The authority has modified some guidelines of reporting the business generated through bancassurance channel. Insurers have to abide by them from March 31, 2012.
After visiting various insurance offices that have been usingthe bank insurance model (bancassurance), IRDA has found shortfalls in the reporting process. The regulator hencemade it clear in a recent circular that insurers, employing bancassurance as another channels for distribution, must take the necessary steps to make their IT processes efficient as per IRDA standards.
“Some of the insurers already have robust IT backed systems/processes in place to ensure compliance with stipulations as regards limits on various expense heads.In case of others, there was a felt need for building up such platforms and ensure that they function at the desired levels of effectiveness and efficiency,” says IRDA.
The authority has also modified some guidelines of reporting business generated through banking channel. Insurers have to abide by the following changed guidelines from March 31, 2012.
1. Details of various payments made through the bancassurance channel shall now be made part of annual filing as against half-yearly filling stipulated presently in place.
2. Insurers are required to file the details of remuneration paid, whether by the way of commission or otherwise to any person, in cases where such remuneration exceeds Rs. 5 lakh per annum in place of the threshold of Rs. 1 lakh per annum laid down earlier. This threshold is, however, not only applicable for bancassurance channel but for entire business generated / payouts made.