Title: To all CEOs of General Insurers, Health Insurers & CEO of CSC-SPV
Reference No.: IRDA/INT/CIR/CSC/159/08/2016
Clarification - Addition of Products for sale through CSC-SPV
Reference is drawn to IRDAI circular Ref: IRDA/INT/CIR/CSC/138/07/2016 dated 13th July, 2016 adding products for sale through CSC-SPV. On the circular the Authority has received representation from some insurers seeking clarification on CSC-SPV marketing Government sponsored Insurance Schemes without any sum insured limit.
In this regard, it is clarified that:
1. The meaning of the phrase “without any limit on Sum Insured” is that in all Government sponsored Insurance Schemes, whatever actual sum insured and premium is stipulated in respective scheme, the same will continue with no change. CSC-SPV can sell and market Government Sponsored Insurance Schemes even if the sum insured in the respective scheme is more than Rs 2 lakh.
2. As regards crop insurance, by allowing CSC-SPV to sell the product without sum insured limit, all we mean is that the CSC-SPV can sell Government Sponsored Crop Insurance Schemes offered by an insurer which covers the crop of the policyholder, over the area of the insured field. However, the sum insured/premium/ premium rate per crop/unit area/tree, as the case maybe, remains what is notified under the respective Government sponsored Insurance Schemes without any change. In effect there will be no cap on the sum insured for Government Sponsored crop Insurance Schemes, as it exists for other insurance products sold through the CSC-SPV.
3. “Pradhan Mantri Jeevan Suraksha Bima Yojana” may be read as “Pradhan Mantri Suraksha Bima Yojana (PMSBY)”. While PMSBY is linked to the bank account and currently only banks sell the product by debiting directly the account of the insured, there may be other Government Sponsored Insurance Schemes which are allowed to be marketed through agents or insurance intermediaries. In such cases the CSC-SPV can solicit and market the schemes for which they will be entitled to commission or remuneration as per norms.
(P. J. Joseph)