Page 45 - Insurance Times March 2019

2018 dated 18th September, 2018, had constituted a other than an individual having a minimum net-worth
committee on Regulatory Sandbox in insurance space in of Rs 25 lakhs for last 3 years.
India under the Chairmanship of Mr. Randip Singh Jagpal,
6) The applicant can apply in any one of more of the 5
CGM, IRDAI.
categories namely insurance solicitation or distribution,
A “Regulatory Sandbox Approach” can be used to carve out insurance products, underwriting, policy & claims
a safe and conducive space to experiment with Fin-Tech servicing and any other. The applicant could apply singly
solutions, and where the consequences of failure can be or jointly in one or more than one category, provided
contained. The objective of Regulatory Sandbox is to that if the category involves insurance product or
facilitate innovations in the insurance sector, make the underwriting, then the applicant necessarily has to
insurance products more affordable and relevant for the partner with an insurer.
insured and to give a fillip to insurance penetration.
7) The permission shall be granted for a period of 6
In this context, the Committee had invited suggestions/ months which can be extended for another 6 months.
comments, on the said subject, from all Insurance, In no case can the proposal be allowed to go beyond
Reinsurance companies and Foreign Reinsurance Branches 12 months. However, if the proposal covers 5,000
in India. persons or completes Rs. 50 lakhs of premium or any
other parameter which the Authority specifies, the
On the basis of the comments, inputs and advices received,
the Committee has drafted the final report on the proposal will deem to have been completed.
Regulatory Sandbox. 8) Strict requirements around confidentiality of
policyholder’s data have been proposed.
Following are the key recommendations of the Committee:
1) The purpose of the Regulatory Sandbox is to foster The report is attached for comments, which may be sent in
growth and increase the pace of the most innovative the enclosed format, on or before 26th February, 2019 to
companies, in a way that provides Insurtech in undersigned at randip@irda.gov.in with a copy to Mr. R K
particular and the Fintech sector as a whole with Sharma@rksharma@irda.gov.in
flexibility in dealing with regulatory requirements and
at the same time focussing on policyholder protection. Randip Singh Jagpal
CGM (Int)
2) The Authority should create a core Sandbox Committee
having dedicated personnel to monitor and supervise Cancellation of TPA Certificate of
the digital innovation activities, and provide support
and advisory to the applicants as envisaged in the draft Registration No 12 On Surrender
guidelines. The Committee would facilitate roll out of Ref. No:IRDA/TPA/ORD/CAN/035/02/2019
the experiments and seek to provide the ecosystem
Date:19-02-2019
required for the experimentation.
3) The Regulatory Sandbox would have defined entry and i) Whereas, M/S. Medicare Insurance TPA Services (I) Pvt.
eligibility criteria, boundary conditions, process flow, Ltd. (hereinafter referred to as the ‘Medicare TPA’)
timelines and success factors / exit parameters for the having its registered office at Flat No. 10, Paul
applicants, along with appropriate controls for Mansions, 6B Bishop Lefroy Road, Kolkata – 700 020,
protection and risk management. had been granted Certificate of Registration by the
Authority to act as a Third Party Administrator, vide
4) At the same time, the process and criteria would be
Certificate of Registration no. 12 with effect from 21-
flexible to provide a conducive environment for
03-2017 for the period of three years, in accordance to
encouraging and enabling a wide variety of
the ------------------provisions of the IRDA (Third Party
experimentation, including provisions for no
Administrator – Health Services) Regulation, 2016.
enforcement action orders, waivers and relaxed
reporting requirements. ii) The TPA vide letter dated 30th June 2017 had submitted
5) The committee proposes a cohort basis approach for a proposal to the Authority for sale of TPA business of
receiving applications. The applicants would include Medicare Insurance TPA Services (I) Pvt. Ltd. to M/s.
insurers or insurance intermediaries or any other entity Medi Assist Insurance TPA Pvt. Ltd., another Third Party

The Insurance Times, March 2019 45