Date: 2016-02-04Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by section 3, 6 read with 114Aa of the Insurance Act, 1938, and sections 14 read with 26 of the Insurance Regulatory and Development Authority of India Act, 1999, the Authority
Executive Summary:
This document outlines the First Amendment Regulations of 2016 regarding the Registration and Operations of Branch Offices of Foreign Reinsurers (excluding Lloyds) in India. It amends existing regulations related to registration requirements, reinsurance business operations, and order of preference for cessions by Indian insurers. The regulations came into force on the date of their notification in the Official Gazette, February 4, 2016. The Authority will review the operation of Regulation 289 after one year based on reports.
Key Points / Main Content:
Registration Requirements:
* Regulation 4 is substituted, requiring applicants to specify a category for reinsurance business registration.
* Category I: Branch office must maintain a minimum retention of 50% of Indian reinsurance business.
* Category II: Branch office must maintain a minimum retention of 30% of Indian reinsurance business.
Operational Amendments:
* The words "Chairperson of the" are omitted from Regulations 12, 13, 15, and 16.
* In Regulation 16(g), "to the extent possible" is omitted after "in its operations."
Order of Preference for Cessions by Indian Insurers (Regulation 289):
* Indian insurers must obtain the best terms for facultative and treaty surpluses from Indian reinsurers with a minimum credit rating indicating good financial security characteristics and from entities with a certificate of registration under Regulation 4a.
* The order of preference for participation is as follows:
* a) Indian reinsurers with the specified credit rating and those granted certificate of registration under regulation 4 a.
* b) Other Indian reinsurers or those granted certificate of registration as per regulation 4 b.
* c) Branch offices of foreign reinsurers in Special Economic Zones, only after offering to entities in a and b above.
* d) The balance, if any, may be offered to Indian Insurers and overseas reinsurers
Impact Analysis:
Indian Insurers:
* Impact: Must comply with the new order of preference for ceding facultative and treaty surpluses and obtain best terms as defined by the regulations.
* Action Required: Review and revise cession practices to align with the new order of preference (Regulation 289) and ensure compliance with credit rating requirements.
Foreign Reinsurers (excluding Lloyds):
* Impact: Branch offices need to comply with the retention requirements based on their chosen registration category (Category I or II). Those in Special Economic Zones are affected by the new order of preference for cessions.
* Action Required: Ensure compliance with retention requirements and registration category.
Insurance Regulatory and Development Authority of India (IRDAI):
* Impact: Responsible for implementing and monitoring the amended regulations.
* Action Required: Undertake a review of the working of Regulation 289 after one year.
Reinsurance Advisory Committee:
* Impact: Consulted during the making of these regulations.
* Action Required: No specific action is outlined.
Key Entities Referenced
Insurance Regulatory and Development Authority of India: Regulatory body overseeing the insurance industry in India.
Insurance Act, 1938: Indian legislation governing the insurance sector, cited as a source of authority for the regulations.
Insurance Regulatory and Development Authority of India Act, 1999: Act establishing the IRDAI and defining its powers and functions.
IRDAI Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyds First Amendment Regulations, 2016: The title of the regulations being amended.
Hyderabad, Telangana: Location where the notification was issued.
Insurance Advisory Committee: Committee consulted by the IRDAI in making the regulations.
Special Economic Zone: Area where branch offices of foreign reinsurers may be set up.
T. S. Vijayan: Chairman of the IRDAI, as indicated in the document.
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EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
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PUBLISHED BY AUTHORITY
la- 49] ubZ fnYyh] c`gLifrokj] iQjojh 4] 2016@ek?k 15] 1937
No. 49] NEW DELHI, THURSDAY, FEBRUARY 4, 2016/ MAGHA 15, 1937
भारतीय बीमा िविनयामक और िवकास (cid:7079)ािधकरण
अिधसचू ना
हदै राबाद, 28 जनवरी, 2016
भारतीय बीमा िविनयामक और िवकास (cid:7079)ािधकरण
(लॉय(cid:7001)स को छोड़कर अ(cid:7008)य िवदशे ी पनु ब(cid:7278)माकता(cid:7312)(cid:6981) के शाखा कायाल(cid:6981) य(cid:7298) का
पजं ीकरण और प(cid:7407)रचालन) (पहला सशं ोधन) िविनयम, 2016
फा. स.ं भा.बी.िव.िव.(cid:7079)ा./िविनयम/1/113/2016.—बीमा अिधिनयम, 1938 क(cid:7409) धारा 114ए(ए) के साथ
प(cid:7407)ठत धारा 3, 6 तथा भारतीय बीमा िविनयामक और िवकास (cid:7079)ािधकरण अिधिनयम, 1999 क(cid:7409) धारा 26 के साथ
प(cid:7407)ठत धारा 14 (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करत े (cid:7263)ए (cid:7079)ािधकरण, बीमा सलाहकार सिमित के साथ परामश(cid:6981) करने
के बाद, इसके (cid:7367)ारा िन(cid:7388)िलिखत िविनयम बनाता ह,ै अथा(cid:6981)त:् -
1. सिं (cid:6979)(cid:7385) नाम और (cid:7079)ारंभ.– (1) ये िविनयम भारतीय बीमा िविनयामक और िवकास (cid:7079)ािधकरण (लॉय(cid:7001)स को
छोड़कर अ(cid:7008)य िवदशे ी पुनब(cid:7278)माकता(cid:6981)(cid:7312) के शाखा काया(cid:6981)लय(cid:7298) का पंजीकरण और प(cid:7407)रचालन) (पहला संशोधन)
िविनयम, 2016 के नाम स े जान े जाएगँ े ।
(2)(cid:32) ये िविनयम सरकारी राजप(cid:7074) म(cid:7286) इनके (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)गे।
2. िविनयम 4 को िन(cid:7388)िलिखत से (cid:7079)ित(cid:7021)थािपत (cid:7408)कया जाएगाः
"िविनयम 4 - पजं ीकरण के आवदे न के िलए माँग-प(cid:7074)
564 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4
आवेदक िन(cid:7388)िलिखत (cid:7408)कसी एक (cid:7088)ेणी म(cid:7286) पुनब(cid:7278)मा (cid:7390)वसाय हते ु िविनयम 3 के अधीन पंजीकरण के आवेदन के िलए
माँग-प(cid:7074) (cid:7079)(cid:7021)तुत करेगाः
क)(cid:32) (cid:7088)ेणी I – िजसम (cid:7286) िवदशे ी पुनब(cid:7278)माकता(cid:6981) का शाखा काया(cid:6981)लय भारतीय पुनब(cid:7278)मा (cid:7390)वसाय के (cid:7008)यूनतम 50%
का (cid:7079)ितधारण बनाये रखेगा;
ख)(cid:32) (cid:7088)ेणी II – िजसम (cid:7286) िवदशे ी पुनब(cid:7278)माकता (cid:6981) का शाखा कायाल(cid:6981) य भारतीय पुनब(cid:7278)मा (cid:7390)वसाय के (cid:7008)यूनतम 30%
का (cid:7079)ितधारण बनाये रखेगा।"
3. िविनयम 12, 13, 15 और 16 म(cid:7286) जहाँ भी श(cid:7011)द "का अ(cid:7007)य(cid:6979)" (cid:7408)दखाई दते े ह,(cid:7289) वहाँ उ(cid:7008)ह (cid:7286) छोड़ (cid:7408)दया जाएगा।
4. िविनयम 16(छ) म(cid:7286) श(cid:7011)द "अपने प(cid:7407)रचालन(cid:7298) म(cid:7286)" के पहले श(cid:7011)द "िजस सीमा तक लागू हो" छोड़ (cid:7408)दये जाएगँ े।
5. िविनयम 28(9) को िन(cid:7388)िलिखत से (cid:7079)ित(cid:7021)थािपत (cid:7408)कया जाएगाः
"(cid:7079)(cid:7004)येक भारतीय बीमाकता(cid:6981) िपछले तीन वष(cid:7300) के िलए अंतररा(cid:7398)ीय तौर पर (cid:7079)िस(cid:7373) (cid:7408)कसी (cid:7059)ेिडट रे(cid:7411)टग एज(cid:7286)सी से
कम से कम अ(cid:6994)छे िव(cid:7275)ीय सरु (cid:6979)ा ल(cid:6979)ण(cid:7298) से यु(cid:7334) (cid:7008)यूनतम (cid:7059)ेिडट रे(cid:7411)टग (cid:7079)ा(cid:7385) भारतीय पुनब(cid:7278)माकता (cid:6981) (पुनब(cid:7278)माकता(cid:6981)(cid:7312))
तथा इन िविनयम(cid:7298) के िविनयम 4(क) के अधीन पंजीकरण (cid:7079)माणप(cid:7074) (cid:7079)द(cid:7275) कम से कम तीन सं(cid:7021)था(cid:7312) से भी अपने
िवक(cid:7016)पी (फैक(cid:7016)टे(cid:7407)टव) और समझौता ((cid:7069)ीटी) अिधशेष(cid:7298) के िलए सव(cid:7299)(cid:7275)म शत(cid:7288) (cid:7079)ा(cid:7385) करेगा। भारतीय बीमाकता(cid:6981) तब
िन(cid:7388)िलिखत अिधमान-(cid:7059)म म(cid:7286) सहभािगता के िलए सव(cid:7299)(cid:7275)म शत(cid:7300) का (cid:7079)(cid:7021)ताव करेगाः
(क)(cid:32)ऊपर िन(cid:7416)द(cid:7397) (cid:7408)कय े गये (cid:7272)प म(cid:7286) (cid:7008)यूनतम (cid:7059)ेिडट रे(cid:7411)टग से यु(cid:7334) भारतीय पुनब(cid:7278)माकता (cid:6981) (पुनब(cid:7278)माकता(cid:6981)(cid:7312)) को
और उसके बाद उनको िज(cid:7008)ह (cid:7286) इन िविनयम(cid:7298) के िविनयम 4(क) के अधीन पंजीकरण (cid:7079)माणप(cid:7074) (cid:7079)दान (cid:7408)कया
गया हो।
(ख)(cid:32)अ(cid:7008)य भारतीय पुनब(cid:7278)माकता (cid:6981) (पुनब(cid:7278)माकता(cid:6981)(cid:7312)) को अथवा उनको िज(cid:7008)ह (cid:7286) इन िविनयम(cid:7298) के िविनयम 4(ख) के
अनुसार पंजीकरण (cid:7079)माणप(cid:7074) (cid:7079)दान (cid:7408)कया गया हो।
(ग)(cid:32) िवशेष आ(cid:7414)थक (cid:6979)े(cid:7074) (एसईज़डे ) म(cid:7286) (cid:7021)थािपत िवदशे ी पुनब(cid:7278)माकता(cid:6981)(cid:7312) के शाखा काया(cid:6981)लय(cid:7298) को, केवल उपयु(cid:6981)(cid:7334)
(क) और (ख) म(cid:7286) उि(cid:7016)लिखत सभी सं(cid:7021)था(cid:7312) को (cid:7079)(cid:7021)ताव करन े के बाद।
(घ)(cid:32)य(cid:7408)द कोई शेष हो तो उसके बाद उनका (cid:7079)(cid:7021)ताव भारतीय बीमाकता(cid:6981)(cid:7312) और िवदशे ी पुनब(cid:7278)माकता(cid:6981)(cid:7312) को
(cid:7408)कया जा सकता ह।ै
(cid:7021)प(cid:7397)ीकरण – (cid:7079)ािधकरण उसे (cid:7079)(cid:7021)तुत क(cid:7409) गई सूचना ((cid:7407)रपो(cid:7419)टग) के आधार पर एक वष(cid:6981) क(cid:7409) अविध के बाद इन
िविनयम(cid:7298) और िवशेष (cid:7272)प स ेिविनयम 28(9) - भारतीय बीमाकता(cid:6981)(cid:7312) (cid:7367)ारा अ(cid:7007)यप(cid:6981)ण(cid:7298) (सेश(cid:7008)स) के िलए अिधमान-
(cid:7059)म - के काय(cid:6981)-चालन क(cid:7409) समी(cid:6979)ा करेगा।"
टी. एस. िवजयन
अ(cid:7007)य(cid:6979)
[िव(cid:6980)ापन. III/4/असा./161/349]¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the 28th January, 2016
IRDAI (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) (First
Amendment) Regulations, 2016
F. No. IRDAI/Reg/1/113/2016.—In exercise of the powers conferred by section 3, 6 read with 114A(a)
of the Insurance Act, 1938, and sections 14 read with 26 of the Insurance Regulatory and Development
Authority of India Act, 1999, the Authority, in consultation with the Insurance Advisory Committee hereby
makes the following regulations, namely:
1.(cid:32) Short title and commencement.—(1) These regulations may be called the Insurance Regulatory and
Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers
other than Lloyd’s) (First Amendment) Regulations, 2016.
(2) They shall come into force on the date of their notification in the Official Gazette.
2.(cid:32) Regulation 4 shall be substituted with the following:
“Regulation 4 - Requisition for registration application
An applicant shall make a requisition for registration application under regulation 3 for reinsurance
business in any one of the following:
a)(cid:32) Category I – wherein the branch office of a foreign reinsurer shall maintain a minimum retention
of 50% of the Indian reinsurance business;
b)(cid:32) Category II – wherein the branch office of a foreign reinsurer shall maintain a minimum retention
of 30% of the Indian reinsurance business.”
3.(cid:32) In Regulations 12, 13, 15 and 16 wherever the words “Chairperson of the” are appearing, they shall be
omitted.
4.(cid:32) In Regulation 16(g) the words “to the extent possible” after the words “in its operations” shall be omitted.
5.(cid:32) Regulation 28(9) shall be substituted with the following:
“Every Indian Insurer shall obtain best terms for their facultative and treaty surpluses from Indian
reinsurer(s) having a minimum credit rating which is having atleast good financial security
characteristics from any of the internationally renowned credit rating agencies for the previous three
years and also from atleast three entities which have been granted certificate of registration under
Regulation 4(a) of these regulations. The Indian insurer shall then offer the best terms for participation in
the following order of preference;
(a) To the Indian re-insurer(s) having a minimum credit rating as given above and thereafter to those
granted certificate of registration under regulation 4 (a) of these Regulations.
(b) To other Indian re-insurer(s) or to those granted certificate of registration as per regulation 4 (b) of
these regulations.
(c) To the branch offices of foreign reinsurers set up in Special Economic Zone, only after having offered
to all entities in (a) and (b) above
(d) The balance, if any, may thereafter be offered to Indian Insurers and overseas reinsurers
Explanation - The Authority will undertake a review of the working of these regulations and in particular
operation of Regulation 28(9) – order of preference for cessions by Indian insurers after a period of one
year based on the reporting’s made to it.
T. S. VIJAYAN, Chairman
[ADVT. III /4/Exty/161/349]
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.