Executive Summary:
This document outlines the Insurance Regulatory and Development Authority of India's regulations regarding loans or temporary advances to full-time employees of insurers. These regulations, effective from the date of publication in the official Gazette, define permissible loan purposes, set limits, and mandate board-approved policies. The regulations aim to ensure responsible lending practices within the insurance sector.
Key Points / Main Content:
Definitions:
* "Act" refers to the Insurance Act, 1938.
* "Authority" means the Insurance Regulatory and Development Authority of India.
* "Officer" is defined as per Section 2(59) of the Companies Act, 2013, excluding non-whole-time directors.
* "Full-time Employees" includes all insurer employees and officers.
Restrictions on Loans and Advances:
* Insurers cannot grant loans or temporary advances to officers who are not whole-time directors, except as per Section 29(1) of the Insurance Act, 1938.
* Insurers cannot grant loans or temporary advances to full-time employees, except as per Section 29(1) of the Act.
Permissible Loan Purposes (provided that an Insurer may grant the loans or temporary advances to its full time Employees only for the following purposes):
* Purchasing a car or two-wheeler.
* Purchasing a personal computer and other electronic devices.
* Purchasing furniture.
* Constructing/acquiring a house for personal use.
* Education of employees' children.
* Festival advances.
* Other purposes specified in a board-approved policy.
Loan Limits and Conditions:
* The aggregate of all loans to a full-time employee cannot exceed one crore rupees and must be linked to the employee's fixed remuneration.
Board Approved Policy:
* Insurers granting loans or temporary advances must have a board-approved scheme in place.
Terms and Conditions:
* Loans and advances must be part of the compensation/remuneration package, as per the board-approved policy.
* Terms and conditions must be approved by the Board or the Nomination and Remuneration Committee.
* Interest rates for whole-time directors and other officers cannot be lower than those for other employees.
* Such loans and advances are not admissible for Available Solvency Margin.
Transitory Provisions:
* Insurers may review existing loans to address transition issues arising from these regulations.
Power to Remove Difficulty:
* The Chairperson of the Authority may issue clarifications or guidelines to address difficulties in applying or interpreting these regulations.
Impact Analysis:
Insurers:
Impact: Insurers must establish board-approved policies for loans and advances, adhere to loan purpose restrictions and limits, and ensure compliance with the defined terms and conditions. They may also need to review existing loan arrangements.
Action Required: Develop or update loan policies, implement procedures to ensure compliance, and review existing loans as necessary.
Full-Time Employees:
Impact: The regulation limits the purposes for which loans and advances can be taken and sets a maximum aggregate loan amount.
Action Required: Be aware of the permissible loan purposes, loan limits, and terms and conditions when applying for loans or advances from the insurer.
Key Entities Referenced
Insurance Regulatory and Development Authority of India: Regulatory body governing the insurance industry in India.
Insurance Act, 1938: Indian legislation governing the insurance sector.
Insurance Regulatory and Development Authority Act, 1999: Indian legislation establishing the Insurance Regulatory and Development Authority of India.
Insurance Advisory Committee: Committee consulted by the Insurance Regulatory and Development Authority of India.
Loans or Temporary advances to the Full time Employees of the Insurers Regulations, 2016: Regulations pertaining to loans and temporary advances provided by insurers to their full-time employees.
Section 29: Section of the Insurance Act, 1938 referenced in the regulation related to loans.
Companies Act, 2013: Indian legislation governing companies, used here to define 'officer'.
Hyderabad, Telangana: City in Telangana, India; likely location of the Insurance Regulatory and Development Authority of India.
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EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 197] NEW DELHI, THURSDAY, MAY 12, 2016/VAISAKHA 22, 1938
भभभभााााररररततततीीीीयययय बबबबीीीीममममाााा ििििववववििििननननययययााााममममकककक औऔऔऔरररर ििििववववककककाााासससस (cid:1)(cid:1)(cid:1)(cid:1)ााााििििधधधधककककररररणणणण
अअअअििििधधधधससससचचूूचचूू ननननाााा
हदै राबाद, 4 मई, 2016
भभभभााााररररततततीीीीयययय बबबबीीीीममममाााा ििििववववििििननननययययााााममममकककक औऔऔऔरररर ििििववववककककाााासससस (cid:1)(cid:1)(cid:1)(cid:1)ााााििििधधधधककककररररणणणण
((((बबबबीीीीममममााााककककतततताााा(cid:13)(cid:13)(cid:12)(cid:12)(cid:13)(cid:13)(cid:12)(cid:12) ककककेेेे पपपपणणूूणणूू (cid:12)क(cid:12)क(cid:12)क(cid:12)कााााििििललललकककक ककककममममचच(cid:12)(cid:12)चच(cid:12)(cid:12) ाााा(cid:18)(cid:18)(cid:18)(cid:18)ररररयययय(cid:20)(cid:20)(cid:20)(cid:20) ककककोोोो ऋऋऋऋणणणण अअअअथथथथववववाााा अअअअ(cid:22)(cid:22)(cid:22)(cid:22)थथथथााााययययीीीी अअअअिििि(cid:24)(cid:24)(cid:24)(cid:24)मममम))))
ििििववववििििननननययययमममम,,,, 2222000011116666
फफफफाााा.... सससस..ंं.ं.ं भभभभाााा....बबबबीीीी....ििििवववव....ििििवववव....(cid:1)(cid:1)(cid:1)(cid:1)ाााा....////ििििववववििििननननययययमममम////11113333////111122225555////2222000011116666.... – बीमा अिधिनयम, 1938 (1938 का 4) क(cid:2) धारा 29(3)(ए) तथा बीमा
िविनयामक और िवकास (cid:3)ािधकरण अिधिनय़म, 1999 (1999 का 41) क(cid:2) धारा(cid:9) 14 और 26 के साथ प(cid:11)ठत बीमा अिधिनयम, 1938
क(cid:2) धारा 114ए क(cid:2) उप-धारा (2) के खंड (आईबी) (cid:14)ारा (cid:3)द(cid:16) शि(cid:18)य(cid:20) का (cid:3)योग करते (cid:23)ए भारतीय बीमा िविनयामक और िवकास
(cid:3)ािधकरण, बीमा सलाहकार सिमित के साथ परामश(cid:26) करने के बाद, इसके (cid:14)ारा िन(cid:28)िलिखत िविनयम बनाता ह,ै अथा(cid:26)त्:-
1. ससससंिंिंिंि(cid:27)(cid:27)(cid:27)(cid:27)(cid:28)(cid:28)(cid:28)(cid:28) ननननाााामममम औऔऔऔरररर (cid:1)(cid:1)(cid:1)(cid:1)ााााररररंंंंभभभभ
(1) ये िविनयम भारतीय बीमा िविनयामक और िवकास (cid:3)ािधकरण (बीमाकता(cid:26)(cid:9) के पूण(cid:26)कािलक कम(cid:26)चा(cid:11)रय(cid:20) को ऋण अथवा
अ&थायी अि’म) िविनयम, 2016 के नाम से जाने जाएँगे ।
(2) ये िविनयम सरकारी राजप) म* इनके (cid:3)काशन क(cid:2) तारीख से (cid:3)वृ(cid:16) ह(cid:20)गे।
2222.... ((((1111)))) पपपप(cid:18)(cid:18)(cid:18)(cid:18)ररररभभभभााााषषषषााााएएएए ँँ ँँ---- इन िविनयम(cid:20) म*, जब तक संदभ(cid:26) से अ3यथा अपेि4त न हो, -
क) "अअअअििििधधधधििििननननययययमममम" से बीमा अिधिनयम, 1938 (1938 का 4) अिभ(cid:3)ेत ह;ै
ख) "(cid:1)(cid:1)(cid:1)(cid:1)ााााििििधधधधककककररररणणणण" से बीमा िविनयामक और िवकास (cid:3)ािधकरण अिधिनयम, 1999 (1999 का 41) क(cid:2) धारा 3 क(cid:2) उप-धारा (1)
के अधीन &थािपत भारतीय बीमा िविनयामक और िवकास (cid:3)ािधकरण अिभ(cid:3)ेत ह;ै
2358 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
ग) """"अअअअििििधधधधककककााााररररीीीी"""" से कंपनी अिधिनयम, 2013 क(cid:2) धारा 2 (59) म* प(cid:11)रभािषत अिधकारी अिभ(cid:3)ेत ह,ै परंतु गैर-पूण(cid:26)कािलक
िनदेशक इसम* शािमल नह7 ह;ै
घ) """"पपपपणणूूणणूू (cid:12)क(cid:12)क(cid:12)क(cid:12)कााााििििललललकककक ककककममममचच(cid:12)(cid:12)चच(cid:12)(cid:12) ााााररररीीीी"""" से बीमाकता (cid:26)के सभी कम(cid:26)चारी अिभ(cid:3)ेत ह 8तथा बीमाकता(cid:26) के अिधकारी इसम* शािमल ह।8
(2) इन िविनयम(cid:20) म* (cid:3)यु(cid:18) और अप(cid:11)रभािषत, परंतु बीमा अिधिनयम, 1938 (1938 का 4) अथवा बीमा िविनयामक और िवकास
(cid:3)ािधकरण अिधिनयम, 1999(1999 का 41) अथवा उनके अधीन बनाय ेगये िनयम(cid:20) अथवा िविनयम(cid:20) म* प(cid:11)रभािषत श:द(cid:20) और
अिभ;ि(cid:18)य(cid:20) के अथ(cid:26) वही ह(cid:20)गे जो उन अिधिनयम(cid:20), िनयम(cid:20) अथवा िविनयम(cid:20) म* <मशः उनके िलए िनधा(cid:26)(cid:11)रत >कय ेगये ह।8
ऋऋऋऋणणणण अअअअथथथथववववाााा अअअअ(cid:22)(cid:22)(cid:22)(cid:22)थथथथााााययययीीीी अअअअिििि(cid:24)(cid:24)(cid:24)(cid:24)मममम
3. कोई भी बीमाकता(cid:26) >कसी अिधकारी, जो पूण(cid:26)कािलक िनदेशक नह7 ह,ै को कोई ऋण अथवा अ&थायी अि’म अिधिनयम क(cid:2) धारा 29
(1) के अंतग(cid:26)त क(cid:2) गई ;व&था को छोड़कर संपि(cid:16) के दिृ?बंधक पर अथवा वैयि(cid:18)क जमानत पर अथवा अ3य (cid:3)कार से (cid:3)दान नह7
करेगा।
4. कोई भी बीमाकता(cid:26) अपने पूण(cid:26)कािलक कम(cid:26)चा(cid:11)रय(cid:20) को कोई ऋण अथवा अ&थायी अि’म अिधिनयम क(cid:2) धारा 29 (1) के अंतग(cid:26)त क(cid:2) गई
;व&था को छोड़कर संपि(cid:16) के दिृ?बंधक पर अथवा वैयि(cid:18)क जमानत पर अथवा अ3य (cid:3)कार से (cid:3)दान नह7 करेगा;
बशतA >क बीमाकता(cid:26) अपने पूण(cid:26)कािलक कम(cid:26)चा(cid:11)रय(cid:20) को केवल िन(cid:28)िलिखत (cid:3)योजन(cid:20) के िलए ही ऋण अथवा अ&थायी अि’म (cid:3)दान कर
सकता हःै
क. कार और / या दपु िहया वाहन खरीदन ेके िलए ऋण;
ख. िनजी कंBयूटर खरीदन ेके िलए और अ3य इलैDEॉिनक साधन खरीदन ेके िलए ऋण;
ग. फनHचर खरीदन ेके िलए ऋण;
घ. िनजी उपयोग के िलए आवास का िनमा(cid:26)ण करने / अिध’हण करने के िलए ऋण;
ङ. कम(cid:26)चा(cid:11)रय(cid:20) के बI(cid:20) क(cid:2) िश4ा के िलए ऋण;
च. Jयोहार के िलए अि’म;
छ. बीमाकता(cid:26) के बोड(cid:26) (cid:14)ारा इस संबंध म* अनुमो>दत नीित म* िविनLद? Mप म* कोई अ3य (cid:3)योजन।
परंतु आग ेयह भी शत(cid:26) होगी >क एक पूण(cid:26)कािलक कम(cid:26)चारी (cid:14)ारा िलये गये सभी ऋण(cid:20) को एकसाथ लेने पर उनक(cid:2) कुल रािश एक
करोड़ Pपये से अिधक नह7 होगी तथा उसे कम(cid:26)चा(cid:11)रय(cid:20) के िनयत पा(cid:11)रQिमक के साथ संबR >कया जाएगा।
बबबबोोोोडडडड(cid:12)(cid:12) (cid:12)(cid:12) ####ाााारररराााा अअअअननननममुुममुु ोोोो&&&&ददददतततत ननननीीीीिििितततत
5. अपने कम(cid:26)चा(cid:11)रय(cid:20) को ऋण अथवा अ&थायी अि’म (cid:3)दान करनेवाले (cid:3)Jयेक बीमाकता(cid:26) के पास उपयु(cid:26)(cid:18) ऋण अथवा अ&थायी अि’म
(cid:3)दान करने के िलए उसके िनदेशक बोड(cid:26) (cid:14)ारा िविधवत् अनुमो>दत एक योजना होगी।
शशशशतततत )) ))
6. िविनयम 4 म* उिSलिखत ऋण अथवा अ&थायी अि’म िन(cid:28)िलिखत शतT के अधीन ह(cid:20)ग े
(1) उ(cid:18) ऋण और अि’म िनदेशक बोड(cid:26) अथवा बोड(cid:26) क(cid:2) नामांकन और पा(cid:11)रQिमक सिमित िजसे इस (cid:3)कार शि(cid:18)याँ
(cid:3)Jयायोिजत क(cid:2) गई ह(cid:20), जैसी ि&थित हो, (cid:14)ारा अनुमो>दत 4ितपूVत / पा(cid:11)रQिमक नीित के अनुसार 4ितपूVत / पा(cid:11)रQिमक
पैकेज का भाग बन*गे।
(2) ऐसे ऋण(cid:20) अथवा अि’म(cid:20) क(cid:2) शतW ऐसी ह(cid:20)गी जैसी >क बोड(cid:26) अथवा बोड(cid:26) क(cid:2) नामांकन और पा(cid:11)रQिमक सिमित िजसे ऐसी
शि(cid:18)याँ (cid:3)Jयायोिजत क(cid:2) गई ह(cid:20), (cid:14)ारा अनुमो>दत ह(cid:20)।
बशतA >क पूण(cid:26)कािलक िनदेशक(cid:20) और अ3य अिधका(cid:11)रय(cid:20) को >दय े जानेवाले ऋण अथवा अ&थायी अि’म(cid:20) पर लगाई
जानेवाली :याज-दर बीमाकता(cid:26) के अपने कम(cid:26)चा(cid:11)रय(cid:20) को >दय ेजानेवाले ऋण(cid:20) अथवा अ&थायी अि’म(cid:20) पर लगाई जानेवाली
:याज-दर से िन(cid:28)तर नह7 हो सकती।¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(3) इस (cid:3)कार के सभी ऋण और अि’म, उपल:ध शोध4मता (साSवे3सी) माVजन के िलए &वीकाय(cid:26) नह7 ह(cid:20)गे।
अअअअंतंतंतंतववववतत(cid:12)(cid:12)तत(cid:12)(cid:12) ++++ उउउउपपपपबबबबंधंधंधंध
7. वत(cid:26)मान म* बकाया ऋण(cid:20) अथवा अ&थायी अि’म(cid:20) क(cid:2) शतT क(cid:2) समी4ा बीमाकता(cid:26) के िववेक पर इन िविनयम(cid:20) के आलोक म* क(cid:2) जा
सकती ह ैता>क सं<मण के दौरान उJपX होनेवाली सम&या(cid:9) का समाधान >कया जा सके।
कककक(cid:18)(cid:18)(cid:18)(cid:18)ठठठठननननााााइइइइययययाााा ँँ ँँददददररररूूूू ककककररररनननन ेे ेेकककक.... शशशशिििि////
8. इन िविनयम(cid:20) के >कसी भी उपबंध को लागू करने अथवा उसका अथ(cid:26)िनणय(cid:26) करने मँे उJपX होनेवाली >कसी भी शंका अथवा क(cid:11)ठनाई
को दरू करने के िलए (cid:3)ािधकरण का अZय4 आव\यक समझे गये Mप म* उपयु(cid:18) &प?ीकरण अथवा >दशािनदAश जारी कर सकता ह।ै
टटटटीीीी.... एएएएसससस.... ििििववववजजजजययययनननन,,,, अअअअ0000यययय(cid:27)(cid:27)(cid:27)(cid:27)
[िव]ापन.III/4/असा./79]
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the 4th May, 2016
Insurance Regulatory and Development Authority of India (Loans or Temporary advances to the Full-
time Employees of the Insurers) Regulations, 2016
F.No. IRDAI/Reg/13/125/2016.- In exercise of the powers conferred by clause (ib) of sub-section (2)
of Section 114A read with Section 29 (3) (a) of the Insurance Act, 1938 (4 of 1938) and Sections 14 and 26 of
the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Insurance Regulatory and
Development Authority of India, in consultation with the Insurance Advisory Committee, hereby makes the
following Regulations, namely:
1. Short title and commencement.—
(1) These Regulations may be called as Insurance Regulatory and Development Authority of India
(Loans or Temporary advances to the Full time Employees of the Insurers) Regulations, 2016;
(2) These regulations shall come into force from the date of their publication in the official Gazette
2. (1) Definitions.-In these Regulations, unless the context otherwise requires, -
a) “Act” means the Insurance Act, 1938 (4 of 1938);
b) “Authority” means the Insurance Regulatory and Development Authority of India established
under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act,
1999 ( 41 of 1999);
c) “Officer” means an officer defined in Section 2 (59) of the Companies Act, 2013 but does not
include non whole-time director;
d) “Full time Employees” means all employees of the insurer and includes Officers of the insurer.
(2) All words and expressions used herein and not defined in these Regulations but defined in the
Insurance Act, 1938(4 of 1938), or in the Insurance Regulatory and Development Authority Act,
1999 (41 of 1999) or Rules or Regulations made thereunder shall have the same meanings
respectively assigned to them in those Acts, Rules or Regulations.
Loans or Temporary Advances
3. No insurer shall grant any loans or temporary advances to any officer who is not a whole-time Director
either on hypothecation of property or on personal security or otherwise except as provided under Section
29 (1) of the Act.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
4. No insurer shall grant any loans or temporary advances to its full-time Employees either on
hypothecation of property or on personal security or otherwise, except as provided under Section 29 (1)
of the Act;
Provided that an Insurer may grant the loans or temporary advances to its full time Employees only for
the following purposes:
a.Loan for purchasing of car and / or two wheeler;
b. Loan for purchasing of personal computer and for other electronic devices;
c.Loan for purchasing of furniture;
d. Loan for constructing/acquiring a house for personal use;
e.Loans for education of the children of the employees
f. Advance for Festival;
g. Any other purpose as may be specified in the policy in this regard approved by the Board of the
Insurer.
Provided further that the aggregate of all loans taken together by a full time employee shall not exceed
rupees one crore and shall be linked to the fixed remuneration of the employees.
Board Approved Policy
5. Every Insurer who grants loans or temporary advances to its employees shall have in place a scheme duly
approved by its Board of Directors for the grant of the above said loans or temporary advances.
Terms and Conditions
6. The loans or temporary advances stated in regulation 4 shall be subject to the following conditions
(1) The loans and advances shall form part of the compensation /remuneration package in accordance
with the compensation / remuneration policy approved by the Board of Directors or by the
Nomination and Remuneration Committee of the Board to which powers have been so delegated, as
the case may be.
(2)The terms and conditions of such loans or advances shall be such as may be approved by the Board or
by the Nomination and Remuneration Committee of the Board to which such powers have been
delegated.
Provided that the interest rate charged on loan or temporary advances to whole-time Directors and
other officers cannot be lower than the rate charged on loans or temporary advances to the insurer’s
own employees.
(3) All such loans and advances shall not be admissible for Available Solvency Margin.
Transitory Provisions
7. The terms and conditions of the loans or temporary advances which are currently outstanding may, at the
insurer’s discretion, be reviewed in the light of these Regulations in order to address transition issues, as
may arise.
Power to remove Difficulty
8. In order to remove any doubts or the difficulties that may arise in the application or interpretation of any
of the provisions of these regulations, the Chairperson of the Authority may issue appropriate
clarifications or guidelines as deemed necessary.
T.S. VIJAYAN, Chairman
[ADVT. III /4/Exty./79]
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