annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10• Dissemination of industry figures on Flash GrossDirect Premium and Segment wise break-up ofthe premium data has been initiated. This isensured by the 1 st and 2 nd week of every monthrespectively, for the statistics pertaining to thepreceding month.Accounts and TaxationII.6.34 The various initiatives taken during 2009-10on matters relating to accounts and taxation of generalinsurance companies included the following:• Issue of TDS on Reinsurance Premium wastaken up with the concerned authorities. Theseefforts were supplemented by professionaladvice from Ernst & Young.• Industry’s Proposals for Union Budget 2011-12.• Industry’s views on Direct Tax Code (DTC) werepresented of the officials of Ministry of Revenue.Professional advice in the matter was taken fromPrice Waterhouse Coopers.• Industry’s views on Taxation of unrealised gainsin case of investments of insurance companies.The Finance Bill, 2010 has clarified this issue,which would result in tax savings of around`200 crore.• Industry’s views on International FinancialReporting Standards (IFRS) have beenrepresented and further discussions have takenplace with IRDA.OthersII.6.35 Participation in various initiatives organisedby multi stakeholder industry forums.7. FUNCTIONING OF OMBUDSMENII.7.1 During 2009-10, the twelve Ombudsmen centresspread across India received a total of 16,064complaints. While 8,967 complaints (56 per cent)pertained to life insurers, the remaining 7,097 (44 percent) related to non-life insurers. This was in additionto 1,395 complaints pending with various offices ofOmbudsmen as at the end of March 2009. With this,the offices of Ombudsmen handled a total of 17,459cases during 2009-10.II.7.2 During 2009-10, Ombudsmen disposed of15,190 complaints. Of these complaints, Ombudsmendeclared two-third of the complaints asNon-Acceptable/Not-Entertainable. Awards/Recommendations were issued only for twenty-oneper cent of total complaints. Other than this, six percent of the complaints were withdrawn, while eightper cent of the complaints were dismissed.• Industry’s views on Taxation of Capital gainswere represented. This was aided by professionalopinion and support provided by Ernst & Young.74II.7.3 At the end of March 2010, 2,269 cases werestill pending with Ombudsmen for adjudication.TABLE 70DISPOSAL OF COMPLAINTS BY OMBUSDSMEN DURING 2009-10Insurer Complaints Complaints Complaints No. of complaints disposed Complaintso/s as received Total disposed by way of o/s as onon 31.3.2009 during during 31.03.20102009-10 2009-10(I) (II) (III) (IV)LIFE 557 8967 9524 8636 1209 481 572 6374 888(14.00) (5.57) (6.62) (73.81)NON-LIFE 838 7097 7935 6554 1947 470 700 3437 1381(29.71) (7.17) (10.68) (52.44)COMBINED 1395 16064 17459 15190 3156 951 1272 9811 2269(20.78) (6.26) (8.37) (64.59)Notes:(I) Recommendations / Awards (III) Dismissal(II) Withdrawal / Settlement (IV) Non-acceptance / Not-entertainableFigures in brackets indicate percentages to the respective complaints disposed.