Lok Sabha Question No. 2735 (UNSTARRED), answered on 2017-03-17
Subject: Performance of Private Insurance Companies
Ministry: FINANCE
Asked by: M. I. SHANAVAS, RAYAPATI SAMBASIVA RAO

## Government of India Ministry of Finance Department of Financial Services Unstarred Question No. 2735

Friday, March 17, 2017/Phalguna 26, 1938 (Saka)

## Performance of Private Insurance Companies

## 2735. SHRI M: I. SHANAVAS: SHRI RAYAPATI SAMBASIVA RAO:

## Will the Minister of FINANCE

be pleased to state:

- assess the   performance of the private insurance companies in the country;
- b) if s, the details and the outcome thereof; company-wise;
- ifnot; the reasons therefor and the details of the regulating mechanism to keep tab on the performance of the private insurance companies; and
- the extraordinary measures taken during the last three to ensure that private  insurance companies follow the norms set by the regulatory body? years

## Answer

Minister of State in the Ministry of Finance (Shri Santosh Kumar Gangwar)

- (a) to (c): As per Insurance regulatory and Development Authority of India (IRDAD), the performance of private insurance companies are assessed through the following:
- i.) Analysis of the financial statements and corporate governance report of the insurance companies on annual basis.
- ii.) Analysis of the statement of expenses of management and payment of commission on an annual basis.
- Monitoring/review of the various returns filed by the insurance companies under the Public Disclosures. iv.)
- iii.) Analysis of the unclaimed amount of policyholders on half-yearly basis.
- Compliance of the returns regarding the statutory auditors on an annual basis.
- vii )  Offsite monitoring is done on an ongoing basis, which includes review of various returns reports  filed Monthly, Quarterly, Half-yearly and Annually by all the insurance companies as per the provisions of the statute and the regulations. This includes among others, New Business Performance, Claims performance and Grievance Redressal.
- vi:) Analysis of the solvency returns filed by the non-life insurance companies on & quarterly basis.
- viii:) The Authority carries out periodical onsite inspection of the insurers to examine the compliance of the insurers to various statutory and regulatory provisions. In case of any deviations violations are noticed, appropriate   regulatory actions are taken including   directing the  insurers to initiate corrective   actions, wherever necessary.
- The Authority also takes into cognizance any violations observed the course of reviewing the complaints received from the customers and initiates suitable corrective measures wherever required. during

Further; IRDAI publishes a comprehensive Annual Report containing the performance of both public and private sector insurance companies, various regulatory initiatives taken and the major trends of the Insurance Sector. This report is placed on the table of the Parliament every year. This report also contains the Regulatory actions taken against insurance companies.

(d): The  Insurance initiate   prosecution with   fine   and imprisonment upto 10 years also to initiate   adjudication proceedings and penalties upto Rs.25 crore. levy