Solvency Margin for Crop Insurance Business

IRDAI vide ref. no. IRDAI/ACTL/CIR/SLM/122/06/2022 dated June 13, 2022, has issued a Circular on “Solvency margin for Crop insurance business”.

Background:

The Circular draws reference to the earlier Circular No. IRDA/ACT/CIR/SLM/066/03/2017 dated March 28, 2017 on Solvency Margin issued by the Authority pertaining to the concessions proposed by the Authority in the determination of Solvency Margin.

Major highlights of the Circular

• The provision of Para-6.1.1 is revised as under:
• Premium receivables related to State / Central Government sponsored schemes for all quarters of the FY 2022-23 and onward to the extent that they are not realized within a period of 365 days shall be placed with value zero
• The provisions of Para-6.2, Para-6.3 and Para-6.3.1 shall remain effective for financial year 2022-23 and onward.
• IRDAI has advised insurers to continue follow-up with the Central and State Governments for release of their share of premium.
• This Circular comes into force with immediate effect i.e. from June 13, 2022 till further order of the Authority.

Source category: IRDAI

Attachments

• /2022/55_2022-06-13_Solvency_Margin_for_Crop_Insurance_Business.pdf