IRDAI Reg Section 45 : Applicability
Act
Summary
Section 45 of the IRDAI Regulations, 2024, outlines the applicability of the regulations concerning outsourcing activities by insurers. These regulations apply to all insurers registered with the Authority, except those involved in reinsurance. The section also specifies that outsourcing arrangements can be made with service providers both within and outside India, subject to approval by the Competent Authority.
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Explanation using Example
Example 1: Outsourcing Customer Service Operations
Introduction: ABC Insurance, a company registered with the Insurance Regulatory and Development Authority of India (IRDAI), decides to outsource its customer service operations to a call center located in the Philippines.
Application: According to Section 45, Sub-section (2) of the IRDAI Regulations, 2024, outsourcing arrangements by insurers are applicable to service providers located outside India, provided they are allowed by the Competent Authority. ABC Insurance must ensure that the outsourcing arrangement complies with these regulations.
Outcome: ABC Insurance must obtain approval from the Competent Authority before finalizing the outsourcing contract. Failure to comply with this requirement could result in penalties or sanctions as per the associated penalty clauses of the IRDAI Regulations. Additionally, ABC Insurance must ensure that the service provider adheres to data protection and confidentiality standards as required by Indian law.
Conclusion: By complying with the IRDAI Regulations, ABC Insurance can legally outsource its operations, ensuring that all regulatory requirements are met and avoiding potential legal issues.
Example 2: Domestic Outsourcing of IT Services
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