IRDAI vide Reference No. IRDAI/NL/Cir/Misc/7/1/2023 dated January 12, 2023 has issued a Circular on “Modification of Surety Insurance Guidelines” which shall come into force with immediate effect .
Modifications made to IRDAI (Surety Insurance Contracts) Guidelines, 2022 are as follows:
Clause No
Previous Clause
Modified Clause
Nature of changes
6.1(b)
6.1(b) Premium charged for all Surety Insurance policies underwritten in a financial year, including all instalments due in subsequent year/s for those policies, shall not exceed 10% of the total gross written premium of that year, subject to a maximum of Rs. 500 crores.
6.1 (b) Premium charged for all Surety Insurance policies underwritten in a financial year, including all instalments due in subsequent year/s for those policies, shall not exceed 10% of the total gross written premium of that year, subject to a maximum of Rs. 500 crores.
Provided the above cap is not applicable to mono-line surety insurance companies registered for doing the surety insurance business on a standalone basis. The surety insurance business of mono-line surety insurance companies shall be subject to such prudential norms as may be specified from time to time.
Modification – Proviso has been incorporated to exempt mono-line surety insurance companies from attracting the provision of cap on premium charged pertaining to surety insurance business as applicable to other insurance companies
6.4(a)
Surety Insurance Contracts may be offered to infrastructure projects of Government/Private in all modes.
Surety insurance Contracts may be offered in respect of commercial surety and contract surety requirements.
Modification- Scope of the contracts that may be covered under Surety insurance has been widened
Source category: IRDAI
Attachments
- /2023/141_Circular_on_Modifications_to_Surety_Guidelines.pdf
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