“Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers Transacting General or Health Insurance Business) Regulations, 2016” covers detailed guidelines and rules pertaining to the management of expenses for insurers involved in general or health insurance business in India. Here’s a detailed summary of the document:
Title and Application:
The regulations are titled as pertaining to the management of expenses for insurers in general or health insurance businesses.
They apply immediately upon publication and affect all such insurers operating within India.
Definitions:
Defines terms such as “Act” referring to the Insurance Act, 1938, and “Authority” referring to the Insurance Regulatory and Development Authority of India (IRDAI), among other definitions relevant to the regulations.
Scope and Coverage:
The document specifies the categories of expenses that can be managed under these regulations, including commissions to agents, costs of acquiring insurance business, and operational expenses.
Expense Management:
Insurers must maintain well-documented policies for the allocation and apportionment of management expenses across various functions and must report these details to the Authority.
There are specific provisions for how insurers should handle expenses exceeding prescribed limits.
Reporting Requirements:
Insurers are required to submit detailed periodic reports on their management expenses. These reports need to be audited and certified by statutory auditors.
Compliance and Penalties:
Details the compliance requirements and the penalties for failing to adhere to these regulations, including potential restrictions on business operations and financial penalties.
Amendments and Authority:
The Authority retains the power to amend these regulations and to issue further instructions as necessary to ensure compliance and effective management of expenses.
Transitional Provisions:
Special provisions are included for transitioning from previous regulations to these new standards, ensuring a smooth changeover for all insurers.
This document lays out comprehensive rules and guidelines designed to standardize and streamline expense management practices among insurers transacting general or health insurance business, ensuring transparency and efficiency in operations.
