Page 51 - Insurance Times March 2017 Sample

Circular

IRDAI Circular

Report of IRDAI Committee on Risk Based framework for better policyholder protection. Earlier,
Capital (RBC) Approach and Market Consistent the Authority has issued guidelines on grievance
redressal. It is felt necessary to merge some of the
Valuation of Liability (MCVL) of Indian Insurance
provisions of these guidelines into the Regulations.
Industry Further, the Insurance Laws (Amendment) Act, 2015
has brought in amendments to section 45, section 39
The Authority Constituted the Committee on Risk Based which are required to be suitably factored into
Capital Approach and Market Consistent Valuation of Regulations.
Liabilities, vide its order Ref No. IRDA/ACT/ORD/MISC/116/
3. The consumer protection related provisions contained
06/2016 dated 10/06/2016. The order authorized the
in other regulations need to be aligned with Regulations
committee to examine the changes required in the method
meant for policyholder protection. In this background,
of valuation of liabilities following the decision of Working
it is imperative to revisit the IRDA (Protection of
Group on Implementation of Ind-AS in insurance sector to
Policyholders Interest) Regulations, 2002 for
value assets at marked to market / fair value. The
strengthening the measures for policyholder protection.
committee has submitted Part-I of its report on above
Considering the above, the Authority proposes to issue
subject. The report is attached for Public View.
revised Regulations for protection of interests of
policyholders.
Exposure Draft on IRDAI (Protection of
4. Accordingly, an exposure draft on IRDAI (Protection of
Policyholders' Interests) Regulations, 2017 Policyholders' Interests) Regulations, 2017 is herewith
Ref: CAD /PPHI/2017 issued seeking comments of all stakeholders.
Date:01-02-2017
All stakeholders are requested to review the attached
1. The basic framework for protection of policyholders' exposure draft (Annexure-I) and forward their views /
interests is contained in the IRDA (Protection of comments in the prescribed format (Annexure-II).
Policyholders' Interests) Regulations 2002 (PPHI General Manager (Consumer Affairs Department),
Regulations in short). Insurance Regulatory and Development Authority of India,
2. There have been several changes that have come about 03rd Floor, Parisrama Bhavan, Basheerbagh,
after 2002 which include introduction of new categories HYDERABAD - 500004
of insurance intermediaries like brokers, web- Comments may also be forwarded by e-mail to g.rajeshwar
aggregators and new products like ULIP products etc. [at] irda [dot] gov [dot] in.
The channels of grievance redressal have also increased
with the introduction of IGMS, IRDAI Grievance Call TS Naik
Centre etc. and introduction of technology in the General Manager
process of sourcing; sale and servicing of products Consumer Affairs Department
necessitate a commensurate change in the regulatory

The Insurance Times, March 2017 51

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