The Insurance Regulatory and Development Authority of India (IRDAI) notified the Insurance Regulatory and Development Authority of India (Minimum Information Required for Investigation and Inspection) Regulations, 2020.
These regulations are divided into three parts and they contain provisions applicable to all insurers, intermediaries and insurance intermediaries.
The new regulation is applicable on all Insurers and Intermediaries or Insurance Intermediaries, as defined under the Act or IRDA Act, 1999, for the purpose of investigation and inspection by the Authority.
The IRDAI notified the new regulation with the aim of specifying minimum information required to be maintained by insurer, intermediary or insurance intermediary, in order to enable the investigating officer to discharge satisfactorily his or her functions.
As per the new regulation every insurer shall maintain at their principal place of business in India, all records, information, data, documents, books or registers required to be maintained by them under the extant provisions of the Act, Rules, Regulations, Guidelines, Circulars or Directions applicable to the insurers and provisions of any other law, as applicable to its business.
It is further clarified that every insurer shall obtain and maintain a legally valid receipt for every payment made and issue a legally valid receipt for every payment received and shall maintain the invoices and receipts filed in a systematic manner either chronologically or in some other convenient order.
“The insurers, intermediaries and insurance intermediaries shall put in place appropriate policy, approved by their Boards, on maintenance of records and destruction of old records, both physical and electronic form, considering the nature, importance, business needs and other applicable legal requirements,” the regulation said.
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