The Insurance Regulatory and Development Authority of India (IRDAI) on February 20, 2023, issued a notification regarding the treatment of inward Co-Insurance while reporting MTP Obligations.
According to the Insurance Act of 1938, any insurer conducting general insurance business must write a certain minimum percentage of third-party risks after the Insurance Laws (Amendment) Act of 2015 takes effect as the regulations may provide, for motor vehicles.
The obligations of an Insurer in respect of Motor Third Party Insurance Business for every Financial Year are also specified in IRDAI (Obligation of Insurer in Respect of Motor Third Party Insurance Business) Regulations, 2015.
Where insurers undertake Co-insurance arrangements as part of the risk-sharing program, it is clarified that the inward co-insurance shall not be considered for the purpose of reckoning compliance with the above-referred regulations.
[Notification No. IRDAI/NL/CIR/MTP/54/02/2023]
