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Home / IRDA Update 

IRDA Reinsurance Regulations,2000

NOTIFICATION

Revised Draft to be published in the Gazette of India Extraordinary Part III Section 4-INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ( Reinsurance) Regulations, 2000

In exercise of the powers conferred by Sections 114A of the Insurance Act, 1938(4 of 1938), the Authority in consultation with the Insurance Advisory Committee hereby makes the following regulations, namely

CHAPTER I - PRELIMINARY

Short title and commencement

• These regulations may be called the Insurance Regulatory and Development Authority (Reinsurance) Regulations, 2000 and are issued in pursuance of Section 114 of the Act.
  
  
• They shall come into force from the date of its publication in the Official Gazette.
  
  
• These regulations apply to all general insurers transacting direct insurance business.

• 'The Act' means the Insurance Act, 1938 (4 of 1938).
  
  
• 'The Authority' means the Insurance Regulatory and Development Authority constituted under sub-section(1) of Section 3 of the Insurance Regulatory and Development Authority Act, 1999.
  
  
• 'Cession' means the unit of insurance passed to a reinsurer by the insurer which has issued a policy to the original insured. A cession accordingly may be the whole or a portion of a single risk, defined policies or defined sections of business, as agreed in the reinsurance contract.
  
  
• 'Facultative' means the reinsurance of part of or all of a single policy in which cession is negotiated separately. The reinsurer and the insurer has the option of accepting or declining each individual submission.
  
  
• 'Pool' means any underwriting operation of insurance or reinsurance in which the participants assume a predetermined and fixed interest in all business written subject to agreed scope of business and limits.
  
  
• 'Retrocession' means the transaction whereby a reinsurer cedes to another Insurer all or part of the reinsurance it has previously assumed.
  
  
• 'Retention' means the amount which an insurer assumes for its own account. In pro rata contracts, the retention may be a percentage of the policy limit. In excess of loss contracts, the retention is an amount of loss.
  
  
• 'Treaty' means a reinsurance agreement between an insurer and a reinsurer, usually for one year or longer, which specifies the limits of liabilities and terms of reinsurance in respect of a portfolio of business.

Words and expressions used and not defined in these regulations but defined in the Insurance Act, 1938 or the General Insurance Business Nationalisation Act, 1972 or Insurance Regulatory and Development Authority Act, 1999 rules made under this Act shall have the meanings respectively assigned to them in those Acts or the rules as the case may be.

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