Date: 2015-08-26Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by Sub-section (2) of the Section 101A of the Insurance Act 1938, the Authority, after consultation with the Advisory Committee constituted under section 101B of the Insurance Act, 1938.
Executive Summary:
This notification, issued by the Insurance Regulatory and Development Authority of India, outlines the percentage cessions of sum insured on general insurance policies to be reinsured with the Indian Reinsurer. It specifies the reinsurance terms and conditions for business attaching from April 1, 2015, to March 31, 2016, in accordance with Section 101A of the Insurance Act, 1938. The notification defines class limits of cession in sum insured and commission terms.
Key Points / Main Content:
Reinsurance Cessions:
* 5% of the sum insured on each General Insurance Policy to be reinsured with the Indian Reinsurer for the period of April 1, 2015, to March 31, 2016.
Class Limits of Cession in Sum Insured:
* Fire, IAR Large Risks: Rs 750 crores sum insured.
* MDLOP: Rs 50 crores sum insured per Group Health and Motor TP Insurance policy.
* Marine Hull: Rs 50 crores sum insured per vessel.
* War SRCC: Rs 50 crores sum insured per vessel.
* Motor TP: No Limit.
* Workmen's Compensation: No Limit.
* General Aviation Hull: No Limit.
* General Aviation Liability: No Limit.
* All Liability products: Rs 25 crores per policy including USA excluding financial liability and Rs 50 crores per policy excluding USA.
* Financial, Credit and Guarantee Lines, mortgage insurance, special contingency policies etc: Rs 50 crores sum insured per policy.
* Other Miscellaneous: No Limit.
* Machinery Breakdown, Boiler Explosion and related loss of profits: Rs 100 crores per risk.
* Contractors All Risks, MDLOP Erection All Risks, Advance Loss of Profits, DSU Insurance: Rs 500 crores per risk.
* Oil Energy: Rs 50 crores SI per risk
* Crop/Weather Insurance: Rs 50 crores SI
* Aviation Airlines: No Limit.
Commission Terms:
* Sliding scale of Profit commission based on the total obligatory portfolio of the company.
* Profit commission is payable if Loss Ratio is less than 78.
* Surplus to be calculated after factoring Incurred loss to be worked at the end of 3 Financial years, Management Expenses at 2, Profit at 5, Commission at 15, Loss Ratio at 50 to 78.
* No profit commission is payable if the loss ratio is equal to or more than 78.
* Surplus to be shared between the direct insurer and GIC on 50:50 basis.
* Profit commission shall not exceed 14.
Notice Requirement:
* For classes with No Limit on cessions, the Indian Reinsurer may require immediate notice with underwriting information of any cession exceeding a specified amount per risk. Cessions in excess of such limits will be binding subject to the notice and information been given.
Impact Analysis:
Indian Reinsurer:
* Impact: Receives a mandated percentage of reinsurance cessions from general insurance policies.
* Action Required: May specify a limit per risk for classes with no cession limits and require immediate notice with underwriting information for cessions exceeding that limit.
Insurers (ceding):
* Impact: Required to cede a percentage of their sum insured to the Indian Reinsurer and adhere to specified terms and conditions.
* Action Required: Comply with the mandatory cession requirements, provide notice and underwriting information for high-value cessions in classes with no limits, and adhere to commission terms.
Key Entities Referenced
Insurance Regulatory and Development Authority of India: Regulatory body for the insurance industry in India.
Hyderabad, Telangana: City in India where the notification was issued.
Insurance Act 1938: Indian legislation governing the insurance sector, specifically referenced in relation to Sections 101A and 101B.
Central Government: The national government of India, which provides approval for the notification.
Indian Reinsurer: The national reinsurance company in India, with which a percentage of general insurance policies must be reinsured.
T. S. Vijayan: Chairman of the Insurance Regulatory and Development Authority of India.
General Insurance Policy: Insurance policy that covers a wide range of risks, excluding life insurance.
Advisory Committee: Committee constituted under section 101B of the Insurance Act, 1938 to provide consultation.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
la- 285] ubZ fnYyh] cq/okj] vxLr 26] 2015@Hkkæ 4] 1937
No. 285] NEW DELHI, WEDNESDAY, AUGUST 26, 2015/BHADRA 4, 1937
भारतीय बीमा िविनयामक और िवकास (cid:1)ािधकरण
अिधसूचना
हदै राबाद, 18 अग(cid:10)त, 2015
फा.... स..ं.. भा....बी....िव....िव....(cid:1)ा....////आरआई ////11111111////111100001111//// 2222000011115555.—बीमा अिधिनयम, 1938 क(cid:12) धारा 101ए क(cid:12) उप-धारा (2)
(cid:13)ारा (cid:1)द(cid:15) शि(cid:17)य(cid:19) का (cid:1)योग करत े (cid:21)ए (cid:1)ािधकरण, बीमा अिधिनयम, 1938 क(cid:12) धारा 101बी के अधीन ग(cid:23)ठत सलाहकार
सिमित के साथ परामश (cid:27) करन ेके बाद और के(cid:29)(cid:30) सरकार के पूव(cid:27)-अनमु ोदन स ेइसके (cid:13)ारा िन"िलिखत अिधसूचना जारी करता
ह,ै अथा(cid:27)त ्:-
भारतीय पुनब)माकता (cid:27)के पास पुनब)मा क(cid:12) जानेवाली (cid:1)*यके साधारण बीमा पॉिलसी पर बीिमत रािश का (cid:1)ितशत
अ+यप(cid:27)ण (सेश(cid:29)स) 1 अ(cid:1)लै 2015 से 31 माच (cid:27)2016 तक के वष(cid:27) के दौरान बीमा संल1ता (अटै3चग) के संबंध म 45% होगा।
धारा 101ए(4) म 4 यह 5व(cid:10)था ह ै 6क बीमा अिधिनयम, 1938 क(cid:12) धारा 101ए क(cid:12) उप-धारा (2) के अंतग(cid:27)त एक
अिधसूचना के (cid:13)ारा भी इस धारा के अधीन लेन-दने करन े हते ु अपिे 7त पुनब)मा के 6कसी भी 5वसाय के संबंध म 4 शत9 को
िविन:द; 6कया जाए तथा ऐसी शत< भारतीय पुनब)माकता(cid:27)= और अ(cid:29)य बीमाकता(cid:27)= पर बा+यकारी ह(cid:19)गी।
बीमा अिधिनयम, 1938 क(cid:12) धारा 101ए (cid:13)ारा (cid:1)द(cid:15) शि(cid:17) के अनुसरण म 4 (cid:1)ािधकरण उ(cid:17) अिधिनयम क(cid:12) धारा
101बी के अधीन ग(cid:23)ठत सलाहकार सिमित के साथ परामश (cid:27) करन े के बाद उ(cid:17) अिधिनयम क(cid:12) धारा 101ए का अनुपालन
करत े(cid:21)ए इसके (cid:13)ारा "भारतीय पुनब)माकता"(cid:27) को पुनब)मा अ+यप(cid:27)ण(cid:19) (सेश(cid:29)स) के िलए (cid:1)ितशत और शत < िविन:द; करता ह।ै
3639 GI/2015 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
वग(cid:27) बीिमत रािश म 4अ+यप(cid:27)ण क(cid:12) सीमा कमीशन
अि1 (फायर), आईएआर बड़ े 750 करोड़ Aपय े बीिमत रािश (एमडी+एलओपी) क) तेल और ऊजा,(cid:27)
जोिखम (cid:1)ित जोिखम िवमानन, सामूिहक (cid:10)वा(cid:10)Dय
मरीन कागF/डीएसय ूबीमा 50 करोड़ Aपय े बीिमत रािश (cid:1)ित तथा मोटर टीपी को छोड़कर
पॉिलसी/बॉटम/(cid:1)षे ण सभी वग9 के िलए (cid:29)यूनतम
मरीन हल 50 करोड़ Aपय ेबीिमत रािश (cid:1)ित जलयान 15%
ख) सामिू हक (cid:10)वा(cid:10)Dय के
युG (वार) और एसआरसीसी 50 करोड़ Aपय ेबीिमत रािश (cid:1)ित जलयान
िलए (cid:29)यूनतम 10%
ग) मोटर टीपी के िलए (cid:29)यूनतम
मोटर कोई सीमा नहH*
5%
कामगार(cid:19) क(cid:12) 7ितपIू त कोई सीमा नहH*
घ) इसस े कुछ भी अिधक
जीआईसी और बीमा
साधारण िवमानन हल कोई सीमा नहH*
कंपनी के बीच पर(cid:10)पर
साधारण िवमानन दये ता कोई सीमा नहH*
सहमत Eप म 4हो सकता
िव(cid:15)ीय दये ता को छोड़कर सभी 25 करोड़ Aपय े(cid:1)ित पॉिलसी यूएसए सिहत/50
ह।ै
दये ता उ*पाद
करोड़ Aपय े(cid:1)ित पॉिलसी यूएसए को छोड़कर
िव(cid:15)ीय, ऋण और गारंटी 50 करोड़ Aपय ेबीिमत रािश (cid:1)ित पॉिलसी
5व(cid:10)थाएँ, बंधक बीमा, िवशेष
आकि(cid:10)मकता पॉिलिसया ँआ6द
अ(cid:29)य िविवध कोई सीमा नहH*
मशीनरी िबगड़ जाना, बॉयलर 100 करोड़ Aपय े(cid:1)ित जोिखम
िव(cid:10)फोट और संबिं धत लाभ(cid:19) क(cid:12)
हािन
ठेकेदार के सभी जोिखम, िनमाण(cid:27) के 500 करोड़ Aपय े(cid:1)ित जोिखम (एमडी+एलओपी)
सभी जोिखम, लाभ(cid:19) क(cid:12) अिNम
हािन, डीएसय ूबीमा
तेल और ऊजा (cid:27) 50 करोड़ Aपय ेबीिमत रािश (cid:1)ित जोिखम 5%
फ़सल/मौसम बीमा 50 करोड़ Aपय ेबीिमत रािश 15%
िवमानन (एअरलाइ(cid:29)स) कोई सीमा नहH* औसत शत <
लाभ कमीशन
1. कंपनी के कुल बा+यकारी संिवभाग के आधार पर लाभ कमीशन का Pिमक Eप स े(cid:29)यून मान ((cid:10)लाइ3डग (cid:10)केल)
2. लाभ कमीशन दये ह ैय6द हािन अनुपात 78% से कम हो
3. अिधशेष (सरRलस) क(cid:12) गणना फैSटTरग के बाद करनी होगी
• उठाई गई हािन % (इसक(cid:12) गणना 3 िव(cid:15)ीय वष9 क(cid:12) समािU पर करनी होगी)
• (cid:1)बंधन 5य 2% पर
• लाभ 5% पर
• कमीशन 15% पर
• हािन अनुपात 50% स े78% पर।
4. कोई लाभ कमीशन दये नहH ह ैय6द हािन अनुपात 78% या 78% स ेअिधक हो।¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
5. अिधशेष को (cid:1)*य7 बीमाकता (cid:27)और जीआईसी के बीच 50%:50% आधार पर साझा करना होगा।
6. लाभ कमीशन 14% से अिधक नहH होगा।
*(cid:23)टRपणीः ऊपर तारकिचXना6ं कत अ+यप(cid:27)ण(cid:19) (सेश(cid:29)स) पर "कोई सीमा नहH" से यु(cid:17) वग9 के संबंध म 4 "भारतीय पुनब)माकता"(cid:27)
अ+यप(cid:27)ण करनेवाल े बीमाकता (cid:27) स े उसके (cid:13)ारा िविन:द; (cid:1)ित जोिखम रािश स े अिधक उसको 6कसी भी अ+यप(cid:27)ण के िवषय म 4
जोिखम-अंकन क(cid:12) जानकारी सिहत त*काल नो(cid:23)टस दने े क(cid:12) अपे7ा कर सकता ह।ै ऐसी सीमा= स े अिधक अ+यप(cid:27)ण (सेश(cid:29)स)
उ(cid:17) नो(cid:23)टस और जानकारी दने े के अधीन बा+यकारी ह(cid:19)गे।
टी. एस. िवजयन, अ+य7
[िवYापन. III/4/असा./161/15 (177)]
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the 18th August, 2015
F. No IRDAI/RI/11/101/2015.—In exercise of the powers conferred by Sub-section (2) of the Section
101A of the Insurance Act 1938, the Authority, after consultation with the Advisory Committee constituted
under section 101B of the Insurance Act, 1938 and with the previous approval of the Central Government,
hereby makes the following notification, namely:-
The percentage cessions of the sum insured on each General Insurance Policy to be reinsured with the
Indian Reinsurer shall be 5% in respect of insurance attaching during the year 1st April, 2015 to 31st March,
2016.
Section 101A(4) provides that a notification under sub-section (2) of Section 101A of the Insurance Act,
1938 may also specify the terms and conditions in respect of any business of re-insurance required to be
transacted under this section and such terms and conditions shall be binding on Indian re-insurers and other
insurers.
In pursuance of the power conferred by Section 101A of the Insurance Act, 1938 the Authority in
consultation with the Advisory Committee constituted under section 101B of the Act hereby specifies the
percentage and terms and conditions for the reinsurance cessions to the “Indian Reinsurer” in compliance
with section 101A of the Act.
Class Limit of cession in sum insured Commission
Fire, IAR Large Risks Rs 750 crores sum insured (MD+LOP) a) Minimum 15% for all classes
per risk
except Oil & Energy, Aviation,
Marine Cargo/DSU Rs 50 crores sum insured per Group Health and Motor TP
Insurance policy/bottom/sending
b) Minimum 10% for group health.
Marine Hull Rs 50 crores sum insured per vessel
War & SRCC Rs 50 crores sum insured per vessel c) Minimum 5% for Motor TP
Motor No Limit* d) Anything over and above this can
Workmen’s No Limit* be as mutually agreed between
Compensation GIC and the Insurance Company.
General Aviation Hull No Limit*
General Aviation Liability No Limit*
All Liability products Rs 25 crores per policy including USA/
excluding financial Rs 50 crores per policy excluding USA
liability
Financial, Credit and Rs 50 crores sum insured per policy
Guarantee Lines,
mortgage insurance,
special contingency
policies etc.
Other Miscellaneous No Limit*4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
Machinery Breakdown, Rs 100 crores per risk
Boiler Explosion and
related loss of profits
Contractor’s All Risks, Rs 500 crores per risk (MD+LOP)
Erection All Risks,
Advance Loss of Profits,
DSU Insurance
Oil & Energy Rs 50 crores SI per risk 5%
Crop/Weather Insurance Rs 50 crores SI 15%
Aviation (Airlines) No Limit* Average Terms
Profit Commission
1. Sliding scale of Profit commission based on the total obligatory portfolio of the company
2. Profit commission is payable if Loss Ratio is less than 78%
3. Surplus to be calculated after factoring
• Incurred loss % (to be worked at the end of 3 Financial years)
• Management Expenses at 2%
• Profit at 5%
• Commission at 15%
• Loss Ratio at 50% to 78%
4. No profit commission is payable if the loss ratio is equal to or more than 78%.
5. Surplus to be shared between the direct insurer and GIC on 50% : 50% basis.
6. Profit commission shall not exceed 14%
* Note: In respect of classes with “No Limit” on cessions marked by an asterisk above, the “Indian Reinsurer”
may require the ceding insurer to give immediate notice with underwriting information of any cession to it
exceeding an amount per risk specified by it. Cessions in excess of such limits will be binding subject to the
notice and information been given.
T. S. VIJAYAN, Chairman
[ADVT. III /4/Exty./161/15(177)]
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.