Section 3 in The Insurance Regulatory And Development Authority (Obligations Of Insurers To Rural Or Social Sectors) Regulations, 2002
3. Obligations .-Every insurer, who begins to carry or insurance business after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall, for the purposes of sections 32-B and 32-C of the Act, ensure that he undertakes the following obligations, during the first five financial years, pertaining to the persons in-
(a)rural sector,(i)in respect of a life insurer,-(I)seven per cent. in the first financial year;(II)nine per cent. in the second financial year;(III)twelve per cent. in the third financial year;(IV)fourteen per cent. in the fourth financial year;(V)sixteen per cent. in the fifth financial year, of total policies written direct in that year;(ii)in respect of a general insurer,-(I)two per cent. in the first financial year;(II)three per cent. in the second financial year;(III)five per cent. thereafter, of total gross premium income written direct in that year;(b)social sector, in respect of all insurers,-(I)five thousand lives in the first financial year;(II)seven thousand five hundred lives in the second financial year;(III)ten thousand lives in the third financial year;(IV)fifteen thousand lives in the fourth financial year;(V)twenty thousand lives in the fifth financial year:Provided that in the first financial year, where the period of operation is less than twelve months, proportionate percentage or number of lives, as the case may be, shall be undertaken:Provided further that, in case of a general insurer, the obligations specified shall include insurance for crops:Provided further that the Authority may normally, once in every five years, prescribe or revise the obligations as specified in this regulation.
