Insurers in India are progressively utilizing outsourcing, as a method for both diminishing cost and getting to mastery, not accessible inside and accomplishing vital points. "Outsourcing" might be characterized as "Safety net provider's utilization of an outsider (either a subsidiary element inside a corporate gathering or an element that is outer to the corporate gathering) to perform exercises on a proceeding with premise that would regularly be embraced by the Insurer itself, now or later on". These outsourcing courses of action are turning out to be progressively intricate.

The guarantor should guarantee that outsourcing courses of action neither decrease its capacity to satisfy its commitments to Policyholders nor block powerful supervision by IRDA. Safety net providers accordingly need to find a way to guarantee that the administration supplier

utilizes the same benchmarks in performing the administrations as would be utilized by them if the exercises were led in house. In like manner, back up plans ought not take part in outsourcing that would bring about their inside control, business conduct or notoriety being traded off or debilitated.

Exercises of back up plans are extensively characterized into two classes to be specific "Center" and 'Non-Core', as per Regulation 7(c) of IRDA (Registration of organizations) Regulation, 2000.

Center Activities

All exercises identifying with:-

i.Underwriting,

ii. Item outline and all Actuarial capacities and Enterprise wide Risk Administration

iii. Venture and related capacities

iv. Store Accounting including NAV estimations

v. Conceding or Repudiation of all Claims

vi. Bank Reconciliation

vii. Policyholder Grievances Redressal

viii. Endorsing Advertisements

ix. Market Conduct issues

x. Arrangement of Surveyors and Loss Assessors

xi. Consistence with AML, KYC and so on.

xii. Every single indispensable part of the above exercises might be dealt with as Core Activities Strategy Servicing and related exercises Back up plans should not outsource any of the center exercises recorded

NON CORE ACTIVITIES:

i. Office administration i.e. Housekeeping, Security, Catering, and so on.

ii. PF Trust

iii. Inner review, Internal/branch/simultaneous review and so forth. (Note: However, the Board of Directors should choose the interior/branch/simultaneous reviewer in light of the suggestion of the Audit Committee/ Speculation Committee individually as commanded by the Authority in

Corporate Governance Guidelines. The report of inside evaluator/ simultaneous reviewer should be put before the Audit Committee/ Speculation Committee/Board Meeting for their data and vital activity)

iv. Site Development and Management/Software and other IT Support

v. Pay Roll Management

vi. HR Services

vii. Administration Tax Consultancy and Support

viii. TDS recording

ix. Consistence with work laws

x. Information passage Including Scanning, Indexing Services

xi. Printing and posting of updates and different reports

xii. Pre vocation medicinal checkups

xiii. Updates for Premium Payment

xiv. Call Center and outbound calling for enrolling grievances or noting enquiries

xv. Claim Processing for Overseas Medical Insurance Contracts

xvi. Tele-promoting

xvii. Consultancy Services relating to Service Tax, Income Tax and any different charges payable by back up plan

xviii. Other Employee Benefits

xix. Organization of faculty inside the premises/workplaces of the Insurer on an agreement premise