Page 41 - Life Insurance Today February 2018

IRDAI frames guidelines for insurance companies to set IRDAI asks general insur-
up offices in SEZs ers to ensure easy avail-
IRDAI has paved the way for setting up of IFSC (International Financial Services ability of third-party mo-
Centre) Insurance Offices (IIOs). With this, the
IRDAI has put in place the process of registration tor insurance cover
and operation of insurers and re-insurers in IFSC
Special Economic Zones, in alignment with the
objectives of IFSC-SEZ. Insurers and re-insurers
from India and abroad are eligible to apply for
registration to set up IIOs, subject to certain norms.
As per the IRDAI (Registration and Operations of IIOs) Guidelines, 2017, no
person or entity shall commence or undertake insurance or reinsurance busi-
ness from an IFSC without obtaining prior registration as an IIO from the Au-
thority.
IRDAI has directed general insurers
"The sole object of an IIO, on being registered with the Authority, shall be to to ensure easy availability of third
exclusively carry on insurance or reinsurance business from an IFSC. An IIO shall party motor insurance cover to ve-
not engage itself in any business other than those permitted by the Author- hicle owners, to help states in
ity," the regulator said. implementing the Supreme Court
The registered IIO may be permitted to transact direct insurance business within order on road safety. IRDAI has also
the IFSC, from other SEZs and from outside India. asked the insurers not to deny any
request for third party insurance
In the case of reinsurance business, the IIO may accept reinsurance business cover by vehicle owners.
from within the IFSC, from other SEZs and from outside India.
This circular follows complaints
It may also accept reinsurance business from insurers operating in the Domestic made by the states that cumber-
Tariff Area in accordance with the order of preference for cession, as per the some process of obtaining third
existing norms.
party insurance is hampering imple-
IIOs may be registered for carrying on business in various classes/sub-classes menting the Supreme court order.
of life, general, or health insurance as also reinsurance businesses. The Supreme Court Committee on
The applicant should have a minimum assigned capital of Rs.10 crore. In case Road Safety had directed the states
the applicant is a Foreign Direct Insurer, the applicant company shall possess and union territories to periodically
paid-up equity capital as per existing provisions. carry out checks to see whether ve-
hicle owners have third party insur-
IRDAI defers launch of standard proposal form for life ance cover. The order further said

insurance policies that in case the vehicles are not cov-
ered by Motor TP, they should be
IRDAI has deferred the plan to introduce standard format for the proposal form detained till valid third party insur-
for life insurance. Insurance companies had ance certificate is produced by the
raised concerns that a single standard proposal vehicle owners.
form might not suit all types of products of dif-
ferent companies. It also asked them to liaise with the
police authorities to facilitate issue/
"Prospective customers may not be comfort- renewal of third party liability policy
able in sharing so many granular details. The
to owners of the vehicles who are
proposal forms are customised by life insurers
for specific products and mandating a uniform not having third party cover.
proposal form format for all companies and products serves no purpose, the The insurers have also been asked to
regulator said. provide facility to make available fa-
cility for obtaining online Motor TP
As of now the life insurers file proposal forms with IRDAI and the same is re-
policy.
viewed under the file and-use procedure at the time of product clearance.
Life Insurance Today February 2018 41

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