INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY OF INDIA (EXPENSES OF MANAGEMENT OF INSURERS TRANSACTING GENERAL OR
HEALTH INSURANCE BUSINESS) REGULATIONS, 2022
Authority is in receipt of requests to review the Regulations from the
stakeholders. Therefore, the current regulations have accordingly been
exposure draft of the EoM Regulations 2022 was placed on the website of the
Authority for the comments of all stakeholders on 01.08.2022.
deliberations /consultations were also held with the stakeholders in various
comments/ suggestions received from the stakeholders have been examined and
incorporated suitably in the proposed regulations.
5. We are in receipt of the
comments / suggestions from the stakeholders on the proposed regulations even
6. In order to re-engage with the
stakeholders and to consolidate their comments on the revised proposed
Regulations, the exposure draft of revised IRDAI (Expenses of Management of
Insurers Transacting General or Health Insurance Business) Regulations, 2022,
is attached as Annexure – A for their comments/suggestions.
the salient features of the draft Regulations are as under: -
Regulations supersede the IRDAI (Expenses of Management of Insurers transacting
General or Health Insurance business) Regulations, 2016;
(ii) Applicability of the
Regulations w.e.f. 01.04.2023;
(iii) Insertion of single
limit of Expenses of Management as against existing segmental /sub-segmental
(iv) Revision of limits on
expenses to: -
a. 30 percent in case General
b. 35 percent in case of Standalone
of gross premium written in India in that financial year.
of additional allowances towards Rural Sector & Govt. Welfare oriented
(vi) Insertion of additional
allowances for expenses towards ‘Insurtech’ and ‘Insurance Awareness’;
(vii) Manner of transfer of benefits, arising
from reduction of expenses to the policyholders by way of reduction in the
(viii) Submission of Board approved business
plan on the projected capital requirements, projected solvency requirements and
projected expenses of management in terms of allowable limits;
(ix) Authority may grant
forbearance to new insurers in case of excess expenditure up to first 5 years
of ‘duration of business’;
path of three years up to FY 2025-26 for insurers which are not compliant with
the expense limits laid down in the Regulations;
(xi) No variable pay to Managing
Director (MD) / Chief Executive Officer (CEO) / Whole-Time Directors (WTD) and
Key Management Persons (KMPs) for the said financial year in which the actual
expenses exceeds the projected expenses by more than 10 percent.
the stakeholders are requested to forward their comments / suggestions, if any,
on the proposed regulations (Annexure-A) in the attached format (Annexure-
B) on or before 5:00 PM on 14th December, 2022 to firstname.lastname@example.org.