Executive Summary:
This document outlines the Insurance Regulatory and Development Authority of India's (IRDAI) regulations regarding the obligations of insurers concerning motor third-party insurance business. These regulations, effective from the date of publication in the Official Gazette, define the method for calculating an insurer's obligation for a financial year and specify submission requirements. The regulations are titled "Insurance Regulatory and Development Authority of India Obligation of Insurer in respect of Motor Third Party Insurance Business Regulations, 2015."
Key Points / Main Content:
* **Short Title and Commencement:**
* The regulations are named "Insurance Regulatory and Development Authority of India Obligation of Insurer in respect of Motor Third Party Insurance Business Regulations, 2015."
* They come into force on the date of their publication in the Official Gazette.
* **Definitions:**
* "Act" refers to the Insurance Act, 1938, as amended.
* "Authority" means the IRDAI.
* "Insurer" refers to insurance companies registered with the Authority and licensed to underwrite direct motor insurance business in India.
* "Motor Third Party Insurance Business" includes liability-only and package policies in the motor portfolio.
* "New Insurer" is defined as one that started operations in the immediate preceding financial year of the financial year for which obligations are to be fixed.
* **Obligations:**
* The obligation of an insurer regarding motor third-party insurance business for a Financial Year X is calculated using a specific formula based on Gross Direct Premium Income (GDPI) across different categories. The formula is: C/A * D/B * E * (90/100)
* A = Total GDPI under all lines of business of all insurers in the immediate preceding financial year
* B = Total GDPI under motor insurance business of all insurers in the immediate preceding financial year
* C = Insurers GDPI under all lines of business in the immediate preceding financial year
* D = Insurers GDPI under motor insurance business in the immediate preceding financial year
* E = Total GDPI under motor third party insurance business of all insurers during the immediate preceding financial year
* **Exceptions:**
* New insurers are exempt from the obligatory requirements for the first two financial years, including the year operations begin.
* New insurers are excluded from the obligatory requirements calculations for other existing insurers during the exemption period.
* **Submissions:**
* Insurers must submit financial returns to the Authority every quarter within forty-five days of the quarter's end, according to Schedule MTP A.
* **Underwriting of Motor Third Party Risk**
* Insurers cannot refuse to underwrite liability only motor policy covering motor third party insurance risk.
Impact Analysis:
* **Insurers:**
* Impact: Must comply with the obligation calculation and meet the set requirements for motor third-party insurance. They are required to submit quarterly financial returns. They cannot refuse to underwrite liability only motor policy covering motor third party insurance risk.
* Action Required: Calculate their motor third-party insurance obligation based on the provided formula, ensure compliance, and submit quarterly financial returns as per Schedule MTP A.
* **New Insurers:**
* Impact: Exempt from the obligations for the first two financial years.
* Action Required: Be aware of the exemption period and prepare for compliance once the exemption expires.
* **Insurance Regulatory and Development Authority of India (IRDAI):**
* Impact: Responsible for enforcing and monitoring compliance with these regulations.
* Action Required: Oversee the implementation of these regulations and review the submitted financial returns.
Key Entities Referenced
Insurance Regulatory and Development Authority of India: Regulatory body overseeing the insurance industry in India; referred to as 'the Authority' in the document.
Insurance Act, 1938: Indian legislation governing the insurance sector. Section 114A and 32D of this act are mentioned.
Insurance Regulatory and Development Authority Act, 1999: Indian legislation establishing the IRDAI and defining its powers.
Motor Third Party Insurance Business: Refers to insurance coverage for liabilities to third parties arising from motor vehicle accidents.
Official Gazette: The official publication for government notifications and regulations.
Hyderabad, Telangana: City in Telangana, India; place where the notification was issued.
Insurance Advisory Committee: Committee consulted by the Insurance Regulatory and Development Authority of India.
T. S. Vijayan: Chairman 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. 210] NEW DELHI, FRIDAY, JUNE 5, 2015/JYAISTHA 15, 1937
(cid:1)(cid:1)(cid:1)(cid:1)ााााििििधधधधककककररररणणणण
भभभभााााररररततततीीीीयययय बबबबीीीीममममाााा ििििववववििििननननययययााााममममकककक औऔऔऔरररर ििििववववककककाााासससस
अअअअििििधधधधससससचचूूचचूू ननननाााा
हदै राबाद, 2 जून, 2015
भारतीय बीमा िविनयामक और िवकास (cid:1)ािधकरण ((((मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय के संबंध म (cid:15) बीमाकता (cid:19) का दािय(cid:21)व)))) िविनयम,,,, 2222000011115555
फफफफाााा.... सससस..ंं..ंं भभभभाााा....बबबबीीीी....ििििवववव....ििििवववव....(cid:1)(cid:1)(cid:1)(cid:1)ाााा....////ििििववववििििननननययययमममम////8888////99998888////2222000011115555....————बीमा िविनयामक और िवकास (cid:1)ािधकरण अिधिनयम, 1999 (1999 का 41) क(cid:22)
धारा(cid:23) 14 और 26 तथा बीमा अिधिनयम, 1938 क(cid:22) धारा 32डी के साथ प(cid:24)ठत बीमा अिधिनयम, 1938 (1938 का 4) क(cid:22) धारा
114ए (cid:26)ारा (cid:1)द(cid:27) शि(cid:29)य(cid:30) का (cid:1)योग करते !ए (cid:1)ािधकरण बीमा सलाहकार सिमित के साथ परामश (cid:19)करने के बाद इसके (cid:26)ारा िन$िलिखत
िविनयम बनाता ह,ै अथा(cid:19)त ्:-
ििििववववििििननननययययमममम(cid:6)(cid:6)(cid:6)(cid:6) ककककाााा ससससििंंििंं(cid:9)(cid:9)(cid:9)(cid:9)(cid:10)(cid:10)(cid:10)(cid:10) ननननाााामममम औऔऔऔरररर (cid:11)(cid:11)(cid:11)(cid:11)ााााररररंंंंभभभभ
(1) (क) ये िविनयम भारतीय बीमा िविनयामक और िवकास (cid:1)ािधकरण (मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय के संबंध म (cid:15)बीमाकता (cid:19)का
दािय(cid:21)व) िविनयम, 2015 के नाम से जाने जाएँगे ।
(ख) ये िविनयम सरकारी राजप- म (cid:15)इनके (cid:1)काशन क(cid:22) तारीख को (cid:1)भावी ह(cid:30)गे।
पपपप(cid:16)(cid:16)(cid:16)(cid:16)ररररभभभभााााषषषषााााएएएएँँ ँँ
(2) इन िविनयम(cid:30) म (cid:15)जब तक संदभ(cid:19) से अ3यथा अपेि(cid:9)त न हो--
(क) 'अिधिनयम' से समय-समय पर यथासंशोिधत बीमा अिधिनयम, 1938 (1938 का 4) अिभ(cid:1)ेत ह;ै
(ख) '(cid:1)ािधकरण' से बीमा िविनयामक और िवकास (cid:1)ािधकरण अिधिनयम, 1999 (1999 का 41) क(cid:22) धारा 3 के उपबंध(cid:30) के अधीन
5थािपत भारतीय बीमा िविनयामक और िवकास (cid:1)ािधकरण अिभ(cid:1)ेत ह।ै
(ग) 'बीमाकता'(cid:19) से (cid:1)ािधकरण के पास पंजीकृत और भारत म (cid:15) (cid:1)(cid:21)य(cid:9) मोटर बीमा (cid:10)वसाय के अंतग(cid:19)त जोिखम अंकन करने के िलए
लाइस(cid:15)स (cid:1)ा7 बीमा कंपिनया ँ अिभ(cid:1)ेत ह8।
(घ) 'मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय' म (cid:15)मोटर संिवभाग म (cid:15)जारी क(cid:22) गई केवल दये ता वाली पॉिलिसय(cid:30) एवं पैकेज पॉिलिसय(cid:30), दोन(cid:30)
के संबंध म (cid:15)मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय िनिहत ह।ै
2490 GI/2015 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(ङ) 'नया बीमाकता'(cid:19) से वह बीमाकता (cid:19)अिभ(cid:1)ेत है िजसने उस िव(cid:27)ीय वष(cid:19), िजसके िलए मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय के संबधं म (cid:15)
दािय(cid:21)व िनधा(cid:19)(cid:24)रत ;कय ेजान ेह,8 के त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) के दौरान अपने (cid:10)वसाय के प(cid:24)रचालन (cid:1)ारंभ ;कय े ह(cid:30)।
ददददाााािििियययय(cid:21)(cid:21)(cid:21)(cid:21)वववव
(3) एक िव(cid:27)ीय वष(cid:19) (x) के िलए मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय के संबंध म (cid:15)दािय(cid:21)व िन$ानुसार (cid:1)ा7 ;कया जाना चािहएः
(i) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) म (cid:15) सभी बीमाकता(cid:19)(cid:23) के (cid:10)वसाय क(cid:22) सभी (cid:10)व5था(cid:23) के अंतग(cid:19)त कुल 'सकल (cid:1)(cid:21)य(cid:9)
(cid:1)ीिमयम आय' (जीडीपीआई) = A
(ii) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) म (cid:15)सभी बीमाकता(cid:19)(cid:23) के मोटर बीमा (cid:10)वसाय के अंतग(cid:19)त कुल जीडीपीआई = B
(iii) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) म (cid:15)(cid:10)वसाय क(cid:22) सभी (cid:10)व5था(cid:23) के अंतग(cid:19)त बीमाकता (cid:19)क(cid:22) जीडीपीआई = C
(iv) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) म (cid:15)मोटर बीमा (cid:10)वसाय के अंतग(cid:19)त बीमाकता (cid:19)क(cid:22) जीडीपीआई = D
(v) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) के दौरान सभी बीमाकता(cid:19)(cid:23) के मोटर ततृ ीय प(cid:9) बीमा (cid:10)वसाय के अंतग(cid:19)त कुल जीडीपीआई
= E
(vi) एक िव(cid:27)ीय वष(cid:19) म (cid:15)पूरा ;कया जानेवाला बीमाकता (cid:19)का दािय(cid:21)व
X = C/A +D/B x E x 90
2 100
अअअअपपपपववववाााादददद
(4) पहली बार मोटर बीम े का जोिखम-अंकन करने के िलए लाइस(cid:15)स (cid:1)ा7, मोटर बीमा (cid:10)वसाय अं;कत करने वाले नय़े बीमाकता (cid:19)
को पहले वष(cid:19), िजसम (cid:15) उसके प(cid:24)रचालन (cid:1)ारंभ ;कय े गये ह(cid:30), को िमलाकर उसके प(cid:24)रचालन(cid:30) के पहले दो िव(cid:27)ीय वष@ के दौरान
दािय(cid:21)व क(cid:22) अपे(cid:9)ा को लागू करने से छूट दी जाएगी।
(5) ऐसे बीमाकता (cid:19) को अ3य मौजूदा बीमाकता(cid:19)(cid:23) के िलए 3यूनतम दािय(cid:21)व क(cid:22) अपे(cid:9)ाए ँ िनधा(cid:24)(cid:19) रत करने के िलए क(cid:22) जाने वाली
गणना(cid:23) स ेभी ऐसी अविध के िलए छूट दी जाएगी जब तक 3यूनतम दािय(cid:21)व क(cid:22) अपे(cid:9)ाए ँउस बीमाकता (cid:19)पर लागू न ह(cid:30)।
(cid:11)(cid:11)(cid:11)(cid:11)(cid:22)(cid:22)(cid:22)(cid:22)ततततततुुततुु ीीीीककककररररणणणण
(6) (cid:1)(cid:21)येक बीमाकता (cid:19) (cid:1)ािधकरण को िव(cid:27)ीय वष(cid:19) क(cid:22) (cid:1)(cid:21)येक ितमाही के िलए अनुसूची–एमटीपी–ए के अनसु ार िव(cid:27)ीय िववरिणयाँ
ितमाही क(cid:22) समाि7 से प8तालीस ;दन के अंदर (cid:1)5तुत करेगा।
अअअअननननससुुससुु चचूूचचूू ीीीी –––– एएएएममममटटटटीीीीपपपपीीीी –––– एएएए ((((ममममोोोोटटटटरररर ततततततृृततृृ ीीीीयययय पपपप(cid:9)(cid:9)(cid:9)(cid:9) बबबबीीीीममममाााा (cid:10)(cid:10)(cid:10)(cid:10)ववववससससाााायययय))))
(i) बीमाकता (cid:19)का नामः
(ii) पंजीकरण संBया और आईआरडीएआई के पास पंजीकरण क(cid:22) तारीखः
(iii) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) के दौरान सकल (cid:1)(cid:21)य(cid:9) (cid:1)ीिमयम आयः
(iv) त(cid:21)काल पूव(cid:19)वत= िव(cid:27)ीय वष(cid:19) के दौरान सकल (cid:1)(cid:21)य(cid:9) मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय (cid:1)ीिमयमः¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(v) िववरण क(cid:22) अविधः _______________को समा7 ितमाही
ममममदददद (cid:15)(cid:15) (cid:15)(cid:15) ररररााााििििशशशश (((((cid:16)(cid:16)(cid:16)(cid:16)पपपपयययय))ेे))ेे
ििििततततममममााााहहहहीीीी ककककेेेे ििििललललएएएए ििििततततममममााााहहहहीीीी ततततकककक
केवल दये ता वाली पॉिलिसय(cid:30) के संबंध म (cid:15) सकल (cid:1)(cid:21)य(cid:9) मोटर तृतीय प(cid:9) बीमा
(cid:10)वसाय (cid:1)ीिमयम (L)
पैकेज पॉिलिसय(cid:30) के संबंध म (cid:15) सकल (cid:1)(cid:21)य(cid:9) मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय (cid:1)ीिमयम
(P)
कुल सकल (cid:1)(cid:21)य(cid:9) मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय (cid:1)ीिमयम (L+P)
कुल सकल (cid:1)(cid:21)य(cid:9) मोटर िनजी (cid:9)ित बीमा (cid:10)वसाय (cid:1)ीिमयम
कुल सकल (cid:1)(cid:21)य(cid:9) (cid:1)ीिमयम आय
ममममोोोोटटटटरररर ततततततृृततृृ ीीीीयययय पपपप(cid:9)(cid:9)(cid:9)(cid:9) ककककाााा जजजजोोोोििििखखखखमममम अअअअककंंककंं नननन
(7) िविनय़म (3) म (cid:15) मोटर तृतीय प(cid:9) बीमा (cid:10)वसाय के संबंध म (cid:15) बीमाकता (cid:19) का 3यूनतम दािय(cid:21)व िनधा(cid:19)(cid:24)रत ;कया गया है। इसके
बावजूद, कभी भी कोई बीमाकता (cid:19) अपने काया(cid:19)लय (काया(cid:19)लय(cid:30)) म (cid:15) आने वाली मोटर तृतीय प(cid:9) बीमा जोिखम क(cid:22) र(cid:9)ा से यु(cid:29) "केवल
दये ता" वाली मोटर पॉिलसी का जोिखम-अंकन करने से इनकार नहD करेगा।
टी. एस. िवजयन, अEय(cid:9)
[िवFापन-III/4//असाधारण/161/15(100)]
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the 2nd June, 2015
Insurance Regulatory and Development Authority of India (Obligation of Insurer in respect of Motor
Third Party Insurance Business) Regulations, 2015
F. No. IRDAI/Reg/8/98/2015.—In exercise of the powers conferred by Section 114A of the Insurance Act,
1938 (4 of 1938) read with Sections 14 and 26 of the Insurance Regulatory and Development Authority Act,
1999 (41 of 1999) and Section 32D of Insurance Act, 1938, the Authority in consultation with the Insurance
Advisory Committee, hereby makes the following regulations, namely:-
Short Title and Commencement of the Regulations
(1) (a) These Regulations may be called the Insurance Regulatory and Development Authority of India
(Obligation of Insurer in respect of Motor Third Party Insurance Business) Regulations, 2015.
(b) These shall come into force on the date of their publication in the Official Gazette.
Definitions
(2) In these regulations, unless the context otherwise requires,:-4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(a) "Act" means the Insurance Act, 1938 (4 of 1938), as amended from time to time;
(b) “Authority” means the Insurance Regulatory and Development Authority of India established under
the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of
1999).
(c) “Insurer” means the insurance companies registered with the Authority and licensed to underwrite
direct motor insurance business in India.
(d) “Motor Third Party Insurance Business” consists of the motor third party insurance business in
respect of both, the liability only policies as well as the package policies issued in motor portfolio.
(e) “New Insurer” means an insurer which has started its business operations during the immediate
preceding financial year of the financial year for which obligations in respect of motor third party
insurance business are to be fixed.
Obligations
(3) The Obligation of an Insurer in respect to Motor Third Party insurance business for a Financial
Year(X) should be arrived as below:
(i) Total ‘Gross Direct Premium Income(GDPI)’ under all lines of business of all insurers in the
immediate preceding financial year = A
(ii) Total GDPI under motor insurance business of all insurers in the immediate preceding
financial year = B
(iii) Insurer’s GDPI under all lines of business in the immediate preceding financial year = C
(iv) Insurer’s GDPI under motor insurance business in the immediate preceding financial year = D
(v) Total GDPI under motor third party insurance business of all insurers during the immediate
preceding financial year = E
(vi) Obligation of the Insurer to be met in a financial year
X = C A +D B x E x 90
2 100
Exceptions
(4) The new insurer writing motor insurance business licensed to underwrite motor insurance for the first
time shall be exempted from the application of the obligatory requirement during first two financial
years of its operations including the financial year in which its operations are started.
(5) Such insurer shall also be excluded from the calculations for determining the minimum obligatory
requirements for other existing insurers for such period till which the minimum obligatory
requirements are not applicable to that insurer.
Submissions
(6) Every insurer shall submit the financial returns to the Authority for every quarter of the financial year
within forty five days of the end of the quarter as per the Schedule – MTP –A¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5
Schedule – MTP- A (Motor Third Party Insurance Business)
(i) Name of the Insurer:
(ii) Registration No. and Date of Registration with the IRDAI:
(iii) Gross Direct Premium Income during immediate preceding FY:
(iv) Gross Direct Motor Third Party Insurance Business Premium during immediate preceding
FY:
(v) Statement Period: Quarter ending __________
Items Amount (Rs)
For the Quarter Up to the
Quarter
Gross Direct Motor Third Party Insurance Business
Premium in respect of liability only policies (L)
Gross Direct Motor Third Party Insurance Business
Premium in respect of package policies (P)
Total Gross Direct Motor Third Party Insurance
Business Premium (L+P)
Total Gross Direct Motor Own damage Insurance
Business Premium
Total Gross Direct Premium Income
Underwriting of Motor Third Party Risk
(7) The Regulation (3) stipulates the minimum obligation of an insurer in respect of motor third party
insurance business. Notwithstanding this, at no instance any insurer shall refuse to underwrite the
“liability only” motor policy covering motor third party insurance risk coming to its office (s).
T. S. VIJAYAN, Chairman
[ADVT.III/4/Exty./161/15(100)]
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