Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2017 (Exposure Draft)
Exposure Draft
Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2017
In exercise of the powers conferred by section 114A of the Insurance Act, 1938 (4 of 1938), read with sections 14 and 26 of Insurance Regulatory and Development Authority Act,1999 (4 of 1999), the Authority in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely: -
1. Short title and commencement. --
(1) These regulations may be called the Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2017.
(2) These regulations replace the "Insurance Regulatory and Development Authority (Appointed Actuary) Regulations, 2000.
(3) They shall come into force from the date of their publication in the Official Gazette.
2. Definitions.-
(1)In these regulations, unless the context otherwise requires ----
(i) "Act" means the Insurance Act, 1938 (4 of 1938);
(ii) "Actuary" means an actuary as defined in clause (a) of sub-section (1) of section 2 of Actuaries Act 2006;
(iii) "Appointed Actuary" means an actuary mentioned in Regulation 3 below;
(iv) "Authority" means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
(v) "Institute of Actuaries of India " means a statutory body established under Section 3 of The Actuaries Act 2006 (35 of 2006) for regulation of profession of Actuaries in India.
(vi) "Professional Standard" means the standard of practice specified by the Institute of Actuaries of India by issue of guidance notes/Actuarial Practice Standard to its members.
(vii) "Resident in India" means any individual as defined in Section 6 subsection (1) of Income Tax Act 1961.
(2) All words and expressions used herein and not defined herein but defined in the Insurance Act, 1938 (4 of 1938), or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall have the meanings respectively assigned to them in those Acts.
3. Procedure for Appointment of an Appointed Actuary. ---
(1) An insurer registered to carry on insurance business in India shall, subject to sub-regulation (2) and sub-regulation (5) appoint an actuary, who shall be known as the 'Appointed Actuary' for the purposes of the Act.
(2) A person shall be eligible to be appointed as an appointed actuary for an insurer, if he or she shall be:
(i) Ordinarily resident in India
(ii) A Fellow member or an Affiliate member in accordance with the Actuaries Act,2006
(iii) The Fellow member or an Affiliate member should have specialization (as evidenced by qualification and/or working experience) in:
a. Life Insurance for Life insurer / Life reinsurer
b. General insurance for General insurer / General reinsurer
c. Health insurance for Stand-alone Health insurer/ Health reinsurer
Provided, however, the syllabus and reading material constituting element of study for such specialization and requirements for issuing the certificate of practice for Appointed Actuary shall be to the satisfaction of the Authority.
(iv) A person with 5 years of post-qualification experience.
(v) The above post qualification experience should be relevant for the nature, scale and complexity of the risks inherent in the insurer''s business for whom the application for the Appointed Actuary is being made. Such relevant experience should be demonstrable with applicable professional and other standards and should include the work relating to annual statutory valuation for at least one year.
(vi) An employee of the insurer.
(vii) A person who has not committed any breach of professional standard/other misconduct.
(viii) A person against whom no disciplinary action by the Institute of Actuaries of India or any other actuarial professional body is pending;
(ix) Not an appointed actuary of another insurer;
(x) A person who possesses a Certificate of Practice issued by the Institute of Actuaries of India
(xi) Not over the age of 65 years.
(3) An insurer shall seek the approval of the Authority for the appointment of appointed actuary, submitting the application in Form IRDA AA-1
(4) The Authority shall, within thirty days from the date of receipt of application, either accept or reject the same:
Provided that before the rejecting the application, the Authority shall give an opportunity of being heard to the insurer.
(5) An insurer, who is unable to appoint an appointed actuary in accordance with sub-regulation (2), shall make an application to the Authority in writing for relaxation of conditions. The Chairperson of the Authority shall issue guidelines from time to time regarding the transitory...
To continue reading
Request your trial