Home India Insurance Regulatory And Development Authority In exercise of the powers conferred by sub section 1 of sect...
Date: 21-Mar-2024 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sub section 1 of section 64 ULA of the Insurance Act,

Issued by Insurance Regulatory And Development Authority · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Insurance Regulatory and Development Authority of India (IRDAI) de-notifies several prevailing tariffs for various insurance types, making them no longer in force from April 1, 2024.
  • This action is taken under Section 64 ULA of the Insurance Act, 1938, which allows for the de-notification of tariffs previously notified by the Tariff Advisory Committee.

Key Changes

  • The following insurance tariffs are de-notified effective April 1, 2024:
  • Fire Insurance Tariffs (excluding All India Fire Tariff, 2001, which was already de-tariffed on December 28, 2020): All India Fire Tariff, Industrial All Risks Tariff, Consequential Loss (Fire) Tariff, Petro-chemical Tariff, List of Hazardous Goods.
  • Motor: All India Motor Tariff.
  • Engineering Insurance Tariffs: Contractors All Risk Insurance, Contractors Plant and Machinery Insurance, Machinery Breakdown Insurance, Electronic Equipment Insurance, Civil Engineering Completed Risks Insurance, Erection All Risk/Storage Cum Erection Insurance, Loss of profit (MB & BLOP) Insurance, Boiler and Pressure Vessels Insurance, Deterioration of Stocks-(potato) Insurance.
  • Miscellaneous: Workmen’s Compensation Insurance Tariffs.
  • Marine: Tea Tariff.
  • Insurers must continue to offer and cannot discourage the use of tariff products that existed before this notification.
  • Coverage of risks falling under the de-notified tariffs will be subject to IRDAI (Insurance Products) Regulations, 2024, and the Master Circular on products and procedures in general insurance business.

Impact Analysis

Insurers

  • Insurers will need to develop new products and pricing models that are compliant with the new regulatory framework.

Policyholders

  • Policyholders should be aware that existing tariff products must still be offered by insurers.

Government/IRDAI

  • The government aims to promote a more competitive and innovative insurance market through deregulation.

Brokers/Agents

  • Brokers and agents need to understand the implications of the new regulatory framework.

Action Items

  • IRDAI: Monitor the market and enforce compliance with the new regulations.

Key Entities Referenced

IRDAI: Insurance Regulatory and Development Authority of India, the regulatory body for the insurance sector in India. Insurance Act, 1938: The primary legislation governing the insurance industry in India. Section 64 ULA provides for de-notification of tariffs. IRDA Act, 1999: The Act that established the IRDAI and defines its powers and functions. Tariff Advisory Committee: A former body responsible for setting insurance tariffs, now defunct. IRDAI (Insurance Products) Regulations, 2024: Regulations issued by IRDAI governing insurance products. Master Circular (Guidelines) on products and procedures in general insurance business: Guidelines issued by IRDAI on products and procedures in general insurance business
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-ए.पी.-अ.-22032024-253298 xxxGIDHxxx CG-AP-E-22032024-253298 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 195] िई कदल्ली, बृहस्ट्प जतिार, माच च21, 2024/चत्रै 1, 1946 No. 195] NEW DELHI, THURSDAY, MARCH 21, 2024/CHAITRA 1, 1946 भारतीय बीमा जिजियामक और जिकास प्राजधकरण अजधसचू िा हदै राबाद, 20 माच,च 2024 फा. स.ं भा.बी.जि.जि.प्रा /साधारण बीमा/प्रिल्ु क/13/207/2024—यह अजधसूचिा बीमा अजधजियम, 1938 की धारा 64यूएलए की उप-धारा (1) के अिुसार िारी की िाती ह,ै िो अजधजियम की छोडी हुई धारा 64यूसी, के अतं गतच पहले की प्रिल्ु क सलाहकार सजमजत द्वारा अजधसूजचत सभी प्रिल्ु कों की अजधसूचिा को जिरस्ट्त करिे के जलए व्यिस्ट्था करती ह,ै जििका प्रचलि में होिा िारी ह।ै 1.यह ध्याि देि े योग्य ह ैकक िर्च 2006 म,ें प्रिुल्क सलाहकार सजमजत द्वारा प्रिल्ु कों को िापस लिे े के अिुसरण म,ें भारतीय बीमा जिजियामक और जिकास प्राजधकरण (“प्राजधकरण”) ि े आईआरडीए अजधजियम, 1999 की धारा 14 की उप-धारा (2) के खडं (i) के अतं गतच अपिे म ें जिजहत िजियों का प्रयोग करते हुए अजधसूचिा सदं भच. 034/आईआरडीए/डी- टैररफ़/कदसंबर-06 कदिांक 4 कदसंबर 2006 िारी की कक सबं ंजधत प्रिल्ु कों के अंतगतच अजि, इंिीजियररंग, मोटर, कमचकार प्रजतकर और बीमा के अन्य िग च िैसे व्यिसाय के कुछ िगों के जलए लागू सामान्य जिजियमों (प्रीजमयमों/प्रीजमयम रेरटंग स े संबंजधत को छोडकर अन्य), ितों, जिबंधिों, खंडों, िारंरटयों, पाजलसी और पष्ृ ांकि िाक्य-रचिा का अिुसरण अगल े आदेिों तक िारी रहगे ा। 2. अब बीमा अजधजियम, 1938 की धारा 64 यूएलए की उप-धारा (1) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, प्राजधकरण इसके द्वारा अजधसूजचत करता ह ै कक प्रचजलत जिम्नजलजखत सभी प्रिुल्कों की अजधसूचिा को पणू चतः जिरस्ट्त ककया गया ह ैतथा ये प्रिुल्क 01.04.2024 स ेप्रभािी रूप म ेंप्रचलि में िहीं ह ैं: 2159 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] क) अजि बीमा प्रिल्ु क (अजखल भारतीय अजि प्रिल्ु क, 2001 को छोडकर अन्य, िो प्रिल्ु क अजधसूचिा कदिांक 28 कदसंबर 2020 द्वारा पहल ेही िापस जलये गय ेह)ैं , अथाचत ् i. अजखल भारतीय अजि प्रिल्ु क ii. औद्योजगक सभी िोजखम प्रिुल्क iii. पररणामी हाजि (अजि) प्रिुल्क iv. पेरो-केजमकल प्रिल्ु क v. संकटमय िस्ट्तओंु की सूची ख) मोटर, अथाचत ् अजखल भारतीय मोटर प्रिल्ु क ग) इंिीजियररंग बीमा प्रिल्ु क, अथाचत ् : i. ठेकेदार सभी िोजखम बीमा ii. ठेकेदार संयंत्र और मिीिरी बीमा iii. मिीिरी खराबी बीमा iv. इलेक्राजिक उपस्ट्कर बीमा v. जसजिल इंिीजियररंग पणू च िोजखम बीमा vi. पररजिमाचण सभी िोजखम/भंडारण-ि-पररजिमाचण बीमा vii. लाभ की हाजि (एमबी एण्ड बीएलओपी) बीमा viii. बायलर और दबाि पात्र बीमा ix. माल का ह्रास-(आलू) बीमा घ) जिजिध, अथाचत् कमचकार प्रजतकर बीमा प्रिल्ु क। ङ) मरीि, अथाचत ् चाय प्रिुल्क 3. तथाजप, यह स्ट्पष्ट ककया िाता ह ै कक कोई भी बीमाकताच ककसी भी समय इस अजधसूचिा के पूिच अजस्ट्तत्ि में जिद्यमाि ककसी भी प्रिुल्क उत्पाद का उपयोग ककसी ग्राहक द्वारा करि े के जिर्य में पीछे िहीं हटेगा अथिा उसका उपयोग करिे स े ककसी ग्राहक को हतोत्साजहत िहीं करेगा अथिा ऐसा कोई भी प्रिल्ु क उत्पाद ककसी भी ग्राहक को देिे स े अस्ट्िीकार िहीं करेगा। 4. इसके द्वारा यह भी अजधसूजचत ककया िाता ह ै कक 01.04.2024 स े प्रभािी रूप म ें उपयिुच परै ाग्राफ 2 म ें बताये गय े अजधसूचिा-जिरस्ट्त प्रिल्ु कों के दायरे म ें आिेिाल े िोजखमों का किरेि आईआरडीएआई (बीमा उत्पाद) जिजियम, 2024 तथा प्राजधकरण द्वारा यथाजिजिर्दचष्ट, साधारण बीमा व्यिसाय में उत्पादों और प्रकियाओं संबंधी मास्ट्टर पररपत्र (कदिाजिदेि) के अधीि होगा। देबािीर् पण्डा, अध्यक्ष [जिज्ञापि-III/4/असा./851/2023-24] INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 20th March, 2024 F. No.: IRDAI//Gen Insurance/Tariff/13/207/2024—In exercise of the powers conferred by sub section (1) of section 64 ULA of the Insurance Act, 1938, which provides for de-notification of all tariffs notified by the erstwhile Tariff Advisory Committee under the omitted section 64UC of the Act, and which continue to be in force.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 1. It may be noted that in the year 2006, pursuant to withdrawal of tariffs by the Tariff Advisory Committee, the Insurance Regulatory and Development Authority of India (“Authority”) in exercise of the 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 that the general regulations (other than those relating to premiums/ premium 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 under the relevant Tariffs shall continue to be followed until further orders. 2. Now, in exercise of the powers conferred by sub section (1) of Section 64 ULA of the Insurance Act, 1938, the Authority hereby notifies that all the following prevailing tariffs : a) Fire Insurance Tariffs (other than All India Fire Tariff, 2001 which was already de-tariffed vide notification dated 28th December, 2020), namely i. All India Fire Tariff ii. Industrial All Risks Tariff iii. Consequential Loss (Fire) Tariff iv. Petro-chemical Tariff v. List of Hazardous Goods b) Motor, namely All India Motor Tariff c) Engineering Insurance Tariffs, namely; i. Contractors All Risk Insurance ii. Contractors Plant and Machinery Insurance iii. Machinery Breakdown Insurance iv. Electronic Equipment Insurance v. Civil Engineering Completed Risks Insurance vi. Erection All Risk/Storage Cum Erection Insurance vii. Loss of profit (MB & BLOP) Insurance viii. Boiler and Pressure Vessels Insurance ix. Deterioration of Stocks-(potato) Insurance d) Miscellaneous, namely Workmen’s Compensation Insurance Tariffs. e) Marine, namely Tea Tariff stand entirely de-notified and no longer in force effective 01.04.2024. 3. It is however clarified that no insurer shall at any time withdraw or discourage the use of or decline to offer to any customer any of the tariff products which have been in existence prior to this notification. 4. It is hereby further notified that effective 01.04.2024, the coverage of risks coming within the scope of the de- notified tariffs stated in paragraph 2 above shall be subject to the IRDAI (Insurance Products) Regulations, 2024 and Master Circular (Guidelines) on products and procedures in general insurance business, as specified by the Authority. DEBASISH PANDA, Chairperson [ADVT.-III/4/Exty./851/2023-24] 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.

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