IRDA reviews delegation of policies by board of insurers

India Infoline News Service | Mumbai |

The Boards may delegate laying down a ‘policy for allotment of lapsed orphan policies’ to Risk Management Committee

The Insurance Regulatory and Development Authority (IRDA) said that board of directors may consider delegating to the Risk Management Committee, the mandate of approving the outsourcing policy and reviewing the performance of all the third party service providers.
The minutes of the meetings of Risk Management Committee that reviewed the ‘outsourcing policy and performance of all the third party service providers’ shall be placed before the Board of Directors in the ensuing meeting, IRDA said in a circular on Thursday, 10 April 2014.
It is further clarified that though the Risk Management Committee is also now permitted to review the ‘outsourcing policy and the performance of Third Party Service Providers’, the onus of compliance with all relevant laws, regulations/ guidelines/ notifications issued from time to time, with regard to outsourcing, rests with the Board of Directors of Insurers, it further said.
The Boards may delegate laying down a ‘policy for allotment of lapsed orphan policies’ to Risk Management Committee in compliance with the relevant regulatory framework.
 

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