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#2
June 6th, 2016, 09:19 AM
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| Re: IRDA Draft Guidelines on Outsourcing
Some details of the IRDA or Insurance Regulatory and Development Authority Draft Guidelines on Outsourcing 2011 are as follows: Insurers in India are increasingly using outsourcing, as a means of both reducing cost and accessing expertise, not available internally and achieving strategic aims. 'Outsourcing' may be defined as ìInsurerís use of a third party (either an affiliated entity within a corporate group or an entity that is external to the corporate group) to perform activities on a continuing basis that would normally be undertaken by the Insurer itself, now or in the futureî. These outsourcing arrangements are becoming increasingly complex. Core Activities All activities relating to:- i. Underwriting, ii. Product design and all Actuarial functions and Enterprise wide RiskManagement iii. Investment and related functions iv. Fund Accounting including NAV calculations v. Admitting or Repudiation of all Claims vi. Bank Reconciliation vii. Policyholder Grievances Redressal viii. Approving Advertisements ix. Market Conduct issues x. Appointment of Surveyors and Loss Assessors xi. Compliance with AML, KYC etc. xii. All integral components of the above activities shall be treated as Core Non Core Activities: i. Facility management i.e. Housekeeping, Security, Catering, etc. ii. PF Trust iii. Internal audit, Internal / branch /concurrent audit etc. (Note: However,the Board of Directors shall appoint the internal /branch / concurrentauditor based on the recommendation of the Audit Committee /Investment Committee respectively as mandated by the Authority inCorporate Governance Guidelines. The report of internal auditor /concurrent auditor shall be placed before the Audit Committee /Investment Committee / Board Meeting for their information andnecessary action) iv. Website Development and Management / Software and other ITSupport v. Pay Roll Management vi. HR Services vii. Service Tax Consultancy and Support viii. TDS filing ix. Compliance with labour laws x. Data entry Including Scanning, Indexing Services xi. Printing and posting of reminders and other documents xii. Pre employment medical checkups xiii. Reminders for Premium Payment xiv. Call Centre and outbound calling for registering complaints oranswering enquiries xv. Claim Processing for Overseas Medical Insurance Contracts xvi. Tele-marketing xvii. Consultancy Services pertaining to Service Tax, Income Tax and anyother taxes payable by insurer xviii. Other Employee Benefits xix. Deployment of personnel within the premises / offices of the Insureron a contract basis   |