Irda outlines MIS blueprint for uniform reporting system

Harjeet Ahluwalia

New Delhi, June 11: The Insurance Regulatory and Development Authority (Irda) is in the midst of drawing up a management information systems (MIS) blueprint to be followed by all insurance companies for uniform reporting systems.

It is in talks with a number of software solutions providers to select a suitable format for insurance information and storage, Irda officials told The Financial Express.

One of the prospective suppliers, Larsen & Toubro, will also be giving a presentation to the regulator this week. Meanwhile, the life insurance advisory council executive committee at its second meeting in Mumbai on Monday took up the issue of MIS compliance by insurers for the year 2000-01, along with the draft regulations on protection of policy-holders’ interests, it is reliably learnt.

The second draft on policyholders’ interests is a more detailed document that enjoins upon a defaulting insurer a 10 per cent penalty for delayed processing of a claim. It includes several other provisions to make the insurance companies more accountable to the consumer.

For instance, the new draft provides that if a life insurance policy is issued under a plan that is participating in profits, the basis of participation such as cash bonus, deferred bonus, simple or compound reversionary bonus, etc, must be clearly stated.

As for a non-life policy, the draft wants it to also spell out the obligations of the insured, when an event occurs that gives rise to a claim and the rights of the insurer in those circumstances. In addition, each insurance policy must indicate the existence of an alternative mechanism for resolution of disputes, that is, the ombudsman, with his address.

The committee also reviewed new business performance in the rural/social sectors during the last financial year. The code of conduct in matters like agency recruitment, advertisement norms, etc, were on the agenda, too.

The advisory council, comprising representatives from the regulator, the public sector and private sector companies, acts as a nodal point for thrashing out issues of common concern to the industry.

Also scheduled for discussion was the issuance and renewal of agency licenses and the proposed procedure for payment of license fee to the regulator.