The Insurance Regulatory and Development Authority of India (IRDAI) on March 21, 2024, issued the Insurance Regulatory and Development Authority of India (Rural, Social Sector and Motor Third Party Obligations) Regulations, 2024.
The following has been stated:
• Objective:
To specify the minimum rural and social sector business that the insurers are required to underwrite under sections 32B and 32C of the Insurance Act, 1938 and the minimum third party motor insurance business that the insurer carrying on general insurance business is required to underwrite under section 32D of the Insurance Act, 1938.
• Option to fulfil the obligation:
o In cases where an Insurer commences operations in the second half of the financial year no rural, social sector and motor third party obligations shall be applicable for the said period.
o An insurer who achieves more than the specified rural, social sector and motor third-party obligations shall be suitably rewarded in such manner as may be determined by the Competent Authority.
o The obligations for the second and third years shall be determined by the Competent Authority based on the experience during the first year.
This notification will come into force from April 01, 2024.
[Notification No IRDAI/Reg/4/198/2024]
