annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10have also been stipulated under the CorporateGovernance Guidelines. Briefly, the disclosurerequirements are indicated below.Disclosures on Corporate Governance:III.10.2 All insurers are required to disclose thefollowing in their Annual Report, w.e.f., the financialyear 2010-11:• Number of meetings held of the Board ofDirectors and of the Committees mandated underthe guidelines, in the financial year.• Details of the composition of the Board ofDirectors and Committees mandated, setting outname, qualification, field of specialisation, statusof directorship held; etc.• Number of meetings attended by the Directorsand the members of the respective Committees.• Details of the remuneration paid, if any, to theindependent directors.Periodic DisclosuresIII.10.3 The Authority has mandated disclosures tobe made by the insurers in the public domain onquarterly, half yearly and annual basis w.e.f.,1 st April, 2010. The disclosures are required to bemade available on their respective websites in caseof quarterly disclosures and in newspapers in case ofhalf yearly and yearly disclosures. The periodicdisclosures not only cover the financial informationincluding solvency position, but also customersgrievance, geographical spread and key performanceratios of the insurers.Disclosures on Discontinued PoliciesIII.10.4 The IRDA (Treatment of Discontinued LinkedInsurance Policies) Regulations, 2010 mandates thelife insurers to make a separate presentation of “Fundsfor Discontinued Policies”, classifying thediscontinuance (i) on account of non-payment ofpremium; and (ii) others.Disclosures on Equity holdingIII.10.5 The insurers are required to furnish informationabout the pledge, encumbrance or any other chargecreated on the equity holding of the insurancecompany and of the promoters. These disclosures arerequired to be filed with the Authority on quarterlybasis.III.10.6 The IRDA has mandated the followingadditional disclosures w.e.f. 2009-10:• A separate statement showing the flow of fundsto the Controlled Fund has been mandated. Thisformat is required to form part of the annualfinancial statement of a life insurance company.• A separate statement furnishing details ofremuneration paid whether by way of commissionor otherwise to any person, in cases where suchremuneration exceeds `1 lakh per annum. Thisstatement is required to be filed with theAuthority on an annual basis.11. Regulating investment of funds by insurancecompaniesIII.11.1 The investment of funds by insurancecompanies is regulated under the IRDA (Investment)(Fourth Amendment) Regulations, 2008.III.11.2 The Authority has realigned the definition of‘Infrastructure facility’ with the definition given by RBIthereby creating more room for the insurers to investin infrastructure sector. IRDA vide INV/MOF/LR/006/2008-09 dated 22 nd January, 2009 further relaxed theceiling of investments in Infrastructure to 20 per centas against the existing ceiling of 10 per cent. The limitwould be combined for both debt and equity takentogether without sub-ceilings in instruments satisfyingcertain criteria.III.11.3 Further, IRDA in consultation with the Instituteof Chartered Accountants of India issued technicalguidelines on implementing systems and processesto enable a consistent and clearly documentedprocess and procedure to handle large volume ofinvestments through a third party certification modelusing Chartered Accountant firms.79