annual report 2008-09 - IRDA
annual report 2008-09 - IRDA
annual report 2008-09 - IRDA
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ANNUAL REPORT <strong>2008</strong>-<strong>09</strong><br />
In respect of the existing insurers as on the date of<br />
commencement of <strong>IRDA</strong> Act, 1999 (four non-life<br />
insurers and LIC), the Regulations provided that the<br />
quantum of insurance business to be done in the rural<br />
and social sectors shall not be less than what was<br />
recorded by them for the accounting year ended 31st<br />
March, 2002. Based on the amendment regulations<br />
notified by the Authority, the Obligations of these<br />
insurers towards the rural and social sectors for the<br />
financial year 2007-08 to the financial year 20<strong>09</strong>-10<br />
are as under:<br />
(i)<br />
(ii)<br />
average of number of lives covered by the<br />
respective insurer in the social sector from the<br />
financial years 2002-03 to 2004-05 or<br />
5.50 lakh lives, whichever is higher.<br />
It is expected that the obligations of the insurers will<br />
result in an increase of ten percent in each of the<br />
financial years <strong>2008</strong>-<strong>09</strong> and 20<strong>09</strong>-10, over the number<br />
of persons actually covered in the financial year 2007-<br />
08.<br />
(I)<br />
(a)<br />
(i)<br />
(ii)<br />
(b)<br />
(II)<br />
(a)<br />
(i)<br />
(ii)<br />
(b)<br />
Life Insurance Corporation of India (LIC):<br />
Rural Sector Obligations:<br />
Financial year 2007-08: twenty four per cent and<br />
for<br />
Financial years <strong>2008</strong>-<strong>09</strong> and 20<strong>09</strong>-10: twenty five<br />
per cent of the total policies written direct in that<br />
year.<br />
Social Sector Obligations: Twenty lakh lives<br />
should be covered for the years 2007-08 to 20<strong>09</strong>-<br />
10.<br />
Non life insurers:<br />
Rural Sector Obligations:<br />
Financial year 2007-08: six per cent and for<br />
Financial year <strong>2008</strong>-<strong>09</strong> and 20<strong>09</strong>-10: seven per<br />
cent of the total gross premium income written<br />
direct in that year.<br />
Social Sector Obligations:<br />
For the financial year 2007-08:<br />
In addition, with a view to giving a fillip to microinsurance<br />
and to aligning the rural and social sector<br />
obligations with the micro insurance regulations, the<br />
manner of compliance has been linked to the micro<br />
insurance regulations. Further, in order to provide time<br />
to insurance companies to establish operations to<br />
enable them to comply with their obligations towards<br />
the rural and social sectors, amendments have been<br />
made to the Regulations. It has been provided that in<br />
cases where an insurance company commences<br />
operations in the second half of the financial year and<br />
is in operations for less than six months as on 31st<br />
March of the relevant financial year, (i) no rural or<br />
social sector obligations shall be applicable for the<br />
said period, and (ii) the <strong>annual</strong> obligations as indicated<br />
in the Regulations shall be reckoned from the next<br />
financial year which shall be considered as the first<br />
year of operations for the purpose of compliance. In<br />
cases where an insurance company commences<br />
operations in the first half of the financial year, the<br />
applicable obligations for the first year shall be 50 per<br />
cent of the obligations as specified in these<br />
Regulations.<br />
q) Exercising such other powers as may be<br />
prescribed<br />
The Central Government did not prescribe any powers<br />
to the Authority and consequently Authority did not<br />
exercise any powers.<br />
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