General Insurance Corporation of India (GIC) and many general insurers have entered into Indian Market Terrorism Risk Insurance Pool Agreement (IMTRIP Agreement). The IMTRIP agreement is applicable to all insurance of terrorism risk insured by the Insurers. It has come to the notice of the Authority that the Balance Receivable from the Terrorism Pool has been considered for the purpose of computation of solvency margin, whereas clause 17 of the agreement do not give/grant a right to the Insurers to call back/withdraw the money from the pool. In the absence of any explicit provision in the IMTRIP agreement regarding the settlement of balances of member, there are different views on admissibility of balances towards terrorism pool in computation of available solvency margin.

In view of the above, the competent Authority has decided to set up a committee with the following members:

Mr. Nirmal Jain, AM, F&A-NL will be the convenor of the meeting.

The Terms of Reference of the Committee are as below:

1.    Review the existing IMTRIP Agreement entered into between Pool Manager and General Insurers from the point of view of settlement process of the pool;

2.    Review the IRDA (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 from the point of view of admissibility or otherwise, of Balance Receivable from Terrorism Pool;

3.    Recommend whether the balance receivable from Terrorism Pool should be considered as admissible asset for computation of solvency margin or not;

4.    Suggest suitable changes in IMTRIP Agreement, if any;

5.    Any other matter.

The Committee shall meet as often as required and submit its recommendations within three months of publishing of this order.

(Pravin Kutumbe)

Member (F&I)