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ANNUAL REPORT 2011-12
authority, has full power and jurisdiction to take the
records and documents from erstwhile President
(plaintiff). “IRDA” also has the power to preside over
the administrative offi ce of the “IIISLA” and after the
expiry of the presidentship of “IIISLA”, the plaintiff is
bound to handover the records and documents to the
defendants. The Court directed the plaintiff to handover
all the records, documents and accounts related to
“IIISLA” to “IRDA” within three weeks from the date of
Order and if such records, documents and accounts,
are not with the plaintiff, then, the plaintiff is directed
to fi le affi davit stating where such records, documents
and accounts are kept.
II.3.6 W.P (C) Nos. 14989/2011 and 16459/2011 filed
before High Court of Orissa.
The Writ petitions were filed before Honourable Orissa
High Court challenging the IRDA notification Ref: IRDA/
NL/NTFN/MOTP/066/04/2011 dated 15 th April, 2011.
The said notifi cation was issued by the Authority in
exercise of power vested under section 14 (2) of IRDA
Act 1999, revising the Motor Third Party insurance
premium with effect from 25 th April, 2011.
Order: The H’ble High Court of Orissa initially granted
interim stay against the notifi cation issued by the
Authority revising the Motor Third Party premium.
Subsequently, by its Common Order dated 24 th August,
2011 the H’ble Division Bench dismissed the said
petitions and upheld the notifi cation issued by the
IRDA. The H’ble High Court in its Order relied upon
the decision of Balco Employees Union vs Union of
India and others AIR 2002 SC 350; and LIC of India
vs Consumer Education and Research Centre (1995)
5 SCC 482. The H’ble Court also considered the
decision of the Madras High Court in a similar matter
and upheld the notification of the Authority revising the
Motor Third Party premium. Further, the H’ble High
Court allowed the insurance companies to collect the
difference amount due from the petitioner i.e., the
transporters Association who had obtained an interim
stay against the impugned notifi cation.
Similar writ petitions W.P. 14185 of 2011 and 18 batch
cases and W.P.42848/2011 fi led challenging the IRDA
notifi cation before Jabalpur High court and Allahabad
High court respectively were also dismissed based on
the rulings of Madras and Kerala High court. The Stay
on the said notifi cation revising Motor Third Party
premium subsists only before the H’ble High Court of
Calcutta.
II.4 INTERNATIONAL CO-OPERATION IN
INSURANCE
International Association of Insurance Supervisors
(IAIS)
II.4.1 The International Association of Insurance
Supervisors (IAIS) established in 1994 is a global
standard setting body whose objectives are to promote
effective and globally consistent regulation and
supervision of the insurance industry in order to
develop and maintain fair, safe and stable insurance
markets for the benefit and protection of policyholders;
and to contribute to global fi nancial stability. Over the
years, the membership, which includes insurance
regulators and supervisors, has grown to over 190
jurisdictions representing some 140 countries thus
covering 97 per cent of insurance premiums collected
all over the world. The IAIS also has over 120
organizations and individuals representing professional
associations, insurance and reinsurance companies,
international fi nancial institutions, consultants and
other professionals as observers. This all-embracing
involvement has enabled evolution of consistent
supervisory standards and practices amongst the
regulators while facilitating greater knowledge sharing
amongst all the participants in the industry. In addition,
it recognizes the important contribution that strong
supervisory regimes make which leads to fi nancial
stability both within the respective jurisdictions and
across markets. The IAIS provides an effective forum
for standard-setting and implementation activities by
providing opportunities to both practitioners and policy
makers to share their expertise, experience and
understanding.
II.4.2 The IAIS’s activities are undertaken with active
guidance of its Executive Committee (EC), which
comprises of 24 members elected from different
regions across the globe. The EC is complemented by
the Technical Committee, the Implementation
Committee and the Budget Committee, supported by
their Sub-Committees and working parties. There are
5 Members representing Asian region in the Executive
Committee and the Chairman, IRDA, is one of the
Members representing from the region, others being
the insurance regulators from China, Japan, Korea
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