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IRDAI (Outsourcing Of Activities By Indian Insurers) Regulations, 2017

Insurance Regulatory and Development Authority of India Notification dated 20th April, 2017

F. No. IRDAI/Reg/5/142/2017.—In exercise of the powers conferred under Section 114A (2) (zd) of the Insurance Act 1938 and Section 14(2)(e) of the IRDA Act 1999 read with Section 26 of the IRDA Act 1999 and in consultation with the Insurance Advisory Committee, the Authority hereby makes the following regulations, namely: —

1. SHORT TITLE AND COMMENCEMENT

(i) These Regulations may be called IRDAI (Outsourcing of Activities by Indian Insurers) Regulations, 2017.
(ii) They shall come into force from the date of their publication in the Official Gazette of the Government of India and supersede the Guidelines issued in this regard vide Reference: IRDA/Life/CIR/GLD/013/02/2011 dated 01-02-2011 and any clarification circulars issued in this regard.

2. APPLICABILITY
(i) These Regulations are applicable to all Insurers registered with the Insurance Regulatory and Development Authority of India excluding those engaged in reinsurance business. If an Insurer is engaged in both direct Insurance as well as Reinsurance business, these regulations are applicable only in respect of direct Insurance business of such Insurers.
(iii) These Regulations are applicable to outsourcing arrangements entered into by an Insurer with an outsourcing service provider located in India or outside India.

3. OBJECTIVE
(i) To ensure that insurers follow prudent practices on management of risks arising out of outsourcing with a view to preventing negative systemic impact and to protectthe interests of the policyholders.
(ii) To ensure sound and responsive management practices for effective oversight and adequate due diligence with regard to outsourcing of activities by Insurers.



REST OF THE CONTENTS OF THE ABOVE REGULATIONS CAN BE ACCESSED HERE - LINK

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