Solvency Margin for Crop Insurance business- (Insurance Regulatory and Development Authority) (26 Aug 2020)

MANU/IRDA/0048/2020

Insurance

1. This circular is issued in accordance with the power vested under section 14(2)(e) of the IRDA Act, 1999 read with section 34(1) of the Insurance Act, 1938.

2. Reference is drawn to the Circular No. IRDA/ACT/CIR/SLM/066/03/2017 dated 28th March, 2017.

3. The provision of Para-6.1.1 is revised as under:

3.1 Premium receivables related to State/Central Government sponsored schemes for the Q1 and Q2 of the FY 2020-21 to the extent they are not realized within a period of one year should be placed with value zero.

3.2 Premium receivables related to State/Central Government sponsored schemes for the Q3 and Q4 of the FY 2020-21 to the extent they are not realized within a period of 270 days should be placed with value zero.

4. The provisions of Para-6.2, Para-6.3 and Para-6.3.1 shall remain effective for one more financial year, that is, for the period from 1st April, 2020 up to 31st March, 2021 and the situation will be reviewed accordingly.

5. This Circular comes into force with effect from 1st April, 2020.

6. This is issued with approval of the Competent Authority.

Tags : SOLVENCY MARGIN CROP INSURANCE BUSINESS