**Executive Summary**
This notification from the Insurance Regulatory and Development Authority of India (IRDAI) addresses the Arbitration clause in insurance policies. It de-notifies the Arbitration clause in all tariff products under Fire, Motor, Engineering, Workmen's Compensation and other classes of insurance business, effective October 27, 2023. This action follows the withdrawal of tariffs and aims to revise regulations related to insurance risk contracts.
**Key Points / Main Content**
* **Arbitration Clause De-notification:** The Arbitration clause in all tariff products under Fire, Motor, Engineering, Workmen's Compensation and other classes of insurance business is de-notified, effective October 27, 2023.
* **Background:** In 2006, following the withdrawal of tariffs by the Tariff Advisory Committee, the IRDAI notified that tariff general regulations (excluding those relating to rating) would continue to be followed until further orders.
* **De-notification Scope:** The Arbitration clause related provisions in the tariff general regulations, terms, conditions, clauses, warranties, policy, add-ons, endorsement wordings, and proposal form applicable to risks of insurance business governed by the erstwhile Tariffs stand de-notified with effect from 27th October, 2023.
* **Insurance Risks Contracts:** Insurance risk contracts mentioned provision regarding Arbitration clause shall be subject to the circular issued in this regard by the Authority and amended from time to time.
**Impact Analysis**
**Insurers**
* **Impact:** Insurers must cease to include the Arbitration clause in new tariff-based insurance policies, as per de-notification, from October 27, 2023. Insurance risks contracts mentioned provision regarding Arbitration clause shall be subject to the circular issued in this regard by the Authority and amended from time to time.
* **Action Required:** Adjust policy wordings and practices to comply with the de-notification, ensuring adherence to subsequent circulars issued by the IRDAI on this matter.
**Policyholders**
* **Impact:** Policyholders should be aware that Arbitration clause is no longer a standard provision in tariff-based insurance contracts issued after October 27, 2023. Insurance risks contracts mentioned provision regarding Arbitration clause shall be subject to the circular issued in this regard by the Authority and amended from time to time.
* **Action Required:** Understand the implications of this change on dispute resolution mechanisms for their insurance policies and stay informed about alternative procedures outlined by IRDAI.
**Insurance Regulatory and Development Authority of India (IRDAI)**
* **Impact:** Regulatory oversight and responsibility for issuing amended circulars relating to arbitration clause.
* **Action Required:** Issue circulars regarding amended clauses.
Key Entities Referenced
Insurance Act, 1938: The primary legislation governing insurance in India, specifically Section 64 ULA regarding tariff regulations and powers of the Authority.
Insurance Regulatory and Development Authority of India (IRDAI): The regulator of the insurance sector in India, responsible for issuing notifications and exercising powers under the Insurance Act and the IRDA Act.
IRDA Act, 1999: The Act that established the Insurance Regulatory and Development Authority of India and defines its powers.
Tariff Advisory Committee: The committee which previously recommended the withdrawal of tariffs which led to changes implemented by IRDAI.
Arbitration clause: The specific clause related to dispute resolution within insurance contracts that is being de-notified in the notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-टी.एल.-अ.-23012024-251560
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CG-TL-E-23012024-251560
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 53] िई ददल्ली, मगं लिार, िििरी 23, 2024/माघ 3, 1945
No. 53] NEW DELHI, TUESDAY, JANUARY 23, 2024/MAGHA 3, 1945
भारतीय बीमा जिजियामक और जिकास प्राजधकरण
अजधसचू िा
हदै राबाद, 22 िििरी, 2024
फा. स.ंभाबीजिजिप्रा/ साधारण बीमा/प्रिल्ु क /1/195/2024.– बीमा अजधजियम, 1938 की धारा 64 यूएलए की
उप-धारा (1) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, प्राजधकरण इसके द्वारा अजि, मोटर और इंिीजियररंग, कामगार
प्रजतकर और बीमा व्यिसाय के अन्य िगों के अंतगगत सभी प्रिुल्क उत्पादों म ें जििाचि खंड की अजधसूचिा को
जिरस्ट्त करता ह।ै
1. िर्ग 2006 म,ें प्रिुल्क सलाहकार सजमजत द्वारा प्रिुल्कों के प्रत्याहरण के अिुसरण म,ें भारतीय बीमा जिजियामक और
जिकास प्राजधकरण (“प्राजधकरण”) आईआरडीए अजधजियम, 1999 की धारा 14 की उप-धारा (2) के खंड (i) के
अंतगतग अपिे म ें जिजहत िजियों का प्रयोग करत े हुए, अजधसूचिा संदभग 034/आईआरडीए/डी-टैररफ/ददसंबर-06
ददिांक 4 ददसंबर 2006 िारी की, जिसम ें यह अजधसूजचत दकया गया दक व्यिसाय के कुछ िगों िैसे अजि,
इंिीजियररंग, मोटर, कामगार प्रजतकर तथा बीमाओं के अन्य िगों के जलए लाग ू प्रिल्ु क (टैररफ) संबंधी सामान्य
जिजियम (रेरटंग स े संबंजधत को छोड़कर अन्य), ित,ें जिबंधि, खंड, िारंरटयााँ, पाजलसी और पृष्ांकि िब्दािली/
िाक्यरचिा िो उस समय प्रिुल्कों के अधीि थीं, का पालि करिा अगल ेआदेिों तक िारी रहगे ा।
2. अब बीमा अजधजियम, 1938 की धारा 64 यूएलए की उप-धारा (1) के अंतगगत प्राजधकरण के पास जिजहत िजियों
के आधार पर प्राजधकरण इसके द्वारा अजधसूजचत करता ह ै दक पूिग के प्रिल्ु कों के द्वारा जियंजित बीमा व्यिसाय के
िोजखमों के जलए लागू प्रिल्ु क संबंधी सामान्य जिजियमों, ितों, जिबंधिों, खंडों, िारंरटयों, पाजलसी, ऐड-आिों,
504 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
पृष्ांकि संबंधी िब्दािली/िाक्यरचिा और प्रस्ट्ताि फाम ग म ें जििाचि खंड संबंधी उपबंधों की अजधसूचिा 27 अिूबर
2023 स े प्रभािी रूप में जिरस्ट्त की गई ह।ै
3. तदिुसार, इसके द्वारा यह अजधसूजचत दकया िाता ह ै दक 27 अिूबर 2023 से जििाचि खंड के संबंध म ें बीमा
िोजखम संजिदाओं के उल्लेख स े युि उपबंध प्राजधकरण द्वारा इस संबंध म ें िारी दकय े गय े समय-समय पर
यथासंिोजधत पररपि के अधीि होगा।
देबािीर् पण्डा, अध्यक्ष
[जिज्ञापि-III/4/असा./707/2023-24]
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, 22nd January, 2024
F. No. IRDAI/Gen Insurance/Tariff/1/195/2024.—In exercise of the powers conferred by sub section (1) of
section 64 ULA of the Insurance Act, 1938, the Authority hereby de-notifies the Arbitration clause in all tariff
products under Fire, Motor and Engineering, Workmen’s Compensation and other classes of insurance business.
1. In the year 2006, pursuant to the withdrawal of tariffs by the Tariff Advisory Committee, the Insurance
Regulatory and Development Authority of India (“Authority”) in exercise of powers vested in it under clause (i)
of sub section (2) of Section 14 of the IRDA Act, 1999, issued notification Ref.034/IRDA/De-Tariff/Dec-06
dated 4th December, 2006, wherein it was notified that the tariff general regulations (other than those relating to
rating), terms, conditions, clauses, warranties, policy and endorsement wordings applicable to certain classes of
business such as Fire, Engineering, Motor, Workmen’s Compensation and other classes of insurances which were
then under tariffs shall continue to be followed until further orders.
2. Now, by virtue of powers vested with the Authority under sub section (1) of Section 64 ULA of the Insurance
Act,1938 the Authority hereby notifies that the Arbitration clause related provisions in the tariff general
regulations, terms, conditions, clauses, warranties, policy, add-ons, endorsement wordings and proposal form
applicable to the risks of insurance business governed by the erstwhile Tariffs stand de-notified with effect from
27th October, 2023.
3. Accordingly, it is hereby notified that with effect from 27th October, 2023, insurance risks contracts mentioned
provision regarding Arbitration clause shall be subject to the circular issued in this regard by the Authority and
amended from time to time.
DEBASISH PANDA, Chairperson
[ADVT.-III/4/Exty./707/2023-24]
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.