IRDAI taskforce for using bank branch network to universalize access to insurance
IRDAI has constituted a taskforce to ensure making available insurance products to the nook and corner of the country by leveraging the vast bank branch network. While banks have the option to set up a separate legal entity for distribution of insurance products as Insurance brokers, till date, such option has not been exercised by banks.
IRDAI directions for insurers to Participate in Account Aggregator (AA) Framework as Financial Information User
The FIUs in the insurance sector are encouraged to make AA related applications multilingual to make it user friendly. The FIUs in the insurance sector shall also abide by the code of conduct as specified in the IRDAI regulations/guidelines/circulars applicable to them, including redressal of grievances of the customers.
IRDAI Task Force to suggest applicable framework post Detariffication of erstwhile tariffs
Since, de-tariffication requires de-notification of existing tariffs by the Authority and publish the same in the official gazette, it has been decided to constitute a Task Force. The Task Force is required to suggest broad prudential guidelines and address associated critical operational aspects as a guidance to Insurers.
Additional directions regarding issuance of Customer Information Sheet (CIS) by insurance companies
Insurers, intermediaries and agents shall forward the Customer Information Sheet to all policyholders and acknowledgement, physical or digital, shall be duly obtained.
Customer Information Sheet template for insurance companies
CIS highlights the obligations of policyholders to make transparent and fair disclosures of relevant material information pertaining to their health, as non-disclosure of the same may affect the claim settlement. The insurers are also required to obtain signatures of the policyholders confirming that they have noted the details of CIS and received it.
Amendment of Arbitration Clause in General Insurance policies
All policies issued under the Commercial Lines of Business shall have an Arbitration Clause. All policies issued under the Retail Lines of Business shall not have any Arbitration Clause.
IRDAI Committee for proposing Plain language for insurance policy wordings
IRDAI has undertaken this initiative considering that policyholders often find it difficult to comprehend the terms and conditions in insurance policy contract because of complexity in language used in the policy. This leads to the policyholder confused and lack of knowledge required to make informed decisions while purchasing an insurance policy.
IRDAI mandates all General Insurers carrying on motor insurance business to provide insurance to the employees travelling in employer’s vehicle
All General Insurers carrying on motor insurance business shall provide the cover to the employees travelling in employer’s vehicle (including paid driver, if applicable) under IMT-29 of the Indian Motor Tariff, compulsorily as an inbuilt coverage while issuing private car policy for such vehicles.
Modified Trade Credit Insurance Guidelines, 2021
In view of the fact that through “reverse factoring”, the financiers can take exposure on low rated or unrated buyers provided the default risk is hedged with insurers by taking Trade Credit Insurance cove, in order to facilitate “reverse factoring” transactions on TReDS platform, this modification is enacted.
IRDAI amendment to Master Guidelines on Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) 2022
Amendment states that in cases where there’s a variance between the Client Due Diligence or AML/CFT standards specified by IRDAI and those specified by insurers in the host country, foreign branches or majority-owned subsidiaries of regulated entities must adopt the more stringent of the two standards.
