The Income-tax (21st Amendment) Rules, 2020
The amendment has made the procedure for application by a banking company or insurer for a certificate under section 195(3) of the Income – tax Act, 1961, for receipt of interest and other sums without deduction of tax applicable to insurers as well.
IRDAI permits insurers to use video KYC for verification.
The insurers shall develop their application and undertake live VBIP carried out by an authorized person appointed by the insurer for the establishment, continuation, and verification of account-based relationship with the prospective customer.
Working Report on formation of an Indian Pandemic Risk Pool
The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated 01st September 2020 has published working report formation of an Indian Pandemic Risk Pool.
IRDAI permits insurance companies to issue policies electronically.
IRDI has also exempted the insurers from mandatorily sending hard copy of the document to policyholders. However, the policies will have to be sent through electronic mode on the registered e-mail.
ESIC smoothens the process of submission of life certificates for disbursement of pensions
The process requires pensioners/ family pensioners availing pension from ESIC to submit their life certificate to the head of any office of ESIC/ authorised officer with the request to forward it to the concerned Pension Disbursing Authority. The concerned officer will verify the identity and personal details of the pensioner based on the data on the said link. After this verification, he shall acknowledge the life certificate by making a remark on it that it has been submitted in his presence. The life certificate will then be forwarded to the Pension Disbursing Authority. The Disbursing Authorities shall treat the life certificate received in accordance with the above procedure as a valid life certificate and shall disburse pension accordingly.
IRDAI revises its earlier guidelines on Product Filing in Health Insurance Business.
As per the revised norms wellness and preventive feature shall be designed only with the objective of maintaining and improving good health and as part of promoting wellness and preventive regime, insurers may offer reward points to those policyholders who comply with or meet the set criteria of wellness and preventive features.
IRDAI issues dividend criteria for equity investment under approved investment.
IRDAI permitted Insurers to classify investments in Preference Shares and Equity Shares as a part of “Approved Investment” if such Shares have paid a dividend for at least 2 years out of 3 consecutive years immediately preceding.
IRDAI mandates PUC Certificates for motor vehicle insurance renewal
The IRDAI had earlier called for compliance with the Directions of the Supreme Court as laid down in the case of M. C. Mehta v/s Union of India. One of these directions was that insurance companies should ensure the existence of a valid Pollution Under Control (PUC)Certificate prior to renewing vehicular insurance. The IRDAI notes that the Central Pollution Control Board (CPCB) has expressed concerns on the status of compliance, particularly in the National Capital Region of Delhi (Delhi- NCR). It, therefore, urges the General Insurance Companies to renew motor vehicle insurance policy only if the vehicle owner provides a valid PUC Certificate. The IRDAI has categorically called for strict adherence to this direction with immediate effect.
IRDAI seeks inputs from stakeholders on the report on loss prevention and minimalization of the General Insurance Industry.
Loss prevention and minimization activities are part and parcel of what the insurers do, as it helps improve their claims experience in various ways.
IRDAI grants relaxation for submission of hard copy of regulatory returns.
Life insurers shall upload the Regulatory Returns through the BAP module without physical filing and submit a soft copy through email to Mr. S.N Jayasimhan, GM at snjayasimhan@irdai.gov.in , for returns up to 31st March 2020.
