Insurance Companies advised to increase contribution to Motor TP Pool

The IRDA had conducted an audit of the Third Party Motor Insurance Pool and has established that the pool reserves have to be significantly augmented in order to meet the higher compensation to be paid to the unfortunate victims of road accidents. Such augmenting of reserves will strengthen the insurance companies and will enable them to meet all claim obligations at all times expeditiously and without fail.

Read more

Exposure Draft on Amalgamation of Non Life Insurance Co.

Section 35 of the Insurance Act, 1938 lays down the framework for amalgamation and transfer of life insurance companies. However, a similar provision is not available in case of non-life insurance companies. This anomaly is proposed to be rectified in the Insurance Amendment Bill, 2008. Read more

Guidelines on Outsourcing of Activities by Insurance Companies

Insurers in India are increasingly using outsourcing, as a means of both reducing cost and accessing expertise, not available internally and achieving strategic aims. ‘Outsourcing’ may be defined as “Insurer’s use of a third party (either an affiliated entity within a corporate group or an entity that is external to the corporate Read more

Creation of Reserve for Unexpired Risk (URR) by the Non-life Insurance Companies for Health Segment

IRDA CIRCULAR: Authority vide Circular No. IRDA/F&A/CIR/49/Mar-09 dated March 24, 2009 had relaxed the requirement of Section 64(1)(ii)(b) of the Act for computation of Reserve for Unexpired Risk for Health segment for the year 2008-09 and had permitted to compute Reserve for Unexpired Risk on 1/365 days method basis. The said relaxation was extended to the financial year 2009-10 vide Circular No. IRDA/F&I/CIR/F&A/081/12/2009 dated 17th December, 2009. Read more