IRDAI vide Circular bearing reference no: IRDAI/NL/CIR/RSS/77/5/2024 dated May 10, 2024 issued Master Circular on Rural, Social Sector and Motor Third Party Obligations, which supersedes the following IRDAI Guidelines/Circulars:
1. Clarification with regards to ASHA workers and MGNREGA Workers bearing reference no. IRDAI/Life/MISC/Cir/046/03/2021,
2. Format for submission of Annual Certificates for obligation of insurers to Rural and Social Sector bearing reference no. IRDAI/Life/MISC/CIR/130/06/2016
Major highlights of the Master Circular are as follows:
I. Definition
1. “General Insurer -1” shall mean General Insurers other than Stand Alone Health Insurers (SAHI), Agriculture Insurance Company (AIC) and Export Credit Guarantee Corporation of India (ECGC).
2. “General Insurer – 2” shall mean General Insurers including Stand Alone Health Insurers other than AIC and ECGC.
II. Methodology of arriving at the obligations with respect to Rural Sector
Life Insurers
General Insurer-1
General Insurer-2
- Life insurers have shall insure a minimum percentage of lives under Life Insurance.
- The Life Insurance Council, in consultation with the Ministry of Panchayati Raj, shall identify gram panchayats for rural sector obligations, ensuring adequate coverage across all states and union territories (UTs) annually.
- Implementation Process:
Life insurers shall allocate a minimum number of gram panchayats based on factors like market share. They shall then select gram panchayats for coverage and share the list with other insurers and the Life Insurance Council, ensuring no overlap.
- General Insurer-1 shall insure a minimum percentage of dwellings and shops under fire insurance and vehicles under motor insurance.
- The General Insurance Council shall allocate a minimum number of gram panchayats to each General Insurer-1 based on factors like market share, ensuring comprehensive coverage across all states and union territories (UTs) annually.
- Implementation Process:
General Insurer-1 shall select gram panchayats for coverage based on the allocated numbers and share the list with other insurers and the General Insurance Council to prevent overlap.
- General Insurer-2 shall insure a minimum percentage of lives under health insurance and personal accident insurance.
- The General Insurance Council, in consultation with the Ministry of Panchayati Raj, shall identify gram panchayats for rural sector obligations, allocating a minimum number to each General Insurer-2 based on factors like market share, ensuring comprehensive coverage across all states and union territories (UTs) annually.
- Implementation Process:
General Insurer-2 shall select gram panchayats for coverage based on allocated numbers and share the list with other insurers and the General Insurance Council to prevent duplication.
Note: Once the lists are finalized, the Life Insurance Council and General Insurance Council shall submit them to IRDAI by May 15th each year.
1. How to measure:
Life Insurers
General Insurer – 1
General Insurer – 2
Life insurers shall coordinate with the Ministry of Panchayati Raj, Government of India, to obtain information regarding the number of lives and other details for each gram panchayat through the web portal of the Ministry.
The General Insurance Council may coordinate with local bodies and state government administrations to obtain information on the number of dwellings, shops, and motor vehicles in a gram panchayat, which can be sourced from the Gram Sachiv.
General Insurer – 2 shall obtain the number of lives and other details pertaining to each gram panchayat from the web portal of the Ministry of Panchayati Raj, Government of India.
Common – Life Insurers, General Insurer -1 and General Insurer -2: Insurers, in consultation with other insurers, shall establish a mechanism to identify, record, coordinate, and exchange information on the number of lives to be covered in each gram panchayat, replicating the process across all panchayats within the state. Additionally, insurers shall closely coordinate with the Gram Sarpanch and Gram Sachiv to achieve the objective of full saturation of the gram panchayat.
2. Common – Life Insurers, General Insurer -1 and General Insurer -2:
When to Measure
How to Check Compliance
- The Life Insurance Council and General Insurance Council (collectively referred as ‘Councils’) shall submit quarterly reports to IRDAI detailing the number of lives insured, dwellings/shops covered, and motor vehicles insured by all insurers, separately for each gram panchayat, within 30 days of the quarter’s end.
- These reports must include the total population of the gram panchayat and the coverage status, ensuring comprehensive data submission for each insurer and all allocated gram panchayats.
- Any shortfall in covering the required number of lives, dwellings/shops, or motor vehicles in allocated gram panchayats shall be considered non-fulfilment of obligations by the insurer, emphasizing the importance of meeting coverage targets.
- The Councils shall establish a unified format for a certificate, to be obtained quarterly from the Gram Sachiv of each gram panchayat, confirming details of lives, dwellings/shops, and motor vehicles insured by insurers. If the Gram Sachiv position is vacant, authorization from a designated individual shall suffice. This certification serves as the basis for quarterly reporting of insured numbers.
- Certificates from the Gram Sachiv shall serve as proof of insurance coverage and shall be stored electronically. These records shall be made accessible for verification by IRDAI, ensuring transparency and accuracy in reporting.
III . Methodology of arriving at the obligations with respect to the Social Sector:
These obligations shall apply to Life Insurer and General Insurer -2.
What to Measure
How to Measure
When to Measure
How to check Compliance
Insurers shall insure a minimum number of lives as a proportion of total lives, as applicable to them.
- The Councils shall collaborate with government agencies to gather data on the social sector population, including accessing beneficiary lists from central and state-sponsored schemes in accordance with the regulations.
- In situations where no government-backed identity card is available for social sector individuals, insurers may obtain self-certification from prospects regarding their profession, supported by appropriate evidence such as photographs. However, the allowance for such self-certification shall not exceed 20% of the insurer’s total social sector obligations.
Insurers (Life and General Insurers -2) shall determine the number of lives covered under the “social sector” category as a percentage of the total covered lives and submit this information to IRDAI within 30 days of the end of every quarter.
Insurers shall establish protocols to classify lives according to the “Social Sector” definition and document the source or database from which these classifications are derived.
IV. Methodology of arriving at the obligations with respect to the Motor Third Party
These obligations shall apply to General Insurer -1.
What to Measure
How to Measure
When to Measure
How to check Compliance
Every General Insurer – 1 shall insure a minimum percentage increase in number of goods-carrying, passenger-carrying vehicles and tractors.
- General Insurer-1 shall collaborate with the Insurance Information Bureau (IIB) and State Regional Transport Authorities (RTAs) to identify uninsured goods-carrying, passenger-carrying vehicles, and tractors nationwide.
- In consultation with IIB, General Insurer-1 shall compile a detailed list of uninsured vehicles, including vehicle category, registration number, owner’s name, and registering State RTA.
- The General Insurance Council shall coordinate with IIB and State RTAs to facilitate the acquisition of necessary data regarding uninsured vehicles.
General insurer-1 shall report IRDAI within 30 days of end of the quarter, the number of uninsured goods carrying, passenger carrying vehicles, and tractors insured by them, along with those already on its or other insurers’ books and renewed by it, to determine motor third-party insurance obligations on an insurer-wise basis.
For the purposes of checking compliance, the data given in ‘when to measure’ column shall be cross verified against the IIB database of uninsured vehicles.
V. Reporting requirements
The reporting entities (i.e. insurers and councils) shall submit to the Authority returns as per Master Circular on submission of returns.
Source category: IRDAI
Attachments
- /2024/389_Master_Circular_on_RUSO_and_MTP_Obligations.pdf
Comments are closed