IRDAI has issued an Exposure draft of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) (First Amendment) Regulations, 2022 dated October 20, 2022.
Background:
IRDAI has proposed an amendment the IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 with an objective of facilitating utilization of capital to increase insurance penetration in the area of Crop Insurance Business.
Highlights of amendments:
- Premiums receivable relating to State/Central Government sponsored schemes, to the extent they are not realized within a period of 365 days shall be placed with value zero in respect of Crop Insurance Business against the earlier timeline of 180 days.
- Factor- A and Factor-B for calculation of Required Solvency Margin (RSM) in respect of Crop Insurance Business are reduced to 0.50 from 0.70
Comparison of existing provisions vis-à-vis proposed provisions are as follows:
Regulation
Existing provision
Proposed provision
Regulation 1(b)
Premiums receivables relating to State/Central government sponsored schemes, to the extent they are not realized within a period of 180 days
Premiums receivable relating to State/Central Government sponsored schemes, to the extent they are not realized within a period of 365 days shall be placed with value zero in respect of Crop Insurance Business
Regulation 6 read with Schedule-III
Factor – A and Factor-B for calculation of Required Solvency Margin (RSM) in respect of Crop Insurance Business are 0.70.
Factor – A and Factor-B for calculation of Required Solvency Margin (RSM) in respect of Crop Insurance Business are reduced to 0.50.
Source category: IRDAI
Attachments
- /2022/99_EXPOSU~13.PDF
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