Page 48 - Insurance Times April 2017 Special Issue on Newindia

signed off by the Appointed Actuary and the Chief Approach on the un-reconciled, unsettled
Executive Officer is sent to the Actuarial outstanding reinsurance balances as on
Department of the Authority with a copy to the
Life Department within seven days from the date 31st March, 2014
of launch of modified version of the product / rider Ref:IRDA/BRK/MISC/CIR/050/03/2017
c. The allotment of next higher version of UIN will Date: 08-03-2017
be done by the Insurers themselves as explained
Reference is drawn to IRDA circular no. IRDA/BRK/ MISC/
below:
CIR/ 208/09/ 2014 dated 3rd September, 2014 outlining the
"If UIN of the existing product is 123N111V01,
approach on the un-reconciled, unsettled outstanding
say, then the UIN of the product modified under reinsurance balances as on 31st March, 2014 and seeking
this circular will be 123N111V02. It is to be noted information in the prescribed formats, individual insurer/
here that the last three characters of UIN stands reinsurer-wise, pertaining to the period from 1st April, 2013
for the "version of the product. This process shall to 31st March, 2014. Separate forms submitted for different
be followed every time a product is modified under insurers/ reinsurers, quoting the name of the insurer/
this circular". reinsurer were collated and analysed by the Authority.
d. The modified UIN will be displayed in all the Going forward, the Authority in its recently concluded
documents of the modified product. meeting decided that all reinsurance transactions involving
the reinsurance/ composite broker after 1.4.2014 shall be
e. Within 15 days from the end of every quarter, the
reconciled between the reinsurers/ insurers and
insurer will send a statement as per Annexure III
reinsurance/ composite brokers in the attached formats and
regarding modified products / riders launched be kept with them in compliance with the requirements of
during that quarter to the Actuarial Department Regulation 30 - Annexure-VI-E of IRDA (Insurance Brokers)
with a copy to the Life Dept. Regulations, 2013.

If the reinsurance/ composite broker has un-reconciled
5. Procedure to be followed in case of violation of norms
outstanding unsettled clients money lying with them, they
by the insurers
shall transfer the same in a separate bank account under
a. The Authority may inspect the documents intimation to the Authority with full details of the bank
submitted by the insurers under modified account. The broker shall give an undertaking that they
products / riders. If any violation of any would work with their clients (insurers/ reinsurers/ other
regulations, guidelines, circulars, instructions reinsurance/ composite brokers) and ensure that the "un-
issued by the Authority is noticed, the modified reconciled outstanding unsettled clients' money" lying with
version of the product / rider shall be withdrawn them shall be reconciled and settled by 31st May, 2017.
from the market immediately. In such If there is outstanding unsettled client's money, the
circumstances, the Authority reserves the rights reinsurance/ composite broker shall settle the same within
to take any action against the Appointed Actuary a period as specified in the agreement and in absence of
/ Chief Executive Officer / insurer after giving an any time limit within a period not exceeding 30 days. The
opportunity of being heard as per the provisions reinsurance/ composite broker shall file compliance of the
of extant law. above requirement within further 30 days of the expiry of
the period stated above.

6. Effective date of circular It is reiterated that all reinsurance/ composite brokers shall
confirm that there are no un-reconciled outstanding
The provisions of this circular shall be effective from the date unsettled clients money lying with them on a half-yearly
of this circular. basis along-with Annexure-VI-E of IRDA (Insurance Brokers)
Regulations, 2013.
(Pournima Gupte) P.J. Joseph
Member (Actuary) Member (Non-Life)

48 The Insurance Times, April 2017

Copyright@ The Insurance Times. 09883398055 / 09883380339