The Insurance Regulatory and Development Authority of India, (IRDAI) on January 12, 2023, issued a circular regarding the Modification of Surety Insurance Guidelines.
This has a reference to IRDAI (Surety Insurance Contracts) Guidelines, 2022 issued vide Ref No. IRDA1/NL/GDUSIC/01/01/2022 dated January 03, 2022
This shall come into force on January 12, 2023
The following modifications are made namely: -
• In 6.1 which states “A General Insurer shall commence Surety Insurance business subject to” The following provision is incorporated into Clause no 6.1 (b) namely: -
a. Provided the above cap is not applicable to mono-line surety insurance companies registered for doing surety insurance business on a standalone basis. The surety insurance business of mono-line surety insurance companies shall be subject to such prudential norms as may be specified from time to time.
• In Clause no. 6.4 which states “Insurer underwriting Surety Insurance business shall comply with” clause 6.4 (a) is substituted with the following clause namely: -
a. Surety Insurance Contracts may be offered in respect of commercial surety and contract surety requirements
• All other provisions of the referred Surety Insurance Guidelines, 2022 shall remain unaltered.
[Circular No. Ref: IRDAI/NL/CIR/Misc./7/1/2023]
