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Title: To all Principal Officers of Reinsurance/Composite Brokers
Reference No.: IRDA/BRK/MISC/CIR/050/03/2017
Date: 08/03/2017
Approach on the un-reconciled, unsettled outstanding reinsurance balances
Reference is drawn to IRDA circular no. IRDA/BRK/MISC/CIR/208/09/2014 dated 3rd September, 2014 outlining the approach on the un-reconciled, unsettled outstanding reinsurance balances as on 31st March, 2014 and seeking information in the prescribed formats, individual insurer/ reinsurer-wise, pertaining to the period from 1st April, 2013 to 31st March, 2014. Separate forms submitted for different insurers/ reinsurers, quoting the name of the insurer/ reinsurer were collated and analysed by the Authority.
Going forward, the Authority in its recently concluded meeting decided that all reinsurance transactions involving the reinsurance/ composite broker after 1.4.2014 shall be reconciled between the reinsurers/ insurers and reinsurance/ composite brokers in the attached formats and be kept with them in compliance with the requirements of Regulation 30 - Annexure–VI-E of IRDA (Insurance Brokers) Regulations, 2013.
If the reinsurance/ composite broker has un-reconciled outstanding unsettled clients money lying with them, they shall transfer the same in a separate bank account under intimation to the Authority with full details of the bank account. The broker shall give an undertaking that they would work with their clients (insurers/ reinsurers/ other reinsurance/ composite brokers) and ensure that the un-reconciled outstanding unsettled clients~ money lying with them shall be reconciled and settled by 31st May, 2017.
If there is outstanding unsettled client’s money, the reinsurance/ composite broker shall settle the same within a period as specified in the agreement and in absence of any time limit within a period not exceeding 30 days. The reinsurance/ composite broker shall file compliance of the above requirement within further 30 days of the expiry of the period stated above.
It is reiterated that all reinsurance/ composite brokers shall confirm that there are no un-reconciled outstanding unsettled clients money lying with them on a half-yearly basis along-with Annexure–VI-E of IRDA (Insurance Brokers) Regulations, 2013.
P.J. Joseph
Member (Non-Life)
