IRDAI notifies rules for records to be maintained by insurers

HYDERABAD: The Insurance Regulatory and Development Authority of India notified ‘Minimum Information Required for Investigation and Inspection Regulations, 2020’ specifying the minimum information that an insurer and intermediary must maintain so as to enable investigating officers to discharge their functions satisfactorily.

These regulations will come into force after six months from date of its publication in the official gazette of the government. All insurers have been directed to maintain records such as proposals for insurance received stating the proposal number, date when proposal was signed by proposer, date of receipt of proposal, name and code of insurance agent or insurance intermediary or staff of insurer, date and amount of receipt of proposal deposit and mode of payment of proposal deposit, among others.

Every insurer has been directed to retain documents relating to claims settled, including copies of any survey, investigation or loss assessment reports in respect of every loss or damage on which a claim of less than Rs 1 lakh has been made for a period of three years. Similarly, these records have to be maintained for a period of five years in respect of loss or damage on which a claim of Rs 1 lakh or more but less than Rs 10 lakh has been made.

Insurers and intermediaries have been told to put in place an appropriate policy on maintenance of records and destruction of old records, both in physical and electronic form, considering nature, importance, business needs and other applicable legal requirements.

Source: The Times of India