Home› India› Insurance Regulatory And Development Authority› In exercise of powers conferred under clause (c) of sub clau...
Date: 03-Jan-2025 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred under clause (c) of sub clause (1) of section 14, section 33 (7) and clause (ga), (j) of sub section (2) of section114 A of the Insurance Act, 1938 (4 of 1938) read with section 14 and 26 of Insurance Regulatory and Development Authority

Issued by Insurance Regulatory And Development Authority · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The gazette notification introduces the Insurance Regulatory and Development Authority of India (Maintenance of Information by the Regulated Entities and Sharing of Information by the Authority) Regulations, 2025.
  • These regulations aim to establish a framework for the maintenance of data by insurance companies and intermediaries, and for the sharing of information by the Authority.
  • The regulations focus on enabling insurers to maintain data electronically, ensuring data security, and adopting a data governance framework.
  • They also aim to empower the Authority to share information judiciously, considering confidentiality, consent, and the rights of stakeholders.

Key Changes

  • The regulations mandate that insurers maintain records of all policies issued and claims made in electronic form, regardless of any other form of maintenance.
  • All records pertaining to policies issued and claims made in India must be held in data centers located and maintained within India.
  • Insurers are required to have a Board-approved policy for the maintenance and storage of records, including a plan for implementation and review at least annually.
  • The regulations specify minimum information requirements for insurers, intermediaries, and insurance intermediaries for investigation and inspection purposes. These are detailed in Schedule I and II respectively.
  • Insurers and intermediaries must maintain records of proposals, cover notes, policies, premiums, endorsements, bank guarantees, claims, and various financial transactions.
  • The regulations also cover the maintenance of records related to agents, employees, investments, outsourcing agreements, and other relevant business activities.
  • The notification repeals the Insurance Regulatory and Development Authority of India (Minimum Information Required for Investigation and Inspection) Regulations, 2020, the Insurance Regulatory and Development Authority (Sharing of Confidential Information Concerning Domestic or Foreign Entity) Regulations, 2012, and the Insurance Regulatory and Development Authority of India (Maintenance of Insurance Records) Regulations, 2015.
  • Records, other than those specified under clause 8 of Schedule I, must be maintained for a minimum period of 10 years or as per the extant legal requirements, whichever is later, from the date of the last transaction or the date of policy expiry.
  • The Authority is empowered to share information with other regulatory bodies, government agencies and international supervisors, subject to certain conditions and confidentiality agreements.
  • The regulations define confidential information, electronic form, foreign entity, information, minimum information, regulated entity, requesting entity, and requested entity.

Impact Analysis

Insurers

  • Action Item: Conduct a thorough review of current IT infrastructure and data management policies. Develop a detailed implementation plan to ensure compliance with the new regulations.

Intermediaries and Insurance Intermediaries

  • Action Item: Review the existing data management systems and implement necessary changes for electronic record-keeping and compliance with Schedule II.

Policyholders

  • Action Item: Policyholders should be informed about the new regulations and the measures taken to protect their data.

Insurance Regulatory and Development Authority of India (IRDAI)

  • Action Item: Develop and implement a robust monitoring mechanism to ensure compliance with the new regulations. Establish clear guidelines for sharing information with other authorities.

Key Entities Referenced

Insurance Regulatory and Development Authority of India (IRDAI): The regulatory body responsible for overseeing and regulating the insurance sector in India. It is established under the Insurance Regulatory and Development Authority Act, 1999. Insurance Act, 1938: The primary legislation governing the insurance industry in India. Insurance Regulatory and Development Authority Act, 1999: The act that established the IRDAI and defines its powers and functions. Information Technology Act, 2000: The legislation governing electronic transactions and data in India. It defines the term 'Electronic Form'. Right to Information Act, 2005: The legislation that defines 'Information' in the context of domestic entities. Insurance Advisory Committee: An advisory body that the Authority consults with before making regulations. Regulated Entity: Any entity within the regulatory domain of the Authority or regulated by a foreign financial regulatory authority. Foreign entity: A foreign financial regulatory authority or any foreign financial entity. Requesting Entity: An entity requesting information relating to a Requested entity. Requested Entity: A domestic or foreign entity whose information is subject to disclosure under these regulations.
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