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Regulatory Amendments advised by Insurance Advisory Committee for IRDA Act with respect to Appointed Actuary

IRDA (APPOINTED ACTUARY) (FIRST AMENDMENT) REGULATIONS, 2013 – AMENDMENT IN REGULATION 3 AND INSERTION OF REGULATION 11

NOTIFICATION F.NO.IRDA/REG/4/62/2013, DATED 7-2-2013

In exercise of the powers conferred by section 114A of the Insurance Act, 1938 (4 of 1938) read with sections 14 and 26 of the Insurance Regulatory and Development Authority Act, 1999 (4 of 1999), the Authority in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely:-

1. Short title and commencement

 a.  These regulations may be called the Insurance Regulatory and Development Authority (Appointed Actuary) (First Amendment) Regulations, 2012.

 b.  They shall come into force on the date of their publication in the Official Gazette.

2. Procedure for Appointment of an Appointed Actuary

 a.  Regulation 3(2)(ii) is substituted by the following:

“A Fellow Member or an Affiliate Member in accordance with the Actuaries Act, 2006 with specialisation (as evidence by qualification and/or working experience) in:

   i.  Life insurance for Life insurance company/Life reinsurance company;

  ii.  General insurance for General insurance company/General reinsurance company;

 iii.  Health insurance for Stand-alone Health insurance Company/Health reinsurance company;

Provided, however, the syllabus and reading material constituting element of study for such specialization and the requirements for issuing the certificate of practise for Appointed Actuaries shall be to the satisfaction of the Authority.

Provided further that the existing Appointed Actuaries who does not satisfy the conditions in Regulation 2(a)(i) or 2(a)(ii) or 2(a)(iii), as applicable, shall have to qualify the respective specialization subject(s) within a period of five years to continue to hold the position of Appointed Actuary.”

 b.  Regulation 3(2)(iv) is substituted by the following:

“a person shall be a full time employee of the General insurer in case of General Insurance business/Health Insurance business.

Provided further that the existing Appointed Actuaries who does not satisfy the conditions in Regulation 2(b), shall have to be appointed as employee within a period of two years to continue to hold the position of Appointed Actuary.”

 c.  Regulation 3(2)(viii) is substituted by the following:

  i.  “A person who shall not be over the age of seventy years as on 1st December, 2013; and not over age sixty five years as on 1st December of every calendar year with effect from 1-1-2014.

  ii.  A person shall cease to be Appointed Actuary, once he/she attains the age of sixty five years, as the case may be, on or after 1st December of a calendar year.

 iii.  In case, the person attains the age of sixty five years before 1st December of a Calendar Year, he/she shall be allowed to continue as Appointed Actuary till 30th November of that calendar year subject to compliance with the other provisions of the regulations.

  d.  The following Regulations are inserted after Regulation 3(2)(ix) as under:

3(2)(ix) A person shall have:

   i.  A minimum of 10 years relevant experience and

 ii.  At least 2 years of post qualified (Fellowship in the specialised subject) experience out of those 10 years of experience stated in (i) above and

 iii.  Should have handled suitably responsible positions immediately prior to the application for Appointed Actuary and

iv.  At least 2 years of recent relevant experience out of those 10 years of experience stated in (i) above in the respective field for which the Appointed Actuary position is being sought for.

3. Conflict of Interest

 a.  A new Regulation 11 is inserted after Regulation 10 as under:

11. The Appointed Actuary’s functions shall be in accordance with IRDA (Appointed Actuary) Regulations, 2000 and he/she shall not function in any other capacity which could result in conflict of interest in performing his/her role as an Appointed Actuary in accordance with the aforementioned Regulations.

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