IRDAI (Actuarial, Finance and Investment Functions for Insurers) Regulations, 2024

Background

The Authority has published IRDAI (Actuarial, Finance and Investment Functions for Insurers) Regulations, 2024 (‘Regulation’), in the Gazette of India, bearing F. No. IRDAI/Reg/10/204/2024 dated March 20, 2024, after repealing the following prescription:

1. IRDAI (Actuarial Report and Abstract for Life Insurance Business) Regulations, 2016

2. IRDAI (Distributions of Surplus) Regulations, 2002.

3. IRDAI (Assets, Liabilities and Solvency Margin of Life Insurance Business) Regulations, 2016.

4. IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016.

5. IRDAI (Appointed Actuary) Regulations 2022.

6. IRDAI (Investment) Regulations, 2016.

7. IRDAI (Preparation of Financial Statements and Auditors’ Report of Insurance Companies) Regulations, 2002.

8. IRDAI (Loans or Temporary Advances to Full Time Employees of the Insurers) Regulations, 2016

The central objective of the Regulation is to ensure sound and responsive management practices with respect to Actuarial, Finance and Investment including but not limited to the valuation of assets and liabilities, regulatory reporting, bonus distributions, solvency, and risk management and to protect the interest of stakeholders.

Major highlights of the Regulation are mentioned hereinunder:

1. The Regulation shall be applicable to the Insurers transacting Life, General, or Health Insurance business in India and shall come into effect from April 1, 2024, which shall remain in force for three years thereafter.

2. Regulation No. 2(A) (vi) of IRDAI (Appointed Actuary) Regulations, 2022 stating the term ‘Professional Standard’ as

“Professional Standard means the standard of practice specified by the Institute of Actuaries of India by issue of Guidance notes/ Actuarial Practise standard to its members.”

has been replaced by Regulation No. 3(1)(ii) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating:

“Actuarial Practice Standards means the standards of practice and guidance notes issued by the Institute of Actuaries of India”

3. Regulation No. 2(A) (ii) of IRDAI (Appointed Actuary) Regulations, 2022 stating the term ‘Actuary’ as

“Actuary means an actuary as defined in clause (a) of sub-section (1) of section 2 of the Actuaries Act, 2006”

has been replaced by the Regulation No. 3(1)(iii) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating:

“Actuary means an actuary as defined in section 2(1) of Insurance Act, 1938”

4. Regulation No. 2(A) (iii) of IRDAI (Appointed Actuary) Regulations, 2022 stating the term ‘Appointed Actuary’ as

“Appointed Actuary means an actuary mentioned in the Regulation 3(A) of these Regulations.”

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

5. The term ‘Available Solvency Margin’ has been introduced under Regulation 3 (v) IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“ Available Solvency Margin ” means

(a) In case of a Life insurer, the excess of value of assets subject to admissibility criteria specified under these regulations, available in policyholders’ and shareholders’ funds over and above the value of mathematical reserves and other liabilities of policyholders’ and shareholders’ funds;

(b) In case of General insurer or Health insurer, the excess of value of assets subject to admissibility criteria specified under these regulations, available in policyholders’ and shareholders’ funds over and above the technical liabilities and other liabilities of policyholders’ and shareholders’ funds;

(c) In case of a reinsurer, the excess of value of assets subject to admissibility criteria specified under these regulations, available in policyholders’ and shareholders’ funds over and above the Mathematical reserves, technical liabilities and other liabilities of policyholders’ and shareholders’ funds

6. The term ‘Competent Authority’ has been introduced under Regulation 3 (vi) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“ Competent Authority ” means

(a) Chairperson or

(b) such whole-time member or such committee of the whole-time members or such officer (s) of

the Authority, as may be determined by the Chairperson.

7. The term ‘Mathematical reserves’ has been introduced under Regulation 3 (ix) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“ Mathematical reserves ” means the provisions determined in accordance with these regulations to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangement in relation to any policy whereby an amount is deposited by re-insurer with the cedant) arising under or in connection with policies or contracts of life (Re)insurance business which includes specific provision for adverse deviations of all the bases including but not limited to mortality and morbidity rates; lapse rates, interest rates and expenses; and any explicit provision made in the valuation of liabilities.

8. The term ‘Premium Deficiency Reserve (PDR)’ has been introduced under Regulation 3 (x) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“ Premium Deficiency Reserve (PDR) ” means the reserve held in excess of the unearned premium reserve, which allows for any expectation that the unearned premium reserve will be insufficient to cover the cost of claims and expenses incurred during the period of unexpired risk;

9. The term ‘Required Solvency Margin’ has been introduced under Regulation 3 (xi) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Required Solvency Margin” means the amount arrived in the manner as specified under Part III or Part IV or Part V of Schedule-I of these regulations as applicable subject to a minimum of fifty per cent of the amount of minimum capital as stated under section 6 of the Insurance Act, 1938.

10. The term ‘Solvency Ratio’ has been introduced under Regulation 3 (xi) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Solvency Ratio” means the ratio of the amount of Available Solvency Margin to the amount of Required Solvency Margin

11. The term ‘Technical Liabilities’ has been introduced under Regulation 3 (xiii) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Technical Liabilities” means the provisions determined in accordance with these regulations to cover liabilities arising under or in connection with policies or contracts of General (Re)insurance business or Health (Re)insurance Business which include specific provision for adverse deviations of all the bases of actuarial valuation.

12. The term ‘Unearned Premium Reserve (UPR)’ has been introduced under Regulation 3 (xiv) of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Unearned Premium Reserve (UPR)” means an amount representing that part of the premium written which is attributable and to be allocated to the succeeding accounting periods;

13. Principal Governing the Actuarial, Finance and Investment Functions of Insurers: Insurers have been advised to follow the below-mentioned principles:

Mathematical Reserves or Technical Liabilities shall be based on sound actuarial principles.
Solvency margin shall be ensured at least at the control level all times.
Financial statement shall reflect true and fair picture of the financial condition of the insurer.
Funds shall be invested such that the policyholders’ liabilities shall be met and when due.
Suitable and adequate resource shall be available to carry out actuarial, finance and investment functions.
Board Approved Policies of Insurer: To have a well-documented policy governing areas of actuarial, finance and investment functions approved by its Board on an annual basis, which shall be reviewed periodically by the Board. This regulation is applicable to all the insurers.

15. Schedule I – Actuarial Functions: Rules, processes, and formats with respect to Actuarial Functions including Appointment, Duties and Responsibilities of Actuary have been provided in Schedule I of the Regulation.

The term ‘Valuation date’ has been defined under point no. 1 (2) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Valuation date” means, in respect of any valuation, the date as at which the valuation is made.

The term ‘Ordinarily date’ has been defined under point no. 1 (3) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“ Ordinarily Resident in India” means a resident in India defined as per the Income Tax Act, 1961.

The term ‘Allocated Loss Adjustment Expenses’ has been defined under point no. 3 (1) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Allocated Loss Adjustment Expenses (ALAE)” are claim-related expenses that are directly attributable to a specific claim.

The term ‘Claim Reserves’ has been defined under point no. 3 (2) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Claim Reserves” means the reserves in respect of the claims which have already occurred as on the date of valuation.

The term ‘Incurred But Not Enough Reported (IBNER)’ has been defined under point no. 3 (3) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Incurred But Not Enough Reported (IBNER) Reserves” means the reserves reflecting the expected changes in the estimates of reported claims including ALAE, if any.

The term ‘Incurred But Not Enough Reported Claim (IBNR)’ has been defined under point no. 3 (4) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Incurred But Not Reported Claim (IBNR) Reserves” includes IBNER, estimate for reopened claims, provision for incurred but not reported claims, provision for claims in transit as on the date of valuation and ALAE.

The term ‘Outstanding Claim Reserves (OS Reserves)’ has been defined under point no. 3 (5) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Outstanding Claim Reserves (OS Reserves)” means the provision made in respect of all outstanding reported claims as on the date of valuation including ALAE.

The term ‘Unexpired Risk Reserves’ has been defined under point no. 3 (6) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Unexpired Risk Reserves” means the reserves in respect of the liabilities for unexpired risks and determined as the aggregate of Unearned Premium Reserve (UPR) and Premium Deficiency Reserve (PDR).

Sub-regulation (a) and (b) of Regulation 3 (B)(iii) of IRDAI (Appointed Actuary) Regulations, 2022 stating:

“a. At least 12 years of experience in the area of Life Insurance and out of which at least 7 years shall be post fellowship experience.

Provided, if the applicant has passed the Specialist Application or Specialist Advanced level subject in Life Insurance from Institute of Actuaries of India or from any other institute or body with which IAI has Mutual Recognition Agreement, the experience criteria including post fellowship experience criterion as mentioned in Regulation 3(B)(iii)(a) above shall be reduced by 2 years.

b. At least 3 years post fellowship experience out of 7 years or 5 years as applicable, as specified under Regulation 3B(iii)(a) shall be in the preparation or review of annual statutory valuation or product pricing of an Indian Life Insurer.”

has been modified under Part B, point 2(1)(iii)(a) and (b) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(a) At least 12 years of experience in the area of Life Insurance and out of which at least 7 years shall be post fellowship experience.

Provided, if the applicant has passed the Specialist Application or Specialist Advanced level subject in Life Insurance from Institute of Actuaries of India or from any other institute or body with which IAI has Mutual Recognition Agreement, the experience criteria including post fellowship experience criteria as mentioned in clause 2(1)(iii)(a) of Part II of Schedule-I of these above shall be reduced by 2 years.

(b) At least 3 years post fellowship experience out of 7 years or 5 years as applicable, as specified under clause 2(1)(iii)(a) of Part II of Schedule-I of these regulation shall be in the preparation or review of annual statutory valuation or product pricing of an Indian Life Insurer or Indian reinsurer reinsurer or foreign reinsurance branch established in India.”

Regulation 4 of IRDAI (Appointed Actuary) Regulations, 2022 stating:

“The insurer shall, within four weeks of rejection of the application referred to under Regulation 3(E), apply to the Authority under Regulation 3(D) for the appointment of a person as an Appointed Actuary other than the one rejected by it under Regulation 3 (E).”

has been modified under Part B, point 3 of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

The insurer shall, within four weeks of rejection of the application referred to under Regulation 2(5) of Part II of Schedule-I of these Regulations, apply to the Authority under Regulation 2(4) of Part II of Schedule-I of these Regulations for the appointment of an actuary as an Appointed Actuary other than the one rejected by it under Regulation 2(5) of Part II of Schedule-I of these Regulations.

Sub-regulation C of Regulation 6 of IRDAI (Appointed Actuary) Regulations, 2022 stating:

C. If a person ceases to be an Appointed Actuary of an insurer otherwise than on the grounds mentioned in Regulation 6(A), the insurer and the Appointed Actuary shall intimate the Authority the reasons there for within one week of such cessation.

has been modified under Part B, point 5 (3) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(3) If the Appointed Actuary makes formal intimation to the insurer to cease to be an Appointed Actuary of the insurer otherwise than on the grounds mentioned in clause 5(1) of Part II of Schedule-I of these regulations, the insurer and the Appointed Actuary shall intimate the Authority the reasons thereof within one week of the date of such intimation to the insurer.”

l. Point No. 1 and 2 of Schedule I of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 stating that:

“1. Valuation Of Assets

(1) The following assets should be placed with value zero:

(a) Agents’ and Intermediaries’ balances and outstanding premiums in India, to the extent they are not realized within a period of thirty days;

(b) Premiums receivables relating to State/Central government sponsored schemes, to the extent they are not realized within a period of 180 days;

(d) Sundry debts, to the extent they are not realizable;

(e) Advances and receivables of an unrealizable character;

(f) Furniture, fixtures, dead stock and stationery;

(g) Deferred expenses;

(h) Debit balance of Profit and loss appropriation account balance and any fictitious assets other than pre-paid expenses;

(i) Co-insurer’s balances outstanding for more than ninety days;

(j) Balances of Indian Reinsurers and Foreign Reinsurers having Branches in India outstanding for more than 365 days;

(k) Other Reinsurer’s balances outstanding for more than 180 days;

(l) Leasehold improvements

(m) Service Tax Unutilized Credit outstanding for more than ninety days;

(n) Any other assets, which are considered inadmissible under Section 64V of the Insurance Act, 1938.

(2) All other assets of a general insurer have to be valued in accordance with the Regulations and other instructions issued by the Authority regarding preparation of financial statements, auditor’s report, other forms of capital and

investments, and any other Regulations as applicable from time to time.”

have been modified under Part IV, point no. 2 of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

1. Valuation of Assets

All assets of a general insurers and standalone health insurers shall be valued in accordance with Schedule II Finance functions of these Regulations and other applicable Regulations including IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024, and applicable extant norms, except the following assets which shall be placed with value zero for

solvency margin computation:

(i) Agents’ and Intermediaries’ balances and outstanding premiums in India, to the extent they are not realized within a period of thirty days;

(ii) Premiums receivables relating to State/Central government sponsored schemes, to the extent they are not realized within a period of 365 days;

(iii) Agents’ and Intermediaries’ balances and outstanding premiums outside India, to the extent they are not realizable;

(iv) Sundry debts, to the extent they are not realizable;

(v) Advances and receivables of an unrealizable character;

(vi) Loans and advances as per Schedule – IV of these regulations;

(vii) Furniture, fixtures, dead stock and stationery;

(viii) Deferred expenses;

(ix) Debit balance of Profit and loss appropriation account balance and any fictitious assets other than pre-paid expenses;

(x) Co-insurer’s balances outstanding for more than ninety days;

(xi) Balances of Indian Reinsurers and Foreign Reinsurers having Branches in India outstanding for more than 365 days;

(xii) Reinsurer’s balances other than mentioned in point (x) above outstanding for more than 180 days;

(xiii) Leasehold improvements

(xiv) Goods and Services Tax (GST) Unutilized Credit outstanding for more than 120 days;

(xv) Seventy-five percent of the ‘Deferred Tax Asset’ other than that arising on account of “Accumulated losses”;

(xvi) ‘Deferred Tax Asset’ arising on account of “Accumulated losses”;

(xvii) Investments representing unclaimed amounts and investment income accrued or earned thereon;

(xviii) Any other assets to the extent not realisable.

m. Point No. 1 of Schedule II of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 stating that:

“ Unearned Premium Reserve (UPR):

UPR will be estimated as per the extant provisions and shall be certified by the Chief Financial Officer and the Statutory Auditor”

has been clarified under Part IV, point no. 2(i)(a) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

(2) Determination of Amount of Liabilities

(i) Unexpired Risk Reserves (URR):

(a) Unearned Premium Reserve (UPR):

A reserve for unearned premium shall be provided as the amount representing that part of the premium written which is attributable to and allocated to the succeeding accounting periods. UPR will be estimated as per clause 4 of Part II of Schedule- II of these regulations and shall be certified by the Chief Financial Officer and the Statutory Auditor.

Point No. 2 of Schedule II of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 stating that:

“The PDR shall be calculated using sound actuarial principles. Though the PDR shall be maintained at the insurer level, PDR on segmental basis would be monitored by the Authority for verifying the sustainability of products and accordingly an appropriate action may be taken by the Authority.”

has been modified under Part IV, point no. 2(i)(b) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(b) Premium Deficiency Reserve (PDR):

The PDR shall be calculated using sound actuarial principles. Though the PDR shall be maintained at the insurer level, PDR on segmental basis would be monitored for assessing the sustainability of products and maintaining at lines of business level. PDR as maintained at the insurer level shall be subject to minimum of zero value.

Premium deficiency shall be recognized if the sum of expected claim costs, expenses and maintenance costs exceeds related unearned premium reserve. Premium deficiency reserve shall be calculated and duly certified by an Appointed Actuary. ”

o. Point No. 3 of Schedule II of IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 stating that:

“3. Claims Reserve

(1) The Claims Reserve shall be determined as the aggregate amount of Outstanding Claims Reserve and Incurred but Not Reported Claims Reserve (IBNR) as described below for the following lines of business”

has been modified under Part IV, point no. 2(ii)(a) of Schedule I of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(2) Determination of Amount of Liabilities

(ii) Claims Reserve:

(a)The Claims Reserve shall be determined as the aggregate amount of Outstanding Claims Reserve, incurred but Not Reported Claims Reserve (IBNR) and incurred but not enough reported (IBNER) claim reserves as described below for the following lines of business. In case of FRB, the claims reserve may be arrived at aggregate level for each of Motor and Heath lines of business if the granular data is not available. ”

16. Schedule II – Finance Functions: Rules, processes, and formats with respect to Finance Functions including preparation of financial statements and management reports etc., have been provided under Schedule II of the Regulation.

a. Regulation No. 6 of IRDAI (Preparation of Financial statements and Auditor’s Report of Insurance Companies) Regulations, 2002 stating that:

“6. Procedure to determine the value of investments – An insurer shall determine the values of investments in the following manner: –

(1) Real Estate – Investment Property- Investment Property shall be measured at historical cost less accumulated depreciation and impairment loss, residual value being considered zero and no revaluation being permissible.

The Insurer shall assess at each balance sheet date whether any impairment of the investment property has occurred.

An impairment loss shall be recognized as an expense in the Revenue/ Profit and Loss Account immediately.

Fair value as at the balance sheet and the basis of its determination shall be disclosed in the financial statements as additional information.

b) Debt Securities – Debt securities including government securities and redeemable preference shares shall be considered as “held to maturity” securities and shall be measured at historical cost subject to amortisation.

c) Equity Securities and Derivative Instruments that are traded in active markets. – Listed equity securities and derivative instruments that are traded in active markets shall be measured at fair value as at the balance sheet date. For the purpose of calculation of fair value, the lowest of the last quoted closing price of the stock exchanges where the securities are listed shall be taken.

The insurer shall assess on each balance sheet date whether any impairment of listed equity security(ies)/derivative(s) instruments has occurred.

An active market shall mean a market, where the securities traded are homogenous, availability of willing buyers and willing sellers is normal and the prices are publicly available.

Unrealised gains/losses arising due to changes in the fair value of listed equity shares and derivative instruments shall be taken to equity under the head “Fair Value Change Account”. The “Profit on sale of investments” or “Loss on sale of investments”, as the case may be, shall include accumulated changes in the fair value previously recognised in equity under the heading Fair Value Change Account in respect of a particular security and being recycled to Profit and Loss Account on actual sale of that listed security.

For the removal of doubt, it is clarified that balance or any part thereof shall not be available for distribution as dividends. Also, any debit balance in the said Fair Value Change Account shall be reduced from the profits/free reserves while declaring dividends.

The insurer shall assess, at each balance sheet date, whether any impairment has occurred. An impairment loss shall be recognised as an expense in Revenue/Profit and Loss Account to the extent of the difference between the remeasured fair value of the security/investment and its acquisition cost as reduced by any previous impairment loss recognised as expense in Revenue/Profit and Loss Account. Any reversal of impairment loss, earlier recognised in Revenue/Profit and Loss Account shall be recognised in Revenue/Profit and Loss Account.

d) Unlisted and other than actively traded Equity Securities and Derivative Instruments – Unlisted equity securities and derivative instruments and listed equity securities and derivative instruments that are not regularly traded in active market will be measured at historical costs. Provision shall be made for diminution in value of such investments. The provision so made shall be reversed in subsequent periods if estimates based on external evidence show an increase in the value of the investment over its carrying amount. The increased carrying amount of the investment due to the reversal of the provision shall not exceed the historical cost.

For the purposes of this regulation, a security shall be considered as being not actively traded, if as per guidelines governing mutual funds laid down from time to time by SEBI, such a security is classified as “thinly traded”.”

has been modified under Part II, point no. 9 of Schedule II of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“9. Procedure to determine the value of investments. – An insurer shall determine the values of investments in the following manner: –

(1) Real Estate – Investment Property- The value of investment property shall be determined at historical cost, subject to revaluation at least once in every three years. The change in the carrying amount of the investment property shall be taken to Revaluation Reserve.

The insurer shall assess at each balance sheet date whether any impairment of the investment property has occurred.

Gains/losses arising due to changes in the carrying amount of real estate shall be taken to equity under ‘Revaluation Reserve’. The ‘Profit on sale of investments’ or ‘Loss on sale of investments’, as the case may be, shall include accumulated changes in the carrying amount previously recognised in equity under the heading ‘Revaluation Reserve’ in respect of a particular property and being recycled to the relevant Revenue Account or Profit and Loss Account on sale of that property.

The bases for revaluation shall be disclosed in the notes to accounts.

An impairment loss shall be recognised as an expense in the Revenue/Profit and Loss Account immediately, unless the asset is carried at re-valued amount. Any impairment loss of a re-valued asset shall be treated as a revaluation decrease of that asset and if the impairment loss exceeds the corresponding revaluation reserve, such excess shall be recognised as an expense in the Revenue/Profit and Loss Account.

(2) Debt Securities – Debt securities including government securities and redeemable preference shares shall be considered as “held to maturity” securities and shall be measured at historical cost subject to amortisation.

(3) Equity Securities and Derivative Instruments that are traded in active markets. – Listed equity securities and derivative instruments that are traded in active markets shall be measured at fair value as at the balance sheet date. Measurement for the purpose of calculation of fair value shall be the last quoted closing price on NSE. However, in case of any stock not being listed in NSE, the insurer may value the Equity based on the last quoted closing price in BSE.

The insurer shall assess on each balance sheet date whether any impairment of listed equity security(ies)/derivative(s) instruments has occurred.

An active market shall mean a market, where the securities traded are homogenous, availability of willing buyers and willing sellers is normal and the prices are publicly available.

The insurer shall assess, at each balance sheet date, whether any impairment has occurred. An impairment loss (i.e. other than temporary diminution in value) shall be recognised as an expense in Revenue/Profit and Loss Account to the extent of the difference between the remeasured fair value of the security/investment and its acquisition cost as reduced by any previous impairment loss recognised as expense in Revenue/Profit and Loss Account. Any reversal of impairment loss, earlier recognised in Revenue/Profit and Loss Account shall be recognised in Revenue/Profit and Loss Account.

Insurer shall disclose its policy on recognition of impairment in notes to account.

(4) Unlisted and other than actively traded Equity Securities and Derivative Instruments – Unlisted equity securities and derivative instruments and listed equity securities and derivative instruments that are not regularly traded in active market will be measured at historical costs. Provision shall be made for diminution in value of such investments. The provision so made shall be reversed in subsequent periods if estimates based on external evidence show an increase in the value of the investment over its carrying amount. The increased carrying amount of the investment due to the reversal of the provision shall not exceed the historical cost.

(5) Loans:

Loans shall be measured at historical cost subject to impairment provisions. The insurer shall assess the quality of its loan assets and shall provide for impairment. The impairment provision shall not be lower than the amounts derived on the basis of guidelines prescribed from time to time by the Reserve Bank of India, that apply to companies and financial institutions.

(6) Catastrophe Reserve:

Catastrophe reserve shall be created in accordance with norms, as specified. Investment of funds out of catastrophe reserve shall be made in accordance with prescriptions, as specified. ”

b. Part II of IRDAI (Preparation of Financial statements and Auditor’s Report of Insurance Companies) Regulations, 2002 stating that:

“Part II

Disclosures Forming Part of Financial Statements-

A. The following shall be disclosed by way of notes to the Balance-Sheet, –

1. Contingent Liabilities:

(a) Partly-paid up investments

(b) Underwriting commitments outstanding

(d) Guarantees given by or on behalf of the company

(e) Statutory demands/liabilities in dispute, not provided for

(f) Reinsurance obligations to the extent not provided for in accounts

(g) Others (to be specified)

2. Encumbrances to assets of the company in and outside India.

3. Commitments made and outstanding for Loans, Investments and Fixed Assets.

4. Claims, less reinsurance, paid to claimants in/outside India.

5. Actuarial assumptions for determination of claim liabilities in the case of claims where the claims payment period exceeds four years.

6. Ageing of claims – distinguishing between claims outstanding for more than six months and other claims.

7. Premiums, less reinsurance, written from business in/outside India.

8. Extent of premium income recognised, based on varying risk pattern, category wise, with basis and justification therefor, including whether reliance has been placed on external evidence.

9. Value of contracts in relation to investments, for-

(a) Purchases where deliveries are pending;

(b) Sales where payments are overdue.

10. Operating expenses relating to insurance business: basis of allocation and apportionment of expenditure to various classes of business.

11. Historical costs of those investments valued on fair value basis.

12. Computation of managerial remuneration.

13. Basis of amortisation of debt securities.

14. (a) Unrealised gain/losses arising due to changes in the fair value of listed equity shares and derivative instruments are to be taken to equity under the head “Fair Value Change Account” and on realisation reported in profit and loss Account.

(b) Pending realisation, the credit balance in the “Fair Value Change Account” is not available for distribution.

15. Fair value of investment property and the basis therefor.

16. Claims settled and remaining unpaid for a period of more than six months as on the balance sheet date.

B. The following accounting policies shall form an integral part of the financial statements:

(i) All significant accounting policies in terms of the accounting standards, and significant principles and policies given in Part I of Accounting Principles. Any other accounting policies followed by the insurer shall be stated in the manner required under Accounting Standard AS 1 issued by the ICAI

(ii) Any departure from the accounting policies as aforesaid shall be separately disclosed with reasons for such departure.

C. The following information shall also be disclosed:

1. Investments made in accordance with any statutory requirement should be disclosed separately together with its amount, nature, security and any special rights in and outside India;

2. Segregation into performing/non-performing investments for purpose of income recognition as per the directions, if any, issued by the Competent Authority;

3. Percentage of business sector-wise;

4. A summary of financial statements for the last five years, in the manner us may he prescribed by the Authority.

5. Accounting ratios as may be prescribed by the Authority

6. Basis of allocation of Interest, Dividends and Rent between Revenue Account and Profit and Loss Account.”

has been modified under Part II, point no. 10 of Schedule II of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“10. Disclosures Forming Part of Financial Statements-

(1) The following shall be disclosed by way of notes to the Balance-Sheet, –

(i) Contingent Liabilities:

(a) Partly-paid up investments

(b) Underwriting commitments outstanding

(d) Guarantees given by or on behalf of the company

(e) Statutory demands/liabilities in dispute, not provided for

(f) Reinsurance obligations to the extent not provided for in accounts

(g) Others (to be specified)

(ii) Encumbrances to assets of the company in and outside India.

(iii) Commitments made and outstanding for Loans, Investments and Fixed Assets.

(iv) Claims, less reinsurance, paid to claimants in/outside India.

(v) Actuarial assumptions for determination of claim liabilities in the case of claims where the claims payment period exceeds four years.

(vi) Ageing of claims – distinguishing between claims outstanding for more than six months and other claims.

(vii) Premiums, less reinsurance, written from business in/outside India.

(viii) Extent of premium income recognised, based on varying risk pattern, category wise, with basis and justification therefor, including whether reliance has been placed on external evidence.

(ix) Value of contracts in relation to investments, for-

(a) Purchases where deliveries are pending;

(b) Sales where payments are overdue.

(x) Operating expenses relating to insurance business: basis of allocation and apportionment of expenditure to various classes of business.

(xi) Historical costs of those investments valued on fair value basis.

(xii) Computation of managerial remuneration.

(xiii) Basis of amortisation of debt securities.

(xiv) (a) Unrealised gain/losses arising due to changes in the fair value of listed equity shares and derivative instruments are to be taken to equity under the head “Fair Value Change Account” and on realisation reported in profit and loss Account.

(b) Pending realisation, the credit balance in the “Fair Value Change Account” is not available for distribution.

(xv)Fair value of investment property and the basis therefor.

(xvi) Claims settled and remaining unpaid for a period of more than six months as on the balance sheet date.

(xvii) Provisions made for policy cancellations during free look period in current year and previous year duly certified by the appointed actuary

(xviii) Basis of computation of premium deficiency

(2) The following accounting policies shall form an integral part of the financial statements:

(ii) Any departure from the accounting policies as aforesaid shall be separately disclosed with reasons for such departure.

(3) The following information shall also be disclosed:

(i) Investments made in accordance with any statutory requirement should be disclosed separately together with its amount, nature, security and any special rights in and outside India;

(ii) Segregation into performing/non-performing investments for purpose of income recognition as per the directions, if any, issued by the Competent Authority;

(iii) Percentage of business sector-wise;

(iv) Basis of allocation of Interest, Dividends and Rent between Revenue Account and Profit and Loss Account.

(v) A summary of financial statements for the last five years, in the manner us may he prescribed by the Authority.

(vi) Accounting ratios as may be prescribed by the Authority

(v) Disclosure of policy and principles for provisioning for policy cancellations during free look period, based on assumptions and experience, duly certified by the appointed actuary.

(vi) Any other information as may be specified.”

c. Part III, point no. 11 of IRDAI (Preparation of Financial statements and Auditor’s Report of Insurance Companies) Regulations, 2002 stating that:

“11. GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS

1) The corresponding amounts for the immediately preceding financial year for all items shown in the Balance Sheet, Revenue Account and Profit and Loss Account should be given.

2) The figures in the financial statements may be rounded off to the nearest thousands.

3) Interest, dividends and rentals receivable in connection with an investment should be stated as gross value, the amount of income tax deducted at source being included under “advance taxes paid”.

4) Income from rent shall not include any notional rent.

5) (I) For the purposes of financial statements, unless the context otherwise requires, –

(a) the expression “provision” shall, subject to note II below mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing for any known liability or loss of which the amount cannot be determined with substantial accuracy;

(b) the expression “reserve” shall not, subject to as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability;

(c) the expression “capital reserve” shall not include any amount regarded as free for distribution through the profit and loss account; and the expression “revenue reserve” shall mean any reserve other than a capital reserve;

(d) The expression “liability” shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.

(II) Where:

(a) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or

(b) any amount retained by way of providing for any known liability is in excess of the amount which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of these accounts as a reserve and not as a provision.

6) The company should make provisions for damages under lawsuits where the management is of the opinion that the award may go against the insurer.

7) Extent of risk retained and reinsured shall be separately disclosed.

8) Any debit balance of Profit and Loss Account shall be shown as deduction from uncommitted reserves and the balance if any, shall be shown separately.”

has been modified under Part II, point no. 11 of Schedule II of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“11. GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS

(1) The corresponding amounts for the immediately preceding financial year for all items shown in the Balance Sheet, Revenue Account and Profit and Loss Account should be given.

(2) The figures in the financial statements may be rounded off to the nearest lakhs.

(3) Interest, dividends and rentals receivable in connection with an investment should be stated as gross value, the amount of income tax deducted at source being included under “advance taxes paid”.

(4) Income from rent shall not include any notional rent.

(5) For the purposes of financial statements, unless the context otherwise requires, –

(i) the expression “provision” shall, subject to note (v) below mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing for any known liability or loss of which the amount cannot be determined with substantial accuracy;

(ii) the expression “reserve” shall not, subject to as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability;

(iii) the expression “capital reserve” shall not include any amount regarded as free for distribution through the profit and loss account; and the expression “revenue reserve” shall mean any reserve other than a capital reserve;

(iv) The expression “liability” shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.

(v) Where:

(a) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or

(6) The company should make provisions for damages under lawsuits where the management is of the opinion that the award may go against the insurer.

(7) Extent of risk retained and reinsured shall be separately disclosed.

(8) Any debit balance of Profit and Loss Account shall be shown as deduction from uncommitted reserves and the balance if any, shall be shown separately.

(9) All insurers are required to maintain separate investment accounts for the shareholders and the policy holders and the income/ losses accrued / capital gains/losses on the investments is to be credited /debited to the Revenue Account/ Profit & Loss Account, as the case may be.”

d. Part IV of IRDAI (Preparation of Financial statements and Auditor’s Report of Insurance Companies) Regulations, 2002 stating that:

Part IV

CONTENTS OF MANAGEMENT REPORT-

There shall be attached to the financial statements, a management report containing, inter alia, the following duly authenticated by the management: –

1) Confirmation regarding the continued validity of the registration granted by the Authority;

2) Certification that all the dues payable to the statutory authorities have been duly paid;

3) Confirmation to the effect that the shareholding pattern and any transfer of shares during the year are in accordance with the statutory or regulatory requirements;

4) Declaration that the management has not directly or indirectly invested outside India the funds of the holders of policies issued in India;

5) Confirmation that the required solvency margins have been maintained;

6) Certification to the effect that the values of all the assets have been reviewed on the date of the Balance Sheet and that in his (insurer’s) belief the assets set forth in the Balance-sheets are shown in the aggregate at amounts not exceeding their realisable

or market value under the several headings – “Loans”, “Investments”, “Agents balances”, “Outstanding Premiums”, “Interest, Dividends and Rents outstanding”, “Interest, Dividends and Rents accruing but not due”, “Amounts due from other persons or Bodies carrying on insurance business”, ” Sundry Debtors”, “Bills Receivable”, “Cash” and the several items specified under “Other Accounts”;

7) Disclosure with regard to the overall risk exposure and strategy adopted to mitigate the same;

8) Operations in other countries, if any, with a separate statement giving the management’s estimate of country risk and exposure risk and the hedging strategy adopted;

9) Ageing of claims indicating the trends in average claim settlement time during the preceding five years;

10) Certification to the effect as to how the values, as shown in the balance sheet, of the investments and stocks and shares have been arrived at, and how the market value thereof has been ascertained for the purpose of comparison with the values so shown;

11) Review of asset quality and performance of investment in terms of portfolios, i.e., separately in terms of real estate, loans, investments, etc.

12) A responsibility statement indicating therein that-

(i) in the preparation of financial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;

(ii) the management has adopted accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the operating profit or loss and of the profit or loss of the company for the year;

(iii) the management has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the applicable provisions of the Insurance Act 1938 (4 of 1938)/Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) the management has prepared the financial statements on a going concern basis;

(v) the management has ensured that an internal audit system commensurate with the size and nature of the business exists and is operating effectively.

13) A schedule of payments, which have been made to individuals, firms, companies and organizations in which Directors of the insurer are interested.

has been modified under Part II, point no. 12 of Schedule II of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“12. Contents of Management Report-There shall be attached to the financial statements, a management report containing, inter alia, the following duly authenticated by the management: –

(1) Confirmation regarding the continued validity of the registration granted by the Authority;

(2) Certification that all the dues payable to the statutory authorities have been duly paid;

(3) Confirmation to the effect that the shareholding pattern and any transfer of shares during the year are in accordance with the statutory or regulatory requirements;

(4) Declaration that the management has not directly or indirectly invested outside India the funds of the holders of policies issued in India;

(5) Confirmation that the required solvency margins have been maintained;

(6) Certification to the effect that the values of all the assets have been reviewed on the date of the Balance Sheet and that in his (insurer’s) belief the assets set forth in the Balance-sheets are shown in the aggregate at amounts not exceeding their realisable or market value under the several headings – “Loans”, “Investments”, “Agents balances”, “Outstanding Premiums”, “Interest, Dividends and Rents outstanding”, “Interest, Dividends and Rents accruing but not due”, “Amounts due from other persons or Bodies carrying on insurance business”, ” Sundry Debtors”, “Bills Receivable”, “Cash” and the several items specified under “Other Accounts”;

(7) Disclosure with regard to the overall risk exposure and strategy adopted to mitigate the same;

(8) Operations in other countries, if any, with a separate statement giving the management’s estimate of country risk and exposure risk and the hedging strategy adopted;

(9) Ageing of claims indicating the trends in average claim settlement time during the preceding five years;

(10) Certification to the effect as to how the values, as shown in the balance sheet, of the investments and stocks and shares have been arrived at, and how the market value thereof has been ascertained for the purpose of comparison with the values so shown;

(11) Review of asset quality and performance of investment in terms of portfolios, i.e., separately in terms of real estate, loans, investments, etc.

(12) A responsibility statement indicating therein that-

(i) in the preparation of financial statements, the applicable accounting standards, principles and policies have been followed along with proper explanations relating to material departures, if any;

(iv) the management has prepared the financial statements on a going concern basis;

(v) the management has ensured that an internal audit system commensurate with the size and nature of the business exists and is operating effectively.

(13) A schedule of payments, which have been made to individuals, firms, companies and organizations in which Directors of the insurer are interested.

(14) Confirmation of compliance with domestic, statutory, regulatory and other laws in the countries in relation to subsidiaries, associates, joint ventures and other arrangements.

(15) Any other information as may be specified.”

e. Part V of IRDAI (Preparation of Financial statements and Auditor’s Report of Insurance Companies) Regulations, 2002 stating that:

“Part V

Preparation of Financial Statements

(1) An insurer shall prepare the Revenue Account, Profit and Loss Account [Shareholders’ Account] and the Balance Sheet in Form B-RA, Form B-PL, and Form B-BS, or as near thereto as the circumstances permit.

Provided that an insurer shall prepare Revenue Account separately for fire, marine and miscellaneous insurance business and separate schedules shall be prepared for Marine Cargo, Marine –Other than Marine Cargo and the following classes of miscellaneous insurance business under miscellaneous insurance and accordingly application of AS 17- Segment reporting shall stand modified.

1. Motor 2. Workmen’s Compensation/Employers’ Liability 3. Public/ Product Liability 4. Engineering 5. Aviation 6. Personal Accident 7. Health Insurance 8. Others

(2) An insurer shall prepare separate Receipts and Payment Account in accordance with the Direct Method prescribed in AS 3-“Cash Flow Statement” issued by the ICAI.”

has been modified under Part II, point no. 13 of Schedule II of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“13. Preparation of Financial Statements

In addition, in respect of miscellaneous business, separate Schedules shall be furnished for the following at the minimum:

(i) Under Motor:- sub-segments (a) Motor Own Damage and (b) Motor TP,

(ii) Under Health:– sub-segments (a) Health , (b) Personal Accident and (c) Travel,

(iii) Workmen’s Compensation/ Employer’s liability,

(iv) Public/ Product Liability,

(v) Engineering,

(vi) Aviation,

vii) Crop,

(viii) Any other sub-segment contributing more than 10% of the total gross direct premium of the insurer shall be shown separately.

(ix) Others.

(x) Any other segment as may be specified.

(2) Segments to be reported on the basis of line of business, and on the basis of business within and outside India. While giving the segment details previous year’s figures should also be given for all the segments.

(3) An insurer shall prepare separate Receipts and Payments Account in accordance with the Direct Method prescribed in AS 3 – “Cash Flow Statement” issued by the ICAI.

Minor modifications in the prescribed Forms along with respective Schedules.

FORMS:

1) FORM B-RA for Fire Segment

2) FORM B-RA for Marine Segment

3) FORM B-RA for Miscellaneous Segment

4) FORM B-RA for Company (Total)

5) FORM B-PL

6) FORM B-BS

SCHEDULES:

1) SCHEDULE 1- Premium Earned [Net];

2) SCHEDULE 2- Claims Incurred [Net];

3) SCHEDULE 3- Commission;

4) SCHEDULE 4- Operating Expenses related to insurance business;

5) SCHEDULE 5- Share Capital

6) SCHEDULE 5A- Pattern of Shareholding

7) SCHEDULE 6- Reserves and Surplus

8) SCHEDULE 6A- Head Office Account

9) SCHEDULE 7- Borrowings

10) SCHEDULE 8 and 8A- Investment (Shareholders) and Investment (Policyholders)

11) SCHEDULE 9- Loans

12) SCHEUDLE 10- Fixed Assets

13) SCHEDULE 11- Cash and Bank Balances

14) SCHEDULE 12- Advances and other assets

15) SCHEDULE 13- Current Liabilities

16) SCHEDULE 14- Provisions

17) SCHEDULE 15- Miscellaneous Expenditure (To the extent not written off or adjusted)”

17. Schedule III – Investment Functions: Rules, processes, and formats with respect to Investment Functions such as Money Market Instrument, Approved Investments etc., have been provided under Schedule III of the Regulation. Every insurer shall constitute an Investment Committee with a composition as mentioned in the Corporate Governance Regulations and Circulars issued thereon by the Authority from time to time and draw up, a Board approved Investment Policy.

a. The term ‘Housing Finance Company’ has been defined under Part I, point no. 1 (5) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 stating that:

“Housing Finance Company” shall have the meaning assigned to it by the RBI, as amended from time to time.

b. Regulation 2(h) of IRDAI (Investment) Regulations, 2016 stating that:

““Infrastructure facility” means, the ‘Harmonized Master list of Infrastructure sub-sectors’ as per Gazette Notification Dt. 14th October, 2014 of Department of Economic Affairs, as amended from time to time, and shall also include the following:

1. a road, including toll road, a bridge or a rail system;

2. a highway project including other activities being an integral part of the highway project;

3. a port, airport, inland waterway or inland port and associated railway sidings;

4. a water supply project, irrigation project, water treatment system, sanitation and sewerage system or solid waste

management system;

5. telecommunication services whether basic or cellular, including radio paging, domestic satellite service (i.e., a satellite owned and operated by an Indian company for providing telecommunication service), network of trunking, broadband network and internet services;

6. an industrial park or special economic zone;

7. generation or generation and distribution of power (both conventional and non-conventional);

8. transmission or distribution of power by laying a network of new transmission or distribution lines including telecom towers;

9. construction relating to projects involving agro-processing and supply of inputs to agriculture;

10. construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality;

11. construction of educational institutions and hospitals”

has been modified under Part I, point no.1(6) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Infrastructure facility” means, the ‘Harmonized Master list of Infrastructure sub-sectors’ as per Gazette Notification Dt. October 11, 2022 of Department of Economic Affairs, as amended from time to time.

c. Regulation 2(j) of IRDAI (Investment) Regulations, 2016 stating that:

“Money Market Instruments shall comprise of Short term investments with maturity not more than one year comprising of the following instruments:

1. Certificate of deposit rated by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations, 1999

2. Commercial paper rated by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations, 1999

3. Reverse Repo

4. Treasury Bills (including Cash Management Bills)

5. Call, Notice, Term Money

6. CBLO (Collateralized Borrowing & Lending Obligations) as per Schedules I and II of these Regulations.

7. Any other instrument as may be prescribed by the Authority”

has been modified under Part I, point no.1(8) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Money Market Instruments shall comprise of Short term investments with maturity not more than one year comprising of the following instruments:

1. Certificate of deposit rated by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations, 1999

2. Commercial paper rated by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations, 1999

3. Reverse Repo

4. Treasury Bills (including Cash Management Bills)

5. Call, Notice, Term Money

6. CBLO (Collateralized Borrowing & Lending Obligations) as per Schedules I and II of these Regulations.

7. Tri-party Repos (TREPs)

8. Any other instrument as may be prescribed by the Authority”

d. Schedule II (c) of IRDAI (Investment) Regulations, 2016 stating that:

“Shareholders’ funds comprise of Share Capital plus all Reserves and Surplus (except Revaluation Reserve and fair value change account) as at the Balance Sheet date, represented by investments of funds held in business beyond solvency margin”

has been modified under Annexure INV-II (C) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Shareholders’ Funds” means Share Capital plus all Reserves and Surplus (except Revaluation Reserve and fair value change account) net of accumulated losses and miscellaneous expenditure to the extent not written off as at the Balance Sheet date, represented by investments of funds held in business beyond solvency margin.

e. Regulation 2 (k), (l), and (m) of IRDAI (Investment) Regulations, 2016 stating that:

“(k) “Promoter” means a promoter as defined under Regulation 2 (1) (x) of IRDAI (Issuance of Capital by Indian Insurance Companies transacting life insurance business) Regulations

(l) “Principal Officer” means any person connected with the management of an insurer or any other person upon whom the Authority has served notice of its intention of treating him as the principal officer thereof.

(m) All words and expressions used herein and not defined but defined in the Act or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or in any Rules or Regulations made thereunder, shall have the meanings respectively assigned to them in those Acts or Rules or Regulations”

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

f. Regulation 3 (a) of IRDAI (Investment) Regulations, 2016 stating that:

“a) No insurer shall invest or keep invested any part of its Controlled Fund, as defined under Sec 27A / Assets as defined under Sec 27 (2) of the Act, read together with Sec 27E of the Act, otherwise than in approved securities, as per Section 2(3) of Insurance Act, 1938, as amended from time to time and in any of the following approved investments,

namely:—

1. debentures secured by a first charge on any immoveable property plant or equipment of any company which has paid interest in full

2. debentures secured by a first charge on any immovable property, plant or equipment of any company where either the book value or the market value, whichever is less, of such property, plant or equipment is more than three times the value of such debentures

3. first debentures secured by a floating charge on all its assets of any company which has paid dividends on its equity shares

4. preference shares of any company which has paid dividends on its equity shares for at least two consecutive years immediately preceding

5. equity shares of any listed company on which not less than ten percent dividends have been paid for at least two consecutive years immediately preceding

6. immovable property situated in India, provided that the property is free of all encumbrances;

7. loans on policies of life insurance within their surrender values issued by him or by an insurer whose business he has acquired and in respect of which business he has assumed liability;

8. Fixed Deposits with banks included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) and;

such other investments as the Authority may, by notification in the Official Gazette, declare to be Approved Investments.”

has been modified under Part II, point no. 2 (1) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(3) No insurer shall invest or keep invested any part of its Controlled Fund, as defined under Sec 27A / Assets as defined under Sec 27 (2) of the Act, read together with Sec 27E of the Act, otherwise than in approved securities, as per Section 2(3) of Insurance Act, 1938, as amended from time to time and in any of the following approved investments, namely: —

(i) debentures secured by a first charge on any immovable property, plant or equipment of any company which has paid interest in full without any default

(ii) debentures secured by a first charge on any immovable property, plant or equipment of any company where either the book value or the market value, whichever is less, of such property, plant or equipment is more than three times the value of such debentures;

(iii) first debentures secured by a floating charge on all its assets of any company which has paid dividends on its equity shares for at least 2 financial years out of immediately preceding 3 consecutive financial years;

(iv) preference shares of any company which has paid dividends on its equity shares for at least 2 financial years out of immediately preceding 3 consecutive financial years;

(v) equity shares of any listed and actively traded company on which not less than ten percent dividends have been paid for at least 2 financial years out of immediately preceding 3 consecutive financial years;

(vi) immovable property situated in India, provided that the property is free of all encumbrances;

(vii) loans on policies of life insurance within their surrender values issued by him or by an insurer whose business he has acquired and in respect of which business he has assumed liability;

(viii) Fixed Deposits with banks included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); and such other investments as the Authority may, by notification in the Official Gazette, declare to be Approved Investments.”

g. Regulation 3 (b)(4) of IRDAI (Investment) Regulations, 2016 stating that:

Collateralized Borrowing & Lending Obligations (CBLO) created by the Clearing Corporation of India Ltd and recognized by the Reserve Bank of India and exposure to Gilt, G Sec and liquid mutual fund forming part of Approved Investments as per Mutual Fund Guidelines issued under these regulations and money market instrument / investment.

has been modified under Part II, point no. 2 (2) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

Asset Backed Securities/ Pass through Certificates(PTCs) with underlying Housing loans or having infrastructure assets as underlying as defined under “infrastructure facility” in clause 1(6) of the Schedule III to Regulation 6(3) of IRDAI (Actuarial, Finance and Investment) Regulations, 2024, as amended from time to time.

h. Regulation 8 (v) of IRDAI (Investment) Regulations, 2016 stating that:

“Without prejudice to Sections 10 (2AA), 27, or 27B of the Act and any provisions of these regulations, an insurer carrying on the business of General Insurance including an insurer carrying on the business of re-insurance or health insurance shall invest and at all times keep invested its investment assets in the manner set out below:

No.

Type of Investment

Percentage of Investment Assets

(v)

Housing and loans to State Government for Housing and Fire Fighting equipment, by way of subscription or purchase of:

A. Investments in Housing

a. Bonds / Debentures issued by HUDCO, National Housing Bank

b. Bonds / debentures of Housing Finance Companies either duly

accredited by National Housing Bank, for house building activities, or duly guaranteed by Government or carrying current rating of not less than ‘AA’ by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations,1999

c. Asset Backed Securities with underlying Housing loans, satisfying the norms specified in the Guidelines issued under

these regulations from time to time.

B. Investment in Infrastructure (Explanation: Subscription or purchase of Bonds/ Debentures, Equity and Asset Backed Securities with underlying infrastructure assets would qualify for the purpose of this requirement.

‘Infrastructure facility’ shall have the meaning as given in Regulation 2 (h) as amended from time to time.

Note: Investments made under category (i) and (ii) above may be considered as investment in housing or infrastructure, as the case may be, provided the respective government issues such a security specifically to meet the needs of any of the sectors specified as ‘infrastructure facility’

Total Investment in housing and infrastructure (i.e.,)

investment in categories (i), (ii), (iii) and (iv) above

taken together shall not be less than 15% of the

Investment Assets

has been modified under Part II, point no. 7 of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Without prejudice to Sections 10 (2AA), 27, or 27B of the Act and any provisions of these regulations, an insurer carrying on the business of General Insurance including an insurer carrying on business of re-insurance or health insurance shall invest and at all times keep invested its investment assets in the manner set out below:

No.

Type of Investment

Percentage of Investment Assets

(v)

Housing and loans to State Government for Housing and Fire Fighting equipment, by way of subscription or purchase of:

A. Investments in Housing

a. Bonds / debentures of National Housing Bank & HUDCO and Equity of HUDCO

b. Bonds / debentures of Housing Finance Companies either duly accredited by National Housing Bank, for house building activities, or duly guaranteed by Government or carrying current rating of not less than ‘AA’ by a credit rating agency registered under SEBI (Credit Rating Agencies) Regulations, 1999 and equity shares of any actively traded Housing Finance Company on which not less than ten percent dividends have been paid for at least 2 Financial years out of immediately preceding 3 consecutive Financial years.

c. Asset Backed Securities with underlying Housing loans, satisfying the norms specified in the Guidelines issued under these regulations from time to time.

B. Investment in Infrastructure

d. Explanation: Subscription or purchase of Bonds/ Debentures, Equity and Asset Backed Securities with underlying infrastructure assets would qualify for the purpose of this requirement.

e. ‘Infrastructure facility’ shall have the meaning as given in Clause 1(6) as amended from time to time.

Total Investment in housing and infrastructure (i.e.,) investment in categories (i), (ii), (iii) and (iv) above taken together shall not be less than 15% of the Investment Assets

i. Regulation 8(4) of IRDAI (Investment) Regulations, 2016 stating that:

“Corporate bonds or debentures rated not less than AA or its equivalent and A1 or equivalent ratings for short term bonds, debentures, certificate of deposit and commercial paper, by a credit rating agency, registered under SEBI (Credit Rating Agencies) Regulations, 1999 would be considered as ‘Approved Investments’”

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

j. New Provision under Part II, point no. 7 of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 has been inserted as:

“Infrastructure Investments rated not less than A along with Expected Loss Rating of EL1 would be considered as approved investment.”

k. Regulation 8(7) of IRDAI (Investment) Regulations, 2016 stating that:

“Investments in equity shares listed on a registered stock exchange should be made in actively traded and liquid instruments viz., equity shares other than those defined as thinly traded as per SEBI Regulations and guidelines governing mutual funds issued by SEBI from time to time.”

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

l. Regulation 9(B) of IRDAI (Investment) Regulations, 2016 stating that:

The maximum exposure limit for a single ‘investee’ company (equity, debt and other investments taken together) from all investment assets under point (A.1.a, A.1.b, A.1.c all taken together), (A.2), (A.3) and (A.4) mentioned above, shall not exceed the lower of the following;

(i) an amount of 10% of investment assets as under Regulation 2 (i) (1), Regulation 2 (i) (2) excluding fair value change of investment assets under Regulation 4 (a), 4 (b) and Regulation 2(i)

(ii) an aggregate of amount calculated under point (a) and (b) of the following table:

Type of Investment

Limit for ‘Investee’ Company (2)

Limit for the entire Group of the Investee Company (3)

Limit for Industry Sector to which Investee Company belongs (4)

a. Investment in ‘Equity’,

Preference Shares,

Convertible Debentures

10% * of Outstanding Equity

Shares (Face Value )

10% of the amount under

point A.1.(a) or A.1.(b) or

A.1.(c) [segregated fund]

above considered separately

in the case of Life insurers /

amount under A.2 or A.3 or

A.4 in the case of General

Insurer including an insurer

carrying on business of reinsurance

or health

insurance

whichever is lower

Not more than 15% of the amount

under point A.1.(a) or A.1.(b) or

A.1.(c) or A.2 or A.3 or A.4

Exposure to Investments made in

companies belonging to Promoter

Group shall be made as per Point 7

under notes to Regulation 9

Investment by the insurer in

any industrial sector should

not exceed 15% of the amount

under point A.1.(a) or A.1.(b)

or A.1.(c) or A.2 or A.3 or

A.4

Note: Industrial Sector shall

be classified in the lines of

National Industrial

Classification (All Economic

Activities) – 2008 [NIC] for all

sectors, except infrastructure

sector. Exposure shall be

calculated at Division level

from A to R. For Financial

and Insurance Activities

sector exposure shall be at

Section level.

Exposure to ‘infrastructure’

investments are subject to

Note: 1, 2, 3 and 4 mentioned

below

b. Investment in Debt (incl.

CPs) / Loans and any

other permitted

Investments as per Act /

Regulation other than

item ‘a’ above.

10% * of the Paid-up Share

capital, Free reserves

(excluding revaluation

reserve) and Debentures /

Bonds (incl. CPs) of the

‘Investee’ company

10% of the amount under

point A.1.(a) or A.1.(b) or

A.1.(c) [segregated fund]

above considered separately

in the case of Life insurers /

amount under A.2 or A.3 or

A.4 in the case of General

Insurer including an insurer

carrying on business of reinsurance

or health

insurance

whichever is lower.

* In the case of insurers having investment assets within the meaning of Regulation 2 (i) (1) and Regulation 2 (i) (2) of the under mentioned size, the (*) marked limit in the above table for investment in equity, preference shares, convertible debentures, debt, loans or any other permitted investment under the Regulations, shall stand substituted as under:

Investment assets

Limit for ‘investee’ company

Equity

Debt

Rs 250000 Crores or more

15% of outstanding equity shares (face value)

15% of paid up share capital, free reserves (excluding revaluation reserve) & debentures / bonds

Rs. 50000 Crores but less than Rs.

250000 Crores

12% of outstanding equity shares (face value)

12% of paid up share capital, free reserves (excluding revaluation reserve) & debentures / bonds

Less than Rs. 50000 Crores

10% of outstanding equity shares (face value)

10% of paid up share capital, free reserves (excluding revaluation reserve)

& debentures / bonds

Note:

2. Investments in Infrastructure Debt Fund (IDF), backed by Central Government as approved by the Authority, on a case to case basis shall be reckoned for investments in Infrastructure.

3. Exposure to a public limited ‘Infrastructure investee company’ will be:

i. 20% of outstanding equity shares (face value) in case of equity (or)

ii. 20% of outstanding equity plus free reserves (excluding revaluation reserve) plus debentures / bonds taken

together, in the case of debt (or)

iii. amount under Regulation 9 (B) (i), whichever is lower.

iv. The 20% mentioned above, can be further increased by an additional 5%, in case of debt instruments alone, with the prior approval of Board of Insurer.

v. The outstanding tenure of debt instruments, beyond the exposure prescribed in the above table in this regulation, in

an infrastructure Investee Company, should not be less than 5 years at the time of investment.

vi. in case of Equity investment, dividend track record as per these regulations, in the case of primary issuance of a wholly owned subsidiary of a Corporate / PSU shall apply to the holding company.

vii. all investments made in an ‘infrastructure investee company’ shall be subject to group / promoter group exposure norms.

has been modified under Part II, point no. 7 of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

The maximum exposure limit for a single ‘investee’ company (equity, debt and other investments taken together) from all investment assets under point (1(i)(a),1(i)(b), 1(i)(c) all taken together), (1-ii), (1-iii) and (1-iv) mentioned above, shall not exceed the lower of the following;

(a) an amount of 10% of investment assets as under clause 1(7)(i),clause 1(7)(ii)) excluding fair value change of investment assets under clause 1(7) except clause 1(7)(i)(c).

(b) an aggregate of amount calculated under point (a) and (b) of the following table:

Type of Investment

Limit for ‘Investee’ Company (2)

Limit for the entire Group of the Investee Company (3)

Limit for Industry Sector to which Investee Company belongs (4)

a. Investment in ‘Equity’, Preference Shares, Convertible Debentures

10% * of the Paid Up Equity Share capital

10% of the amount under1(i)(a) or 1(i)(b) or 1(i)(c) [segregated

fund] above considered

separately in the case of Life insurers /amount under 1(ii) or 1(iii) or 1(iv) in the case of General Insurer including an insurer carrying on business of re-insurance or health insurance whichever is lower

Not more than 15% of the amount under point (1(i)( a or 1(i)(b) or 1.(i)(c) or (1-ii) or (1-iii) or (1.iv)

Investment by the insurer in any industrial sector should not exceed 15% of the amount under point 1(i)(a or 1(i)(b) or 1.(i)(c) or (1-ii) or (1-iii) or (1.iv) Note: Industrial Sector shall be classified in the lines of National Industrial Classification (All Economic Activities) – 2008 [NIC] for all sectors, except infrastructure sector. Exposure shall be calculated at Division level from A to R. For Financial and Insurance Activities sector exposure shall be at Section level.

Exposure to ‘infrastructure’ investments are subject to Note: I, II, III and IV mentioned below.

b. Investment in Debt

(incl. CPs) / Loans

and any other

permitted Investments

as per Act /Regulation

other than item ‘a’

above.

10% * of the Paid-up Share

capital, Free reserves

(excluding revaluation reserve)

and Debentures /Bonds (incl.

CPs ) of the‘ Investee’ company

10% of the amount under 1(i)(a) or 1(i)(b) or 1(i)(c) [segregated fund] above considered separately in the case of Life insurers /amount under 1(ii) or 1(iii) or 1(iv) in the case of General Insurer including an insurer carrying on business of re-insurance or health insurance

Whichever is lower .

*In the case of insurers having investment assets within the meaning of clause 1(7) (i) and clause 1(7)(ii) of the under mentioned size, the (*) marked limit in the above table for investment in equity, preference shares, convertible debentures, debt, loans or any other permitted investment under the Regulations, shall stand substituted as under:

Investment assets

Limit for ‘investee’ company

Equity

Debt

Rs 250000 Crores or more

15% of Paid up Equity Share Capital

15% of paid up share capital, free reserves (excluding revaluation reserve) & debentures / bonds

Rs. 50000 Crores but less than Rs.

250000 Crores

12% of Paid up Equity Share Capital

12% of paid up share capital, free reserves (excluding revaluation reserve) & debentures / bonds

Less than Rs. 50000 Crores

10% of Paid up Equity Share Capital

10% of paid up share capital, free reserves (excluding revaluation reserve) & debentures / bonds

Note:

(I) Industry sector norms shall not apply for investments made in:

(i) ‘Infrastructure facility’ sector as defined under clause 1(6). NIC classification shall not

apply to investments made in ‘Infrastructure facility’.

(ii) NIC classification shall not apply to investments made in ‘Housing Sector’.

(II) Investments in IDF-NBFCs (Infrastructure Debt Fund), shall be reckoned for investments in Infrastructure subject to the following conditions:

(i) IDF-NBFC is registered with RBI

(ii) Debt securities shall have residual tenure of not less than 5 years (at the time of investment).

(iii) Minimum Credit Rating of AA or its equivalent by a Credit Rating Agency registered

with SEBI to be eligible for approved investments.

(iv) The exposure limits for investments in IDF-NBFCs is as per the note (III) below.

(III) Exposure to a public limited ‘Infrastructure investee company’ and Infrastructure Finance

Company (NBFC-IFC registered with RBI) will be:

(i) 20% of Paid-up Equity Share Capital in case of equity (or)

(ii) 20% of Paid-up Equity Share Capital plus free reserves (excluding revaluation reserve) plus debentures/bonds taken together, in the case of debt (or)

(iii) Amount under clause 8(2)(a) whichever is lower.

(iv) The 20% mentioned above, can be further increased by an additional 5%, in case of debt instruments alone, with the prior approval of Board of Insurer.

(v) The outstanding tenure of debt instruments, beyond the exposure prescribed in the above table in this regulation, in an infrastructure Investee Company, should not be less than 5 years at the time of investment.

(vi) In case of Equity investment, dividend track record as per these regulations, in the case of primary issuance of a wholly owned subsidiary of a Corporate/ PSU shall apply to the holding company.

(vii) All investments made in an ‘infrastructure investee company’ shall be subject to group/promoter group exposure norms.

m. New Provision under Part II, point no. 8(l)(ii) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 has been inserted as:

“(I) Industry sector norms shall not apply for investments made in:

(ii) ‘Housing Sector’. NIC classification shall not apply to investments made in ‘Housing Sector’”

n. Regulation 9-Note (2) of IRDAI (Investment) Regulations, 2016 stating that:

“Investments in Infrastructure Debt Fund (IDF), backed by Central Government as approved by the Authority, on a case to case basis shall be reckoned for investments in Infrastructure.”

has been modified under Part II, point no. 8 – Note (II) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Investments in IDF-NBFCs (Infrastructure Debt Fund), shall be reckoned for investments in Infrastructure subject to the following conditions:

(i) IDF-NBFC is registered with RBI

(ii) Debt securities shall have residual tenure of not less than 5 years (at the time of investment).

(iii) Minimum Credit Rating of AA or its equivalent by a Credit Rating Agency registered with SEBI to be eligible for approved investments.

(iv) The exposure limits for investments in IDF-NBFCs is as per the note (III) below”

o. Regulation 9-Note (2) (i) & (ii) of IRDAI (Investment) Regulations, 2016 stating that:

“Exposure to a public limited ‘Infrastructure investee company’ will be:

i. 20% of outstanding equity shares (face value) in case of equity (or)

ii. 20% of outstanding equity plus free reserves (excluding revaluation reserve) plus debentures / bonds taken together, in the case of debt”

has been modified under Part II, point no. 8 – Note (III) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Exposure to a public limited ‘Infrastructure investee company and Infrastructure Finance Company (NBFC-IFC registered with RBI) will be:

(i) 20% of Paid-up Equity Share Capital in case of equity (or)

(ii) 20% of Paid-up Equity Share Capital plus free reserves (excluding revaluation reserve) plus debentures / bonds taken together, in the case of debt (or)”

p. Regulation 9-Note (5) of IRDAI (Investment) Regulations, 2016 stating that:

“Investment in securitized assets [Mortgaged Backed Securities (MBS) / Asset Backed Securities (ABS) / Security Receipts (SR)] both under approved and other investment category shall not exceed 10% of Investment Assets in case of Life companies and 5% of Investment Asset in the case of General companies. Approved Investment in MBS / ABS with underlying Housing or Infrastructure Assets shall not exceed 10% of investment assets in the case of life companies and not more than 5% of investment assets in the case of General companies. Any MBS / ABS with underlying housing or infrastructure assets, if downgraded below AAA or equivalent, shall be reclassified as Other investments”

has been modified under Part II, point no. 8 – Note (V) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Investment in securitized assets (Mortgaged Backed Securities (MBS) / Asset Backed Securities (ABS) / Security Receipts (SR) / Pass Through Certificates (PTC)) both under approved (with minimum credit rating of AAA) and other investment (with credit rating below AAA) category shall not exceed 10% of Investment Assets in case of Life Insurance companies and 5% of Investment Asset in the case of General Insurance companies. Approved Investment in MBS / ABS with underlying Housing or Infrastructure Assets shall not exceed 10% of investment assets in the case of Life insurance companies and not more than 5% of investment assets in the case of General insurance companies. Any MBS / ABS with underlying housing or infrastructure assets, if downgraded below AAA or equivalent, shall be reclassified as Other Investments”

q. Regulation 9-Note (7) of IRDAI (Investment) Regulations, 2016 stating that:

“Subject to exposure limits mentioned in the table above, an insurer shall not have investments of more than 5% in aggregate of its investment assets in all companies belonging to the promoters’ group. Investment made in all companies belonging to the promoters’ group shall not be made by way of private placement or in unlisted instruments (equity, debt, certificate of deposits and fixed deposits held in a Scheduled Commercial Bank), except for companies formed by Insurers under Note 12 to Regulation 9”

has been modified under Part II, point no. 8 – Note (V) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“Subject to exposure limits mentioned in the table above, an insurer shall not have investments of more than 5% in aggregate of its investment assets in all companies belonging to the promoters’ group. Investment made in all companies belonging to the promoters’ group shall not be made by way of private placement (except QIPs of BSE100/NSE100 companies and Central Public Sector Enterprises) or in unlisted instruments (equity, debt, certificate of deposits and fixed deposits held in a Scheduled Commercial Bank), except for companies formed by Insurers under Note XII to clause 8”

r. Regulation 9-Note (8) of IRDAI (Investment) Regulations, 2016 stating that:

The exposure limit for financial and insurance activities (as per Section K of NIC classification – 2008, as amended from time to time) shall stand at 25% of investment assets for all insurers. Investment in Housing Financing Companies and Infrastructure Financing Companies (except investment in Bonds / debentures of HUDCO, NHB and only bonds issued by Housing Finance Companies having a rating of not less than AAA, and investment in Debt, Equity in dedicated infrastructure financing entities forming part of Infrastructure sector) shall form part of exposure to financial and insurance activities (as per Section K of NIC classification – 2008)

has been modified under Part II, point no. 8 – Note (VIII) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“The exposure limit for financial and insurance activities (as per Section K of NIC classification – 2008, as amended from time to time) shall stand at 30% of investment assets for all insurers. Investment in Housing Financing Companies and Infrastructure Financing Companies (except investment in Bonds / debentures of HUDCO, NHB and bonds issued by Housing Finance Companies having a rating of not less than AA, investment in equity shares of any actively traded Housing Finance Company on which not less than ten percent dividends have been paid for at least 2 Financial years out of immediately preceding 3 consecutive Financial years and investment in Debt, Equity in dedicated infrastructure financing entities forming part of Infrastructure sector) shall form part of exposure to financial and insurance activities (as per Section K of NIC classification – 2008)”

s. Regulation 13 (A) of IRDAI (Investment) Regulations, 2016 stating that:

“A. Constitution of Investment Committee

1. Every insurer shall constitute an Investment Committee which shall consist of a minimum of two non-executive directors of the Insurer, the Chief Executive Officer, Chief of Finance, Chief Risk Officer, Chief of Investment division, and the Appointed Actuary. The Board of the Insurer shall ensure that Chief of Finance, Chief of Investment and the Chief Risk Officer, shall fulfil the minimum qualification requirements specified in the regulations / guidelines issued by the Authority. The decisions taken by the Investment Committee shall be recorded and be open to inspection by the officers of the Authority.”

has been modified under Part II, point no. 12(1) of Schedule III of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

“(1) Constitution of Investment Committee

(i) Every insurer shall constitute an Investment Committee with a composition as mentioned in the Corporate Governance Regulations and Circulars issued thereon by the Authority from time to time. The decisions taken by the Investment Committee shall be recorded and be open to inspection by the officers of the Authority.”

18. Schedule IV – Loans and Advances by Insurance Companies: The Authority has provided detailed rules, processes, and formats with respect to Loans and Advances provided by Insurers.

a. Regulation 7 of IRDAI (Loans or Temporary advances to the full-time employees of the Insurers) Regulations, 2016 stating that:

“Transitory Provisions:

The terms and conditions of the loans or temporary advances which are currently outstanding may, at the insurers discretion, be reviewed in the light of these regulation in order to address transitions issues as may arise”

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

b. Regulation 8 of IRDAI (Loans or Temporary advances to the full-time employees of the Insurers) Regulations, 2016 stating that:

Power to remove difficulty:

In order to remove any doubts or the difficulties that may arise in the application or interpretation of any of the provisions of these regulations, the Chairperson of the Authority may issue appropriate clarifications or guidelines as deemed necessary.

has been omitted with the publication of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024.

19. Schedule V- Inspections and Supply of Returns: The Authority has provided detailed rules, processes, and formats with respect to the Inspection and circulation of MOA and AOA if asked by the Policyholders subject to Application under Section 20(3) of the Insurance Act, 1938.

a. Regulation 3 of IRDAI (Inspection and Fee for Supply of Copies of Returns) Regulations, 2015 stating that:

1.Any person seeking inspection of any return under Section 20 (1) of the Act, shall make an

application to the Authority in writing and send the same to the Head office of the Authority.

2. There shall be no fee for inspection of any return.

3. The Authority, on receipt of the application, shall indicate a date on which the person can inspect the return at the office premises of the Authority.

Provided that such date shall not be beyond 30 working days from the date of receipt of the application

has been modified under point no. (1) of Schedule V of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

(1) Any person seeking inspection of any return or a copy of any return under Section 20 (1) of the Act, shall make an application to the Authority in such manner as may be specified by the Authority.

b. Regulation 4 of IRDAI (Inspection and Fee for Supply of Copies of Returns) Regulations, 2015 stating that:

1. Any person seeking a copy of any return under Section 20 (1) of the Act, shall make an application to the Authority in writing and send the same to the Head office of the Authority

2. For providing copy of the return under Section 20 (1), the fee shall be charged at the following rate: rupees One hundred only (Rs.100/-) for each page or part thereof in physical form and rupees Seventy five (Rs. 75/-) per page in electronic form.

3.The fee shall be paid by way of cash or by way of a demand draft or banker’s cheque in favour of the

“Insurance Regulatory and Development Authority of India” or transferred to the account of Insurance Regulatory and Development Authority of India through electronic fund transfer.

has been modified under point no. (1) of Schedule V of IRDAI (Actuarial, Finance and Investment Functions of insurers) Regulations, 2024 as:

A copy of the Regulation is attached herewith for your reference.

Source category: IRDAI

Attachments

/2024/378_IRDAI_(Actuarial,_Finance_Investment)_Regulations,_2024.pdf

IRDAI (Actuarial, Finance and Investment Functions for Insurers) Regulations, 2024

Attachments

Comments are closed

Subscribe to our Newsletter