IRDAI Notification on Arbitration clause related provisions under tariff regulations

The Authority has issued a notification bearing F. No. IRDAI/GenInsurance/Tariff/1/195/2024 (‘Notification’) on January 22, 2024, de-notifying the Arbitration clause in various tariff products. This Notification impacts Fire, Motor, Engineering, Workmen’s Compensation, and other classes of insurance business.

Earlier, the Authority exercised its powers vested under clause (i) of sub-section (2) of Section 14 of the IRDA Act, 1999 and issued a notification bearing reference no: Ref.034/IRDA/De-Tariff/Dec-06 dated 04 th December 2006 which specifies that the tariff general regulations (other than those relating to 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 which were then under tariffs (‘Erstwhile tariffs’) would continue until further orders.

By the Notification stated above the arbitration clause-related provisions in tariff general regulations, terms, conditions, clauses, warranties, policy, add-ons, endorsement wordings, and proposal forms applicable to risks under the Erstwhile tariffs are de-notified, effective from 27 th October, 2023.

Relevant Governing Law:

Section 64 ULA of the Insurance Act, 1938 –

(1). Notwithstanding anything contained in this Part, until the rates, advantage and terms and conditions laid down by the Advisory Committee under section 64UC are de-notified by the Authority with effect from such date as the Authority may by notification in the Official Gazette determine, and the rates, advantages and terms and conditions are decided by the insurer concerned, the rates, advantages and terms and conditions notified by the Advisory Committee shall continue to be in force and shall always be deemed to have been in force and any such rates, advantages and terms and conditions shall be binding on all the insurers.

Source category: IRDAI

Attachments

• /2024/341_Gazette_Notification_on_Denotification_of_Arbitration_Clause.pdf