Different Formats for Collection of Insurance Rural Data Notified by IRDAI
The Insurance Regulatory and Development Authority of India has recently notified different formats for collection of Insurance Rural Data, by way of the notification no IRDA/ NL/ CIR/ MISC/ 033/ 2021, issued on 02.03.2021.
In this learning blog, we will cover the concept of IRDAI, Rural Insurance, together with the different formats for collection of insurance rural data notified.
Concept of Insurance Regulatory and Development Authority
The term Insurance Regulatory and Development Authority of India or IRDAI denotes an autonomous statutory body that regulates both the Life Insurance and General Insurance Companies and formulates regulations for the development and growth of the Insurance Sector.
The main work of IRDAI is to ensure fair prices and systematic growth for all the customers and to infuse transparency and financial soundness in the insurance market. Also, it shall be noted that only IRDAI has the authority to grant an Insurance Broker License, Insurance Company License, and Insurance Web Aggregator License.
Concept of Rural Insurance
The term Rural Insurance means the type of insurance that is specifically formulated for the benefit of rural public or the people engaged in cattle, farming, poultry, etc. Further, through rural insurance, individuals are capable of claiming benefits on the loss of crop or on the death of animals.
The criteria to apply for Rural Insurance can be summarised as:
- Population of the must not be above 5000;
- Density population should not exceed 400 per sq. km;
- 75% of the male population must be engaged in Farming and related activities;
Reasons for Prescribing Different Formats for Collection of Insurance Rural Data
The main reasons for prescribing different formats can be summarised as:
- To monitor and regulate the working of the rural insurance business;
- To support the development and growth of the policy;
- To back the regulations concerning the promotion of rural insurance business;
Who are all required to have Different Formats for Collection of Data?
All the Non-Life Insurance Companies, except the Export Credit Guarantee Corporation (ECGC), need to have different formats for the collection of insurance data.
Additional Prescribed Annexures
The annexures to be attached to the formats prescribed are as follows:
- The Rural Insurance Data in the prescribed format for the previous 3 financial years, starting from the financial year 2017 – 2018, on or before 31.03.2021;
- The Rural Insurance Data in the prescribed format for each financial year, starting from the financial year 2020 – 2021 to Industrial Investment Bank of India (IIBI), on or before 3 months from the closing of the financial year;
What are the Different Formats for Collection of Insurance Rural Data?
The different formats for collection of Insurance Rural Data can be summarised as:
The Rural A Format specifically deals with Crop Insurance. The term Crop Insurance means a type of Protection Policy that aims to cover agricultural producers against the risk of unexpected loss of projected crop yields from the sales at the market. There are two types of crop insurance, one is crop revenue, and the other one is crop yield.
The Rural B Format specifically deals with Livestock, Poultry, Aquaculture, Insects, and other Animal Insurance.
The Rural C Format specifically deals with the agricultural/ rural property and farmer’s/ rural package insurance.
The Rural D Format specifically deals with rural health and personal accident insurance.
In a nutshell, to regulate the working, support the growth of policy, and to back the regulations pertaining to the promotion of rural insurance business, IRDAI has notified different formats for collection of Insurance Rural Data.