The Insurance Regulatory and Development Authority of India (IRDAI) on February 27, 2025, issued the notification regarding the Obligatory Cession for the financial year 2025-26.
The following has been stated namely: -
• This notification shall be applicable to Indian Re-insurers and other applicable insurers as per the provisions of Section 101A of the Insurance Act, 1938
• The percentage cession of the sum insured on each General Insurance Policy to be reinsured with the Indian Re-insurer(s) shall be 4% in respect of insurance attaching during the financial year beginning from April 01, 2025 to March 31, 2026, except the terrorism premium and premium ceded to Nuclear pool wherein it would be made ‘NIL’. The entire Obligatory Cession is to be placed with General Insurance Corporation of India (GIC Re) only.
• The following terms and conditions have also been mentioned namely: -
o Notice of information on cession
o Commission
o Profit Commission
[Notification No. IRDAI/RI/6/213/2025]
