“IRDAI (Reinsurance Advisory Committee) Regulations, 2019” establish guidelines for the creation and operation of the Reinsurance Advisory Committee. This committee is tasked with advising the Insurance Regulatory and Development Authority of India (IRDAI) on issues related to reinsurance. Here’s a detailed summary of the regulation:
General Provisions
Title and Commencement: These regulations are known as the IRDAI (Re-Insurance Advisory Committee) Regulations, 2019, and they came into effect upon their publication in the Official Gazette.
Objective: To set up a specialized committee that can provide expert advice and recommendations to IRDAI on matters concerning reinsurance.
Definitions
Key terms such as “Authority,” “Committee,” “Chairperson,” “Member,” and “Reinsurance” are defined to ensure clarity and consistency throughout the document.
Composition of the Committee
Members: The committee is composed of members appointed by the IRDAI, including experts in the field of reinsurance, representatives from insurance companies, and other stakeholders in the reinsurance sector.
Chairperson: The chairperson of the committee is selected by the IRDAI and is responsible for leading the committee’s activities.
Functions and Responsibilities
Advisory Role: The committee advises the IRDAI on a wide range of topics related to reinsurance, including regulatory frameworks, market development strategies, and best practices in risk management.
Recommendations: It is tasked with making recommendations on proposed regulations, guidelines, or other policy measures.
Meetings and Procedures
Frequency of Meetings: The committee meets regularly, at intervals specified by the IRDAI, or as needed to address specific issues.
Meeting Procedures: Detailed procedures govern how meetings are to be conducted, including notice periods, agenda setting, and decision-making processes.
Documentation: Minutes of all meetings are to be recorded and maintained, ensuring transparency and accountability.
Reporting and Compliance
Reports to IRDAI: The committee is required to report its findings and recommendations to IRDAI, which may include periodic reports or specific reports on particular issues.
Compliance with Directives: The committee operates under the direct supervision of IRDAI and must comply with any directives or guidelines issued by the Authority.
Amendments and Interpretation
Amendment of Regulations: IRDAI retains the authority to amend these regulations as needed to enhance the effectiveness of the committee or to respond to changing conditions in the reinsurance market.
Interpretation: Any questions of interpretation of these regulations are to be resolved by the IRDAI.
These regulations ensure that there is a formal mechanism in place for expert consultation and advisory in the field of reinsurance, aiding the IRDAI in making informed decisions that foster a robust and stable reinsurance market in India.
