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ANNUAL REPORT 2011-12
Assessment with Financial Action Task Force (FATF)
Recommendations as per 2004 Methodology. Post the
Evaluation and Assessment, India was granted
Membership into FATF. Insurance sector is now in seventh
year of an effective AML/CFT regime. IRDA is working
closely with various departments of the ministry/agencies
in the implementation of AML/CFT guidelines. IRDA has
initiated various measures towards effective
accomplishment of the AML/CFT guidelines in the
insurance sector.
61. Post India’s membership into the FATF in June 2010,
India is working on the Action Plan committed to FATF
Secretariat. IRDA is actively working on action points
relevant to the Insurance Sector. All the action points have
been accomplished except the one requiring effective
mechanisms on Sharing of Information. While a policy
on sharing of information is already in place, IRDA’s
application into Multilateral Memorandum of Understanding
(MMOU) of International Association of Insurance
Supervisors (IAIS) which provides an international
platform for sharing of information, is under active
consideration of Implementation Committee (IC) of IAIS.
The accession to the MMoU would provide the necessary
gateway for sharing of information.
Draft Guidelines on “Design of Life Insurance
Products”
62. The design of the life insurance products can be
complex and sometimes misleading. In order to ensure
that the life insurance products are designed by the
companies in a way that meets best interests of the
policyholder, the Authority initiated draft guidelines on this
subject. The views of the various stakeholders have been
sought and the Authority shall shortly fi nalize these
guidelines.
The salient features of the above guidelines include
provisions relating to:
Minimum death benefi t
Structure of a life insurance product
Index Linked Insurance Products
Administration of additional benefi ts and various
features of life insurance products
Minimum premium paying term of policies
Benefi t disclosures to be made
Guaranteed surrender value
Reinsurance
Management of with profi ts fund
Advance premium, Market value adjustments etc.
NASSCOM IT-User Award
63. The Authority won the NASSCOM IT-User award for
the year 2012 under the vertical award category of
Financial Services and Insurance. The award was for
recognizing the leaders among IT Adoption efforts of the
Organizations. NASSCOM (National Association of
Software and Services Companies) is the industry
association of IT and BPO companies, established in
1998. The Authority took various IT initiatives in the areas
of policyholder protection, automation of agency licensing
process, system to enable the insurers to recover the
stolen vehicle, etc., and completed successful
implementation of the applications of IRDA Agency
Licensing Portal, Integrated Grievances Management
System (IGMS) and Stolen Vehicles Recovery Information
System (SVRIS).
Performance in the first quarter of 2012-13:
64. The life insurers underwrote new business of `19,451
crore during the fi rst quarter in the current fi nancial year
2012-13 as against `18,283 crore in the corresponding
period of 2011-12, recording a growth of 6.39 per cent.
Of the new business premium underwritten, LIC
accounted for `14,451 crore (74.29 per cent market
share) and the private insurers accounted for `5,000 crore
(25.71 per cent market share). The market share of these
insurers was 72.98 per cent and 27.02 per cent
respectively in the corresponding period of 2011-12. The
life insurance industry procured premium of `1,513 crore
in ULIPs for the first quarter of 2012-13 as against `4,897
crore in the fi rst quarter of 2011-12, a decline of 69.10
per cent. The industry procured premium of `17,938 crore
in traditional business for the quarter ended June 2012
as against `13,386 crore for the quarter ended June, 2011
exhibiting a growth of 34.01 per cent.
65. The non-life insurers underwrote a premium of
`16,587 crore during the fi rst quarter of the current
fi nancial year recording a growth of 17.95 per cent over
`14,063 crore underwritten in the same period in 2011-12.
The private sector non-life insurers including health
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