 23 Agriculture 1,000,000 19/03/2015 Violation of circular no.011/IRDA/Brok-com/Aug-08 Insurance dated 25-08-2008, Regulation 19(1) of IRDA (Insurance Company of Brokers) Regulations, 2002 and Provission 3(2) of IRDA India Ltd (Proteciton of Policyholders' Interests) Regulations, 2002. 24 Apollo Munich 2,000,000 19/03/2015 Violation of Section 42(D)(8), 40(1) & 64VB of Insurance Health Act, 1938 and circular ref.no.IRDA/Cir/010/2003 dated 27/03/2003. 25 Janta Sahkari 1,000,000 31/03/2015 Violation of Section 40(A) of Insurance Act, 1938, Clause Bank - Corporage 21 of Corporate agents guidelines circular Agent refe.no.017/IRDA/Cir/CA guidelines/2005 dated 14-07 2005 and Cir.no.011/IRDA/Brok-comm/Aug-08 dated 25-08-2008. 176