Page 49 - The Insurance Times June 2020

Legal Entity Identifier (LEI) code Extension of time limit applicable to

IRDAI/F&A/CIR/MISC/134/06/2020 Public Disclosures on websites
Date:05-06-2020 IRDA/F&A/CIR/MISC/132/06/2020
Date: 04-06-2020
A. Legal Entity Identifier (LEI) code has been conceived of
as a key measure to improve the quality and accuracy The Authority has issued directions vide circular ref. IRDA/
F&I/CIR/F&A/012/01/2010 dt. 28th January 2010 for hosting
of financial data systems for better risk management
the financial and other information in specified formats on
post the Global Financial Crisis. The LEI is a 20-character
the respective websites by insurers. Similarly, the Authority
unique identity code assigned to entities who are
has also mandated insurers to furnish various online returns
parties to a financial transaction. The Reserve Bank of
and financial information through the BAP Portal.
India vide circulars RBI/2016-17/314 dated 1st June,
2017, RBI/2017-18/82 dated 2nd November, 2017, RBI/
In view of the lockdown and restrictions imposed to contain
2018-19/83 dated 29th November, 2018 and RBI/2018-
the spread of the COVID 19 pandemic, the Authority had
19/177 dated 26th April, 2019, has implemented the
already extended the time limit for furnishing various
requirement of LEI in OTC derivatives markets, banking
returns and reporting compliances by insurers, vide circular
sector and govt. securities market in a phased manner.
ref. IRDAI/Life/Cir/Misc/079/04/2020 dt. 4th April, 2020 to
LEI can be obtained from Legal Entity Identifier India
mitigate any hardships. The time limit for furnishing all
Ltd.
quarterly, half-yearly and annual returns for the period
B. Pursuant to the advice of the Financial Stability ending on 31.03.2020 has been extended by 30 days.
Development Council, Sub-Committee (FSDC-SC), IRDAI
examined the requirement to obtain LEI by its regulated It is hereby clarified that the time limit for ensuring
entities and the entities dealing with the regulated compliance with the directions regarding Public Disclosures
entities. Accordingly, it has been decided that on websites by insurers for the period ending 31st March
i. insurers shall necessarily obtain LEI as per the 2020 is also extended by 30 days.
procedure prescribed in the above referred
circulars on or before 31st July, 2020; All insurers are advised to adhere to directions regarding
the time limits and ensure regulatory compliance.
ii. insurers shall advise their existing corporate
borrowers having total exposures of Rs. 50 crore
Pravin Kutumbe
and above, and have not obtained LEI till now, shall
obtain LEI and provide the LEI information on or (Member F&I)
before 30th June, 2020,
Disclosure of underwriting philosophy of
iii. borrowers who do not obtain LEI, are not to be
granted renewal/enhancement of credit facilities offering Insurance coverage to Persons

by the insurers, with Disability (PWD) and people
iv. no new loan proposals shall be sanctioned by the affected with HIV/AIDS and Mental
insurers without LEI information, and
Illness diseases.
v. insurers shall capture the LEI code of corporate
borrowers in their records and specify the same IRDAI/HLT/MISC/CIR/129/06/2020
while reporting the transactions executed with such Date:02-06-2020
corporate borrowers.
C. This circular is issued under the powers vested in Section 1. Reference is drawn to the provisions of IRDAI (Health
34 (1) of Insurance Act, 1938. Insurance) Regulations, 2016 in accordance to which
every insurer shall evolve a health insurance
Pravin Kutumbe underwriting policy covering approach and aspects
Member (F&I) relating to offering health insurance coverage not only
to standard lives but also to substandard lives. Further

The Insurance Times, June 2020 49