TRANSITORY INVESTMENT PROVISIONS INSURANCE LAWS (AMENDMENT) ORDINANCE, 2014 – CLARIFICATION ON APPROVED INVESTMENTS

CIRCULAR NO. IRDA/F&I/CIR/INV/034/02/2015, DATED 16-2-2015

The Insurance Laws (Amendment) Ordinance, 2014 (herein after called “Ordinance”) as promulgated by the President of India, was issued by the Ministry of Law and Justice (Legislative Department) on the 26th December 2014 to amend the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999. The Ordinance is effective from 26th December, 2014.

It is clarified that till the Amendments are made to IRDA (Investment) Regulations, 2000, to effect the Ordinance all investments made and kept invested under erstwhile section 27A and section 27B of Insurance Act, 1938 are part of Approved Investments.

The insurers shall continue to apply Fixed Deposit and Current Deposit limit of 3% under erstwhile section 27A (9) and 10% under erstwhile sec. 27B(10) for any one Banking Company. The insurers shall follow norms prescribed for Investments in Fixed Deposits and Certificate of Deposits as specified under ‘Key changes in IRDA (Investment) Regulations, 2000’ dated April 1, 2013.