The General Insurance Council, as you are all aware, has been entrusted with the administration of the Electronic Transaction Administration and Settlement System (ETASS). Recently, the status of implementation of the Co-insurance Module of ETASS was reviewed by us and we are glad to note that considerable progress has been made in its implementation. However, the module needs to be fully implementedand indeed it would be necessary for all insurers to be on board fully in order to make ETASS a complete success.
In this backdrop, kindly note the following:
(1). Clause 8 of IRDAI Guidelines on ETASS bearing Ref: IRDA/NL/ETASS/RIN/103/05/2015 dated 11th May, 2015stipulates that all insurers shall comply with the Guidelines and that when it comes to implementation, all the members shall adhere to the rules, guidelines and operational framework of ETASS as prescribed by the Administrator from time to time. All insurers shall necessarily use ETASS for settlement of coinsurance balances due and carry out reconciliation of all outstanding co-insurance balances through ETASS alone. Please ensure that this is carried out without fail in respect of all transactions carried out from 1st April, 2018 onwards;
(2). Target dates for ETASS activities have been mandated by the Administrator. In order to ensure speedy settlement and reconciliation of balances, it would be necessary for insurers to adhere to the timelines laid down. Insurers may bear this in mind when audit is carried out andensure that statutory auditors are advised to comment on the implementation of ETASS including adherence to timelines.
Please acknowledge this circular and confirm having noted the contents.
Source : Insurance Regulatory and Development Authority of India