IRDA (Distribution of Surplus) Regulations, 2002

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INSURANCE REGULAlORY AND DEVELOPMENT Al:TIIORIT\. HYDERABAD l'\, I R \ '\( 'E IU-.(:t I. UOIH .\ '-D l)F\ El.01'\ff'\T \I TIIORI IT (lll'\IIUIII' 110'\ <H ,1 IU'I I ,, Rl.(,I I \TIO'\,. 21102 I\OTIFIC \TIO:\ Ne\\ Dclht. the I 1th DcL·cmbcr 2002 E Nu. I/IRDA/ Rcg./12/21102.-ln exercise of Lh,· jXl\\Cf5 ct,nlcrrcd b~ sec1io11 -1-'J and 11-1-A of the l11s11r~11cc ,\~1. 1 •nx. (-1- of I IJ.l8) the AuLhorit,. m consultalion ,, ith the ln~urnncc Ad, •so~ Con111u11cc. hcreb, makes the follo,\111g rcgul,111011s. namcl~ I. Short till£' ilnd commcnccm£'nl.---( I) These regulmions ma~ be callc:<l the Insurance Regulator) and Devclopmcnr Authority (D1s1rib111ion of Surplus) Rcg11lal 1ons. '.W02 (2) lhc> shall c0mc into for1:c from the dare ol thcir publtc1111011 in the O11icial Gazelle. [ 'WT 111-4] '-lTffl <tiT ~: ~ J l. Definitions --(I) In these regulations. unless 1he con1e,t othcmi~e n:quin:s ---- (a) -Act' means the Insurance Act. 1938(4 of 1938): and (b) ··rtuthcmtr ·· means Insurance Regulatory und Development Au1hont) established under the provisions of section 3 of 1he Insurance Regulawry and De\elopmenl I\Ulhority /,u. 19;9 l4 I of l...,._,9). (c) ··par11npa1111.e. polic1/mlders · means the holders of ·par pohcti:s· and ·policies with deferred participation in profits • which i1ri: defined in the INSURANCE REGULATORY AND DPVELOPMCNT AUTHORITY (Actuaria_l Report ,111d Abstract Regulations) REGULA! IONS 2000. (d) "11011 p11rt1L·1pc1t111J! po/1<.:r/11,/da.\ •• means 1hi: holders of ·non par policies• ,,h1ch is defined m the IN~l RAM I REGULATORY AND DEVELOPMENT AUTHORITY (Ac111ari,1I Report and Ahstract Regulations) RL<,1 LA I ION\ :!OOO: (e) All word~ .111d e,pressions used herem and not delined hen:in but dt!lini:d in thi: Insurance Act. 1938 (4 of 1938). or in 1hc lnsuranci: Rcgul.1tol) and De,elopment Au1ho11t) Act. I 99() (41 or I 99<l). or in an) Rules or Regulations made there undc, shall have thi: meanings respective!) assigncd 10 them in those: Ac:1s or Rules or Rcgulntions 3. ~ Lire fond,.---- For thc purpose of these regulations." i1h efti.·.:i from 1-i April 2003.-- ( I) a lifo insurer rt.:gbti:rcd undcr !>CCI ton .1 of tlw Insurance Act. I 938 shall he rl'llllired to maintam 'l'p,11 akl\ (a) a lifo fund for participating polic)hllldl•ts and (b) a life fund for non p,11ticipating polic:)holdcr,. (}) A failure to compl) \\1th the ri:q11i1.:mcn1, of sub-rcgul.t11on (I) nboH' slwll mean that 1lw ltte fund maintained b) the insurer shall be fort he benefit of thc partidp.11111g pultc) holders 0111) . .$. Procedurr for di.stribution of surplus. - ,\ liti: insurer 111.1). on thc .,d,icc of h,~ .1ppo111tcd ac:111ar). rcsenl.' ., pint or thl.' auuarial sut plus (,1lso rcfcrred to as valuation surplus) arising 0111 or ,1 \'al11;11io11 of ,,s~cts and hahilities made: fi11 ., lim11a:ial ,c,ll in :1c:c:urdanc:e "ith lnsuranc:c Regul.11or) and l)c,clop111c111 ,\utlmrtt) (,\c1ua11,1I Rcport and ,\hs11~1c1 l lfrgula'.,on,. 2000. to ib sh,trcholdcrs. "hich :.hall bc:- (a)· one hunc.lrcd per ccnt. in casc of a lifo fund maintained for non-participating 1wliC) lmklc1s: (hi 1>ne-111111h M the ">urplus ,1llc1c:11ed to po lie) holdcrs in c.1,l· of .1 Iii~· litnd maintaincJ for partidpating pol it:) 111,ldcr, Pro,ided that an 111'111'1!1' ,hall. ho\\e,cr. be rcq11iicd to 11h1,1i11 p11m anprm,tl ol' thl.' l\11th11ri1, 111 l.tSI.'~ 11hl 0ll" thl· ,.iid allncation is not the unc-ninth ol'tlw surplus. Prm iJcd titnhe1 that an i11surcr shall 1101 alluc,11l' or rcsl'l'\l' l'\CCl'ding ten pcr l'Cllt ot lhl' ~.,id ,1ctu,1r1,il ,111 plu, 1,, 11 ~ shareholder ... :-.; R,\l\;G,\CH1\RY. (h:urman Printed bV lho Manarior Govl 01 lndl.t P,ess. n,ng floa,J M,W"flU", Now De1111 11001i-1 1111d Publ:SMd by the ConUoller ol Put~lca110ns. OeU1I I 1005'4 .!002