CIRCULAR

Attention of insurers is invited to Section 64 UC of the Insurance Act, 1938, which authorizes TAC to control and regulate “any risk” or “class or category of risks”... “Which, in its opinion, it is proper to control and regulate”. Attention is also invited to Section 14 (2) (i) of the IRDA Act, 1999 which authorizes the IRDA to control and regulate general insurance business “not so controlled and regulated by the Tariff Advisory Committee”.

In the context of the proposed detariffing of the general insurance products, the need for data for both the insurer and the Regulator has become more pronounced than ever. Authentic and error free data has to flow consistently to a national data repository. The varied requirements of data by the Regulator, the insurers and industry and the consumers have to emanate from this repository with due aggregations. The confidentiality of the data has to be protected and the sensitivities associated with a competitive market are to be respected.

In this context, insurers attention is also invited to Section 64 UE of the Insurance Act, 1938, which inter-alia, authorizes Tariff Advisory Committee to require and collect information, etc. The data repository work has already commenced at TAC focusing initially on the motor and health insurance segments and the results so far are encouraging.

The Authority, therefore, reiterates that TAC will continue to collect data from all insurers in respect of all branches of business in the tariff-free regime. The Authority also wishes to clarify that in the tariff-free scenario also, the TAC continues to be empowered to collect data from the insurers and take such actions including imposition of penalties in consonance with the Act provisions to ensure timely and error free submission of data. It would be imperative for all insurers / reinsurers to provide to TAC the requisitioned data in the mode, manner and periodicity prescribed by TAC. All directives and correspondence in this regard will emanate from TAC, which will be the custodian and manager of the data of the insurance industry.


(C.S. Rao)
Chairman