GENERAL CIRCULARS - 2001,2002 & 2003
| Cir No | Date | Subject | |
| F&U\1\2001 | 31/01/2001 | File and Use Procedure | |
| F&U\2\2001 | 14/08/2001 | FileandUseProcedure-Clarificationregarding Scope of Cover and Tariff Rates | |
| TAC/1/2001 | 10-08-2001 | Secretary, Tariff Advisory Committee | |
| TAC/2/2001 | 28-09-2001 | Application of a surcharge on premium to cover risks arising on account of terrorism | |
| TAC/3/2001 | 01-10-2001 |
Application of a surcharge on premium to cover risks arising on account of terrorism |
|
| TAC/4/2001 | 15-11-2001 |
Appointment of Shri R.C. Sharma, IRDA as Member, Tariff Advisory Committee |
|
| TAC/5/2001 | 19-12-2001 |
Renaming of Bombay, Calcutta and Madras Offices of Tariff Advisory Committee |
|
| TAC/6/2001 | 20-12-2001 |
Rationalisation and Renaming of the various Committees and Sub-Committees of Tariff Advisory Committee. |
|
| TAC/23/2001 | 21-12-2001 |
Application of a surcharge on Premium to cover risks arising on account of Terrorism |
|
| TAC/1/2002 | 10-05-2002 | Constitution of Technical Committees of TAC | |
| TAC/1/2003 | 28-04-2003 | Discount in premium in lieu of Agency Commission | |
| TAC/2/2003 | 11-06-2003 | Discount in Premium in lieu of Agency Commission | |
| TAC/3/2003 | 31-12.2003 | Submission of Annual Report to TAC |
F & U \1 \2001 January 31, 2001
Sub : File and Use Procedure - Undertaking
In continuation to IRDA’s Circular No.IRDA\GEN}FUP\VER.1.0\ Dec. 2000 on the above subject, Insurers are hereby informed that Tariff Products filed with IRDA or TAC in respect of existing or new products should necessarily be submitted alongwith an Undertaking which would read as follows:
"It is agreed that the products filed with the TAC and the approval thereof are subject to all the rates, terms, conditions, wordings etc as are printed in the respective relevant applicable tariff books as well as the circulars issued thereunder from time to time and should there be any discrepancy noticed in the said products at a later stage, the provisions of the relevant applicable tariff books and the circulars issued thereunder from time to time shall be final and binding".
The Undertaking should be signed by the Principal Officer \ Chief Executive Officer of the Company.
SECRETARY
F & U \2 \2001 August 14, 2001
Sub : File and Use Procedure - Clarification regarding
Scope of Cover and Tariff RatesIn view of certain queries raised by Insurers as regards the scope of cover and applicability of rates in respect of Tariff Products, the matter is clarified hereby as follows:-
Tariff has to be observed by all insurers - as a benchmark, below which no insurance company can go. The insurers are also not permitted to cancel or delete covers that are granted and are available to insureds under the terms and conditions of the Tariff. For example, if under a motor policy, certain essentials are covered, an insurer cannot cut down some risks from being covered and charge a premium different from the tariff.
An Insurer, by using the clarification, ‘ Tariff rates are the minimum rates .. .. .. insurers may charge rates higher than those provided under the tariff ’, cannot enhance premium rates across the board to affect all insureds. The clarification only enables an insurer to pick and choose an insured, on the basis of claim profile, to enhance premium. It should not be read to enable an insurer to increase the premium rates generally - behind the TAC which would mean a breach of tariff conditions.
If insurers are adding to the covers normally available and covered by tariff (conditions and terms ), then they have to file a profile with TAC and go by the ‘File and Use’ regime.
SECRETARYSub : Secretary, Tariff Advisory Committee
This is to inform all concerned that vide IRDA's Office Order dated 22.7.2001, Shri K.K.Srinivasan, General Manager has been posted as Secretary, TAC consequent upon transfer of Shri R.Beri. Shri Srinivasan has taken charge with effect from 10th August, 2001.
Assistant General Manager
Sub : Application of a surcharge on premium to cover risks arising on account of terrorism
The Tariff Advisory Committee to cover the risks referred to above has now decided to impose a 10% surcharge on the net premium on all the Fire Policies and Engineering Policies issued by all Indian insurers.
This will be applicable to all policies - all fresh business and renewals falling due on or after 1st October, 2001 and in case of current policies this surcharge will be on a pro-rata basis for the unexpired period of the policies.
Insurers are requested to inform their operating offices suitably in this regard immediately.
Receipt of this circular may be acknowledged by the recipients to the Secretary, Tariff Advisory Committee.
Secretary
Sub : Application of a surcharge on premium to cover risks arising on account of terrorism
Further to our Circular no. TAC/2/2001 dated 28-9-2001, TAC has decided to issue the following clarifications :
Insurers are requested to inform their operating offices suitably in this regard immediately.
Secretary
Sub : Appointment of Shri R.C. Sharma, IRDA as Member, Tariff Advisory Committee
This is to inform all concerned that Shri R.C. Sharma, Member (Non-Life), IRDA has been appointed as a member of the Tariff Advisory Committee in the place of Shri H. Ansari who retired from the services of the Authority.
Shri R.C. Sharma's appointment on the TAC's Board is effective from 10th October, 2001.
Secretary
Sub : Renaming of Bombay, Calcutta and Madras Offices of Tariff Advisory Committee
This is to inform all concerned that as a sequel to the changes in the names of the cities of Bombay, Calcutta and Madras, the Bombay, Calcutta and Madras Regional Offices of Tariff Advisory Committee are hereby renamed as Mumbai, Kolkata and Chennai Regional Offices of the Tariff Advisory Committee respectively.
Secretary
_____________________________________________________________
Sub : Rationalisation and Renaming of the various Committees and Sub-Committees of Tariff Advisory Committee.
This is to inform all concerned that the various Sub-Committees/Groups of the Tariff Advisory committee are hereby renamed as given below :
| Sr. No. | OLD NAME | NEW NAME |
| 1 | Engineering Sub-Committee | Engineering Committee |
| 2 | Technical Group (Marine) | Marine Committee |
| 3 | Technical Group (Petrochemical) | Petrochemical Committee |
The Technical Sub-Committee of the Tariff Advisory Committee has been dissolved and in its place, the following two Committees will function :
| Sr. No. | COMMITTEE DISSOLVED | NEW COMMITTEE |
| 4 | Technical Sub-Committee | Fire Committee |
| 5 | -do- | Misc./Motor Committee |
The constitution of these Committees will be finalised shortly.
Secretary
TAC/23/2001 Date : 21-12- 2001
Sub: Application of a surcharge on Premium to cover risks arising on account of Terrorism
Further to our circular No. TAC/3/2001 dated 1-10-2001, TAC has decided as follows :
A) The surcharge of 10% referred to in our circular No. TAC/2/2001 and TAC/3/2001 will be treated as premium.
B) No option will be given to the insureds to opt out of terrorism risks during the current policy year.
Insurers are requested to inform their Regional Offices, Divisional Offices and Branch Offices suitably.
Secretary
P.S. : Consequent upon the said decision, the concerned Regional Offices/Departments may get the necessary changes effected.
Sub : Constitution of Technical Committees of TAC
As per the decision taken at the TAC meeting held on 3-11-2001, various Technical Committees of TAC are constituted as under :
Fire Committee :
Name of the member Name of the Company Status
Smt. Gowri Swaminathan, Reliance General Insurance Co. Ltd.,- Main
Shri H. Srinivasan, Reliance General Insurance Co. Ltd., -Alternate
Shri M. Ramprasad, National Ins. Co. Ltd -Main
Shri C. D. Rama Krishnan, National Ins. Co. Ltd -Alternate
Shri A. Jaganathan, Royal Sundaram Alliance Ins. Co. Ltd. -Main
Shri S. Selvaraj, Royal Sundaram Alliance Ins. Co. Ltd.- Alternate
Shri M. D. Jhala, New India Assurance Co. Ltd.- Main
Shri Abhay Gujar, Bajaj Allianz Ins. Co. Ltd- Main
Smt. V. Sushila, General Insurance Corpn.- Main
Smt. S. Saraswati, General Insurance Corpn -Alternate
Miscellaneous/Motor Committee :
Shri Harbinder Singh, ICICI-Lombard Gen. Ins. Co. Ltd.- Main
Shri Sudhir Salian, ICICI-Lombard Gen. Ins. Co. Ltd. -Alternate
Ms. S. Padmini, National Ins. Co. Ltd.- Main
Shri J. K. Singh, National Ins. Co. Ltd. -Alternate
Shri Krishnamoorthy Rao, Bajaj Allianz Ins. Co. Ltd. -Main
Shri Sen Sarma, IFFCO- Tokio Gen. Ins. Co. Ltd.- Main
Shri Abhay Kumar, IFFCO- Tokio Gen. Ins. Co. Ltd.- Alternate
Shri Gaurav Garg, TATA-AIG Gen. Ins. Co. Ltd. -Main
Shri D.T.V. Shastri, General Insurance Corpn. -Main
Shri M.N. Pai ,General Insurance Corpn.- Alternate
Engineering Committee :
Shri E. S. Kannan ,United India Ins. Co. Ltd.- Main
Shri S. K. Bansal, United India Ins. Co. Ltd. - Alternate
Shri Yogesh Lohiya, Oriental Ins. Co. Ltd.- Main
Shri A. K. Roy, Oriental Ins. Co. Ltd. - Alternate
Shri S. Selvaraj, Royal Sundaram Alliance Ins. Co. Ltd.- Main
Shri A. Jaganathan, Royal Sundaram Alliance Ins. Co. Ltd. -Alternate
Shri R. Raman, TATA-AIG General Ins. Co. Ltd.- Main
Shri M. Padmanabhan New India Assurance Co. Ltd. Main
Shri A. Sant, General Insurance Corpn.- Main
Shri K. Ragunath, General Insurance Corpn.- Alternate
Petrochemical Committee
Shri M. D. Jhala, New India Assurance Co. Ltd.- Main
Shri R. Senthil Kumaran, United India Ins. Co. Ltd.- Main
Shri S. Thiagarajan, United India Ins. Co. Ltd.- Alternate
Shri Yogesh Lohiya, Oriental Ins. Co. Ltd.- Main
Shri A. K. Roy, Oriental Ins. Co. Ltd.- Alternate
Shri R. Raman, TATA-AIG Gen. Ins. Co. Ltd. - Main
Shri H. N. Pathak, Reliance General Insurance Co. Ltd.- Main
Shri R. Roychowdhury, Reliance General Insurance Co. Ltd. - Alternate
Shri G. Muntaqua, General Insurance Corpn.- Main
Shri A. Sant, General Insurance Corpn.- Alternate
Marine Committee Will be constituted as soon as recommendation are received from the General Insurance Council.
Note : An alternate member will attend the meetings of the Technical Committees only when a main member is unable to be present
Insurers are requested to advise their officers who are nominated to the various Technical Committees as mentioned above, suitably.
Secretary
Re: Discount in premium in lieu of Agency Commission
In keeping with IRDA's notification dated March 22, 2003, the Tariff Advisory Committee introduces the following changes in tariff classes of business for risks commencing from 1.4.2003.
I. Fire, Petro-chemical, Engineering, CL(Fire) MLOP and IAR Insurances:
1) 5% discount in lieu of commission (or remuneration) to intermediaries is to be applied on the final premium (before application of service tax ) in respect of business of government and of public sector undertakings covered by Section 617 of Companies Act, 1956.
2) For the following categories of insureds a discount of 5% in lieu of commission ( or remuneration) to intermediaries can be given in respect of business directly placed with the insurers:
a) companies with a paid up capital of Rs.1 crore and above
b) cooperative societies with a paid up capital of Rs.5 lakhs and above
c) public charitable trusts which are exempt from income tax and
d) business under the direct control of the government where the policy of insurance shows the interest of the governor of a State or the President of India
3. In respect of
a) categories of insureds covered under Item No.2 above, where the insurance is not placed directly with an insurer and placed through an intermediary and b) other categories of insureds not covered under (1) and (2) above
no discount in lieu of commission (or remuneration) to intermediaries shall be allowed and in these cases commission (or remuneration) to intermediaries shall be as per Rules and Regulations laid down by IRDA from time to time.
II. Marine Hull Insurance
1. No discount in lieu of commission (or remuneration) payable to intermediaries shall be allowed.
2. Where there is a provision for allowing a total deduction of 15% by way of discount to owners and commission to insurance agents, the discount allowable to owners shall be restricted to 10% and no discount in lieu of commission (or remuneration) payable to intermediaries shall be allowed.
III a. Package policy for Exporters covered under the Duty Exemption Scheme.
b. Guidelines for issuance of Policies to the Coffee Estates effective 1st July, 1992.
c. Guidelines for issuance of policies to the Cardamom Estates effective 1st July, 1992.
d. Guidelines for issuance of policies to the Rubber Estates effective 1st July, 1992.
e. Tea Tariff.
In the above classes of business, no discount in lieu of commission (or remuneration) payable to intermediaries shall be allowed.
IV. India Motor Tariff /Workmen's Compensation Tariff.
No discount in lieu of commission (or remuneration) payable to intermediaries shall be allowed.
For the purposes of this circular, an intermediary is an insurance agent or an insurance broker licensed by the IRDA.
Insurers are requested to make a note of the above changes and advise their operating offices accordingly.
Secretary
Ref.No. TAC/2/2003 Date: June 11, 2003
Re: Discount in Premium in lieu of Agency Commission
In keeping with IRDA's circular no.IRDA/CIR/019/2003 dated May 30, 2003, the Tariff Advisory Committee has modified its circular no.TAC/1/03 dated 28-4-2003 as under in respect of all tariff classes of business:
Insurance of Government and Public Sector Undertakings covered by Section 617 of Companies Act, 1956:
(a) As stipulated by IRDA, no brokerage or commission to intermediaries shall be payable. However, insurance companies can if they so choose grant 5% discount on the final premium (before application of service tax).
(b) Apart from the provisions stated in (a) above, in respect of Marine Hull Insurance, where there is a provision for allowing a total deduction of 15% to owners including commission to insurance agents, the discount allowable to owners shall be restricted to 10%.
No discount in lieu of commission (or remuneration) to intermediaries shall be allowed. In respect of Marine Hull Insurance, where there is a provision for allowing a total deduction of 15% to owners including commission to insurance agents, the discount allowable to owners shall be restricted to 10%.
For the purposes of this circular, an intermediary is an insurance agent or an insurance broker licensed by the IRDA.
The above changes will come into effect from June 15, 2003.
Insurers are requested to make a note of the above changes and advise their operating offices accordingly.
Secretary
Ref.No.TAC/03/2003 31st December,2003
Sub: Submission of Annual Report to TAC
All non-life insurers are hereby informed that 2 printed copies of their published Annual Reports
have to be submitted to TAC soon after their publication.
Annual Reports for the financial year 2002-2003 may be sent to us at the earliest.
Secretary