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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (OBLIGATIONS OF INSURERS TO RURAL OR SOCIAL SECTORS) REGULATIONS, 2000
In exercise of the powers conferred by section 32C read with section 3213 of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely:-
Regulation 1 Short title and commencement
(1) These regulations may be called the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural or Social Sectors) Regulations, 2000.
(2) They shall come into force from the date of their publication in the Official Gazette.
Regulation 2 Definitions
In these regulations, unless the context otherwise requires-
(a) "Act" means the Insurance Act, 1938 (4 of 1938);
(b) "Authority" means me Insurance Regulatory and Development Authority established under the provisions of section 3 of the Insurance Regulatory and Development Authority Act, 1999(41 of 1999);
(c) "rural sector" shall mean any place as per me latest census which has-
(i) a population of not more man five thousand;
(ii) a density of population of not more than four hundred per square kilometre; and
(iii) at least seventy-five per cent of the male working population is engaged in agriculture.
(d) "social sector" includes unrecognised sector, informal sector, economically vulnerable or backward classes and other categories of persons, both in rural and urban area;
(e) "unorganised sector" includes self-employed workers such as agricultural labourers, bidi workers, brick kiln workers, carpenters, cobblers, construction workers, fishermen, hamals, handicraft artisans, handloom and khadi workers, lady tailors, leather and tannery workers, papad makers, powerloom workers, physically handicapped self- employed persons, primary mi 1k producers, rickshaw pullers, safari karmacharis, salt growers, sericulture workers, sugarcane cutters, tendu leaf collectors, toddy tappers, vegetable vendors, washerwomen, working women in hills, or such other categories in persons.
(f) "economically vulnerable or backward classes" means persons who live below me poverty line;
(g) "other categories of persons" includes persons with disability as defined in the Persons with Disabilities (Equal Opportunities, Protection of Rights, and Full Participation) Act, 1995, and who may not be gainfully employed; and also includes guardians who need insurance to protect spastic persons or persons with disability,
(h) 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 (4 of 1999), shall have me meanings respectively assigned to them in those Acts.
Regulation 3 Obligations
." Every insurer, who begins to carry on insurance business after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall for the purposes of section 3213 and regulation 32C of the Act, ensure that he undertakes the following obligations, during the first five financial year, pertaining to the persons in-
(a) rurar sector.
(i) in respect of a life insurer, -
(I) five per cent, in the first financial year;
(II) seven per cent, in the second financial year;
(III) ten per cent, in the third financial year;
(IV) twelve per cent, in the fourth financial year;
(V) fifteen per cent, in the fifth year; of total polices written direct in that year;
(ii) in respect of a general insurer, -
(I) two per cent, in the first financial year;
(II) three percent, in me second financial year:
(III) five per cent, thereafter, of total gross premium income written direct in that year
(b) social sector, in respect of all insurers, -
(I) five thousand lives in the first financial year;
(II) seven thousand five hundred lives in the second financial year;
(III) ten thousand lives in the third financial year;
(IV) fifteen thousand lives in the fourth financial year;
(V) twenty thousand lives in the fifth year: Provided that in the first financial year, where the period of operation is less than twelve months, proportionate percentage or number of lives, as the case may be, shall he undertaken: Provided further that, in case of a general insurer, the obligations specified shall include insurance for crops. Provided further that the Authority may normally, once in every five years, prescribe or revise the obligations as specified in regulation 3.
Regulation 4 Obligations of existing insurers
(1) The obligations of existing insurers as on the date of commencement of the IRDA Act shall be decided by the Authority after consultation with them and the quantum of insurance business to be done shall not be less than what has been recorded by them for the accounting year ended March 31, 2000.
(2) The Authority shall review such quantum of insurance business periodically and give directions to the insurers for achieving the specified targets.
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