It is necessary to have clear-cut guidelines for the smooth implementation and operation of order of preference as specified in Regulation 28 (9) of IRDAI (Registration and operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 as amended.
The Authority hereby constitutes the following committee to examine the above aspect and make necessary recommendations:
1. Shri. M.Ramaprasad, Chairman
2. Representative of The New India Assurance Company Limited, Member
3. Representative of ICICI Lombard General Insurance Company Limited, Member
4. Representative of GIC Re, Member
5. Representative of Aegon Life Insurance Company Limited, Member
6. Representative of Max Bupa Health Insurance Company Limited, Member
7. Representative of Marsh India Insurance Brokers Private Limited, Member
8. Representative of Lloyd’s India (applicant for branch in India), Member
9. Representative of Munich Re (applicant for branch in India), Member
10. Shri.R. Chandrasekaran, Secretary, General Insurance Council, Member Convenor
The Terms of Reference of the Committee shall include the following-
1. Laying down the procedure and modus operandi for order of preference for cessions in respect of all life, general and health insurance business
2. Guidelines for implementation of the said procedure including spelling out the rights and obligations of all stakeholders involved
3. Laying down the procedure for seeking quotations on best terms, order of preference-wise
4. Timelines for offer of best terms, order of preference-wise
5. Timelines for acceptance/non-participation/partial participation
6. Next steps if the business is not placed with the Indian Reinsurer or the Foreign Reinsurer Branches falling under 4 (a) of the Regulations, with step-wise clarity relating to rest of the preferences with time-frames
7. Any other matter pertinent to the aspect of order of preference such as those relating to protection of policyholders’ interests etc.
The Committee is required to submit its comprehensive report with clear-cut recommendations including draft guidelines on or before 9th December, 2016.
