IRDAI issues guidelines on operational issues pertaining to the Regulatory Sandbox

Aug 28, 2019 | by Avantis RegTech Legal Research Team


The Insurance Regulatory and Development Authority of India (IRDAI) on August 22, 2019, have issued guidelines on operational issues pertaining to implementation of "innovation in insurance" programme through Regulatory Sandbox.

The followings are the procedure to be followed for the implementation of "innovation in insurance" programme:

1. An applicant desiring to promote or implement any innovation in insurance in India shall make an application to the Authority in Form-RG-1 (Page 4) in any one or more of the categories given in Regulation 4 of the IRDAI (Regulatory Sandbox) Regulations, 2019.

2. Every applicant shall demonstrate to the Authority that the proposal for innovation will help increase insurance penetration or provide enhanced services to the policyholders.

3. The applicant shall nominate an experienced and responsible person to be the single point of contact for interacting with the Authority on the application submitted.

4. The Authority may consider granting limited regulatory relaxation to the proposal that promotes innovation in insurance in India.

5. The customers participating in the proposal shall be clearly informed that they are participating in a proposal whose outcomes are not certain.

6. The proposal shall come to an end if the number of customers is 10,000 or premium collected is Rs. 50 lakh or any other parameters decided by the Authority within the stipulated time.

7. An application for innovation in insurance involving underwriting or product category or both shall be filed by any applicant in association with any insurers.

8. Expenses incurred on the proposal shall be maintained separately and shown as a line item in the Annual Report. In case of insurers such expenses shall be charged to the shareholder's accounts or its equivalent.

9. The applicant may continue offering the service or the product on a regular basis in the market on lines of any other services and products under the applicable regulatory framework with necessary approval of the Authority.

10. Confidentiality of personal information and data security.

11. The applicant shall put in place a mechanism to address policyholders' grievances.

12. The applicant shall submit to the Authority the reports as specified by it while approving the proposal.

[Ref. No: IRDAI/ INT/GDL/ RSB/ 139/08/2019]


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