Page 47 - Insurance Times July 2024

intermediaries and employees on products, Chapter V: Specific Lines of Business
regulations, and service timelines.
1. Motor Insurance:
Insurers must implement end-to-end technology
Coverage under Motor Third Party Liability
solutions to ensure seamless policyholder
onboarding, policy servicing, renewal, claim insurance must comply with the Motor Vehicles Act
1988.
settlement, and grievance redressal.
Premium rates for Motor Third Party Liability
Chapter III: Product Management insurance continue to be regulated by the Act.

Settlement of Total Loss/Constructive Total Loss
1. Product Development:
claims must be determined by criteria set by the
Products should be need-based, avoiding unnecessary
PMC and published on the insurer's website.
coverages while ensuring affordability and suitability.
The terms and conditions must be fair, reasonable, 2. Surety Insurance:
and compliant with various laws and regulations. Surety Insurance contracts must not cover Financial
Guarantees or be issued for assets/commitments
2. Product Approval Process:
outside India.
The Product Management Committee (PMC) is
responsible for ensuring compliance with the legal 3. Trade Credit Insurance:
and regulatory framework. Protects businesses against non-payment for goods
and services, typically covering a portfolio of
Insurers must submit a certificate signed by the CEO
buyers.
in the standard format as given in the Master
Circular on Submission of returns.
Insurance Surveyors
Retail Products' documentation must be uploaded
on the insurer's website before launch or within 1. Role and Responsibilities:
seven days of UIN allotment. Surveyors are responsible for impartial and

accurate evaluation of claims exceeding Rs 50,000
Chapter IV: General Guidelines - All Lines for motor insurance and Rs 1 lakh for other
of Business insurance.
2. Performance Monitoring:
1. Risk Classification:
General Insurers must ensure that all risk-level Insurers must have Board approved criteria for
monitoring the performance of surveyors, ensuring
information is organized to be collated/aggregated
timely and accurate survey reports.
by specific criteria, including Retail Product,
Commercial Product, Group Business, etc. 3. Allocation of Survey Jobs:
2. Acceptance of Risk: A tech-based approach must be used for random
Underwriting evaluations must be guided by the and unbiased allocation of survey jobs to surveyors,
Board-approved underwriting and risk ensuring transparency and efficiency.
management policy, consistent with reinsurance 4. Reporting Requirements:
treaties. Surveyors must submit their reports within fifteen
3. Policy Duration: days of allocation, with insurers deciding claims
General Insurance policies may be issued on an within seven days of receiving the report.
annual, long-term, or short-term basis.
4. Annual Performance Review: This detailed summary covers the essential points, facts,
The Product Management Committee must put in figures, and data provided in the Master Circular on General
place a program for annual performance review of Insurance Business, ensuring comprehensive understanding
every Product and Line of Business, approved by the and compliance for all stakeholders in the general insurance
Board. industry.

42 July 2024 The Insurance Times