Exposure Draft IRDAI (Maintenance of Information by the Regulated Entities and Sharing of informatio

IRDAI has reviewed and combined the extant IRDAI (Minimum Information Required for Investigation and Inspection) Regulations, 2020, Insurance Regulatory and Development Authority (Sharing of Confidential Information Concerning Domestic or Foreign Entity) Regulations, 2012 and IRDAI (Maintenance of Insurance Records) Regulations, 2015 into a unified regulation called the “IRDAI (Maintenance of Information by the Regulated Entities and Sharing of information by the Authority), Regulations 2024” (“Draft Regulation”)

The major highlights of the Draft Regulation are as under:

The Draft Regulation comprises of following two parts –

• Procedure and other norms for IRDAI, while supplying information on demand from other authorities including Indian Regulators, Public Authorities and International Supervisors (‘ Requesting Entity’ )

Procedure and other norms for IRDAI, while supplying information on demand from other authorities including Indian Regulators, Public Authorities and International Supervisors (‘ Requesting Entity’ )

• Maintenance of records by Insurers and Intermediaries

Maintenance of records by Insurers and Intermediaries

Sharing of Confidential Information by the Authority Concerning Domestic or Foreign Entity – 

• The Requesting Entity may seek information from the IRDA for statutory or regulatory functions and such information shall be categorized as either publicly available data or non-public data held by the IRDAI.
• Disclosure of Information upon implementation of the Draft Regulation-
• The IRDAI may disclose information by sharing the details available in public domain or for non-public information, the IRDAI may disclose information only with a written request, legal permission, prior consent from the Requested Entity, and assurance that it serves lawful duties.
• Each request for information shall be individually assessed based on confidentiality, rationale, nature of the information, and potential impact on the insurance sector or public interest.
• If faced with a legal demand, the IRDAI shall notify the Requested Entity and seek to protect the information, while employees of the Authority are bound to professional secrecy under applicable laws.
• Maintenance of Insurance Records by Insurers
• Upon implementation of the Draft Regulation, the Insurers shall be required to maintain complete and accurate electronic records of all policies and claims, ensuring security and data governance, with all records stored in Indian data centres and accessible for inspections and investigations by the Authority.
• Upon implementation of the Draft Regulation, the Insurers shall be required to have a Board-approved policy for record maintenance that includes an annual review, security mechanisms, compliance with privacy standards, processing procedures, backup and disaster recovery plans, data archival, and any other Authority-specified matters.
• Upon implementation of the Draft Regulation, the Insurers shall be required to organize their records for efficient business use and easy retrieval to support policyholder service and comply with applicable laws and regulations.
• Upon implementation of the Draft Regulation, the Insures and the Intermediaries shall be required to maintain all required records and information at their principal place of business in India, but where is impracticable to maintain any item of information in full detail at such principal place of business, the information may be maintained at the branches or other offices in such a way that each such branch or office maintains only the relevant part of the information applicable to its working.
• Upon implementation of the Draft Regulation, the Insurers and Intermediaries shall adopt a Board-approved policy on record maintenance and destruction, with records kept for at least 10 years or as legally mandated, based on the last transaction or policy expiration date.

Upon implementation of the Draft Regulation, the Insurers shall be required to maintain – 

• Proposal number, dates, agent/intermediary details, deposit info, insured’s contact and banking details, nominee info, and risk coverage details.
• Identification number, party name, risk dates, cover type, and premium received.
• Serially numbered records including policy number, insured details, risk dates, premium, endorsements, and adjustments.
• Group type, size, free cover limits, rating factors, and premium remittance dates.
• Reinsurer ID, arrangement type, business lines, payments, and broker details.
• Chronological receipt records including dates, amounts, and payer details.
• Policy number, endorsement dates, types, and premium adjustments.
• Party particulars, amounts, expiry, and conditions.
• Claimant details, registration dates, loss nature, settlement info, and adjustments for unit-linked and health policies.
• Name, address, registration details, and appointment dates of Insurance Agents.
• Name, address, registration number, and appointment details of Insurance Intermediaries
• Business procured, premium amounts, commissions, and rewards.
• Names, IDs, designations, and compensation details of Field workers and Employees
• Details of all investments, including changes over time.
• Records of deposits, sundry debtors, and cash balances.
• Outsourcing agreements with details on costs, payments, and compliance.
• Legally valid receipts for payments and systematic maintenance of invoices.
• Details of journeys, purposes, fares, and allowances.
• Staff attendance records for verification.
• Retain documents related to claims for specified periods based on claim amounts.
• Maintain various accounts including commission and claims accounts.
• Maintain registration applications, organizational charts, board meeting minutes, policies, and correspondence with authorities.

Upon implementation of the Draft Regulation, the Intermediaries shall be required to  – 

• Maintain records of all employees including their personal details, appointment dates, designations, salaries, and performance metrics.
• Record details of policies solicited for new business, including proposal numbers, insurer names, and premium payments.
• Keep track of renewal policies with details on due dates, premium payments, and previous policy numbers.
• Document claims processed through the intermediary, including claim numbers, dates, and amounts paid.
• Maintain records of claims surveyed, detailing the surveyor’s information and the claim estimate.
• Record claims processed through third-party administrators, including cashless requests and approval dates.
• Keep records related to reinsurance business, including premiums received and reinsurer details.
• Document claims received from reinsurers, including nature of loss and amounts transferred.
• Maintain records of grievances and complaints with details on resolution timelines and communication methods.
• Keep agreements with outsourcing entities and service providers, including terms, payments, and analysis of arrangements.
• Obtain and maintain legally valid receipts for all payments made and received, organized systematically.
• Maintain original licensing documents, organizational charts, and training certificates for solicitation.
• Keep records of all pending legal cases and appointment letters for employees.
• Maintain cash books, disbursement records, and a detailed inventory of all investments and assets.
• Track daily attendance of staff across all offices and document commission or remuneration transactions.
• Keep records of office openings, closures, and relocations with necessary approvals and documentation.
• Maintain a record of all phone numbers used for solicitation along with associated billing information.

A copy of the Exposure Draft is attached herewith for your ready reference.

Source category: IRDAI

Attachments

• Exposure Draft IRDAI (Maintenance of Information by the Regulated Entities and Sharing of information