annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10II.6.6 The Underwriting sub-committee wasreconstituted in 2009-10. The committee met twiceduring the year. The committee deliberated on thechanges required in the Declined Lives Database(DLD). The committee also decided to prepare adetailed roadmap on the approach to be adopted bylife insurance industry towards the medical centres /doctors who are removed from the approved list of aparticular company.II.6.7 Life Insurance awareness sub-committee metfour times during the year. The sub-committeeorganised two press meets in November 2009 atLucknow and in March, 2010 at Ahmedabad to createawareness about the importance of life insurance.These events were widely covered by the print andelectronic media in tier II cities. The CEO roundtablewas also held in Delhi on 24 th June, 2009.II.6.8 A major achievement for the life insuranceindustry was exemption from service tax in case of allULIP charges other than fund management charges.This announcement was made by the Hon. FinanceMinister while presenting the Union Budget 2010. Thiswas a big relief to the life industry.II.6.9 Life Council held a workshop on Goods andServices Tax (GST) in December 2009. The workshopwas attended by the CEOs and CFOs from the lifeinsurance industry. Ernst & Young conducted theworkshop. The Life Council is actively engaged withE&Y in preparing a final representation on thesuggested model of GST for life insurance industry.II.6.10 The Council’s website continues to carry thestatistical data, latest news and other information.Various new parameters have been included in thequarterly statistical data which has been appreciatedby both the media and the industry. The number ofhits from different geographies – national andinternational increased significantly after up-gradationof the website’s design and interlinking it with websitesof IRDA, insurance Ombudsman and all life insurers.The feedback/query/grievance forwarding mechanismhas been modified and the same continues to bemanaged by the Secretariat of the Life Council.The Life Council represented to IRDA on the followingmatters during 2009-10.II.6.11 Electronic issuance of life insurance policies.The recommendations were finalised after lot ofdeliberations and discussions among the councilmembers. The legal opinion on electronic issuancewas also sought by the Life Council and submitted toIRDA along with the recommendations of the industrycovering the following broad areas:• Insurance of persons with disabilities.• Compulsory cession of life business to GeneralInsurance Corporation (GIC).• Public Disclosures of life companies.• Introduction of UID (Unique Identification).• Relaxation from exposure norms as prescribedunder IRDA Investment (Fourth Amendment)Regulations, 2008.• Exemption from Rule 17D of the Insurance Rules,1939 for financial year 2008-09.II.6.12 In addition to IRDA, the Life Council made arepresentation on draft Direct Tax Code to JointSecretary, Tax Planning and Ministry of Finance inthe month of September 2009 to present the views oflife insurance industry. The meeting was also attendedby the Joint Secretary, Insurance and Pension division,Ministry of Finance, representatives from IRDA andthe representatives of the life insurance industry.II.6.13 Secretary General represented the lifeinsurance Council at various events in 2009-10including the FICCI’s 13 th Conference on Insurance -the Session on ‘Life Insurance 2020’, IIC conferenceon insurance business (Jaipuria Institute ofManagement, Lucknow) and Intensive Programme onHealth Insurance conducted by Prof Howard J Bolnick,etc. The Secretary General was also invited in variousrespectable events such as NDTV India show - MoneyMantra, etc.II.6.14 The Council is actively involved at variousmeetings and conferences organised by the CII,FICCI, ASSOCHAM, NIA, and other similar bodies.II.6.15 The database of terminated agents whoseservices were terminated for reasons other thannon-performance continues to grow in number andusage.71