Foreign Reinsurers Branch Offices Registration and Operations Amendment Regulations 2016

REGD. NO. D. L.-33004/99

भारत का राजपत्र

The Gazette of India

EXTRAORDINARY भाग III—खण्ड 4 PART III—Section 4 प्राधिकार से प्रकाशित PUBLISHED BY AUTHORITY

सं. 49] No. 49] नयी दिल्ली, वृहस्पतिवार, फरवरी 4, 2016/माघ 15, 1937 NEW DELHI, THURSDAY, FEBRUARY 4, 2016/MAGHA 15, 1937

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 28th January, 2016

IRDAI (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) (First Amendment) Regulations, 2016

F. No. IRDAI/Reg/1/113/2016.—In exercise of the powers conferred by section 3, 6 read with 114A(a) of the Insurance Act, 1938, and sections 14 read with 26 of the Insurance Regulatory and Development Authority of India Act, 1999, the Authority, in consultation with the Insurance Advisory Committee hereby makes the following regulations, namely:

1. Short title and commencement.—(1) These regulations may be called the Insurance Regulatory and Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) (First Amendment) Regulations, 2016.

(2) They shall come into force on the date of their notification in the Official Gazette.

2. Regulation 4 shall be substituted with the following:

“Regulation 4 - Requisition for registration application

An applicant shall make a requisition for registration application under regulation 3 for reinsurance business in any one of the following:

• a) Category I – wherein the branch office of a foreign reinsurer shall maintain a minimum retention of 50% of the Indian reinsurance business;
• b) Category II – wherein the branch office of a foreign reinsurer shall maintain a minimum retention of 30% of the Indian reinsurance business.”

3. In Regulations 12, 13, 15 and 16 wherever the words “Chairperson of the” are appearing, they shall be omitted.

4. In Regulation 16(g) the words “to the extent possible” after the words “in its operations” shall be omitted.

5. Regulation 28(9) shall be substituted with the following:

“Every Indian Insurer shall obtain best terms for their facultative and treaty surpluses from Indian reinsurer(s) having a minimum credit rating which is having atleast good financial security characteristics from any of the internationally renowned credit rating agencies for the previous three years and also from atleast three entities which have been granted certificate of registration under Regulation 4(a) of these regulations. The Indian insurer shall then offer the best terms for participation in the following order of preference;

• (a) To the Indian re-insurer(s) having a minimum credit rating as given above and thereafter to those granted certificate of registration under regulation 4 (a) of these Regulations.
• (b) To other Indian re-insurer(s) or to those granted certificate of registration as per regulation 4 (b) of these regulations.
• (c) To the branch offices of foreign reinsurers set up in Special Economic Zone, only after having offered to all entities in (a) and (b) above
• (d) The balance, if any, may thereafter be offered to Indian Insurers and overseas reinsurers

Explanation - The Authority will undertake a review of the working of these regulations and in particular operation of Regulation 28(9) – order of preference for cessions by Indian insurers after a period of one year based on the reporting’s made to it.

T. S. VIJAYAN, Chairman [ADVT. III /4/Exty/161/349]