39. [ Minimum information to be maintained and the checks and other verifications to be adopted [ Substituted by G.S.R. 1275, dated 28.5.1969.]
.-(1) Every insurer shall maintain at the principal place of business of the insurer in India the items of information specified in sub-rules (2) and (3):Provided that where it is not convenient or practicable to maintain any item of information in full detail at such principal office, it may be maintained at the branches or other offices in such way, however, that each such branch or office maintains the relevant part of the information applicable to its working:Provided further than an insurer carrying on solely re-insurance business shall be deemed to have complied with the provisions of sub-rules (2) and (3) if the information required to be maintained under those sub-rules is readily available from the records of such insurer.(2)The following items of information shall be maintained in respect of each class or sub-class or insurance business, namely:--(i)a record of cover-notes issued specifying the identification number, name of party, dates of commencement and where applicable expiry of risk, type of cover granted or cross-reference to the relevant policy and the amount of premium or other money received:Provided that if duplicate copies of cover-notes are maintained in serial order, the requirement of the provision shall be deemed to have been complied with;(ii)a record of policies, which should be serially numbered listing all policies issued, entered in chronological order, stating the number of policy, dates of commencement and expiry of risk, name of the insured, premium received, cross-reference to the relevant Bank Guarantee or deposit and the nature of risk granted, cross-reference to any endorsement passed subsequent to the issue of the policy:Provided that a serially filed collection of duplicate copies of policies issued shall be deemed sufficient compliance with this requirement, if they are serially numbered and all the relevant information specified in this clause are entered therein;(iii)a record of premium showing according to chronological order of receipt of premiums received, date of receipt, the amount; and name of party from whom received and with cross-reference to policy number or to other document showing the occasion for the payment of such premium:Provided that if this information is readily available otherwise from the records, a separate record under this head need not be maintained;(iv)a record of endorsements mentioning the policy number to which attached, dates of commencement and expiry of the endorsement, the type of endorsement and the additional premium charged or refund premium due and cross-reference to the premium register:Provided that serially filed duplicate copies of endorsements shall be deemed to comply with this requirement if they are serially numbered and each copy contains information about the policy number of the policy to which it is attached;(v)a record of Bank guarantees and deposits giving particulars of the party, amount and conditions of guarantee or deposit and cross-reference to the relevant policy or policies:Provided that if this information is readily available otherwise from the records, a separate record under this head need not be maintained;(vi)a record of claims intimated mentioning name of claimant, giving reference to policy number, date of intimation of claim, interest covered, nature and cause of the loss or damage, provisional estimate of loss, amount at which settled, date of settlement of claim, recoveries from salvage or otherwise and whether surveyed:Provided that two separate records, one relating to claims intimated and the other relating to claims paid, may be maintained if there is adequate cross-referencing of information between them and if the information required under this clause is readily available from them taken together.(3)The following item of information shall be maintained for the business of the insurer as a whole, namely:--(i)a register of agents, giving in respect of each agent, name, address and particulars of agents' license held, date of appointment and date of termination of appointment, if any:Provided that a collection of cards or folios shall be deemed sufficient compliance with this requirement if they are filed in a systematic order and contain all the information required under this clause;(ii)a record of agents giving particulars of business procured by each agent, the amount of premium received on such business and the amount of commission paid thereon;(iii)duplicate copies of appointment letters issued to the agents, field workers and members of the staff and changes therein;(iv)a record of employees, excluding salaried field workers, showing name, date of appointment, present designation, present salary and cross-reference to appointment letter and date of termination, if any;(v)a record of field workers showing name, date of appointment, present designation, and present salary, showing the business expected from and written by them with cross-reference to appointment letters and date of termination, if any;(vi)cash book and disbursement book;(vii)a record of investments giving separately for immovable property, securities and scripts, loans on mortgages and other loans, particulars of all the investments held showing the changes occurring therein from time to time;(viii)a record of other assets, such as, deposits, amounts due, sundry debtors, furniture and fixtures, stationery, and cash in hand and with Banks:Provided that in respect of cash in hand and with Banks the requirements of this clause shall be deemed to be complied with if the information about the amount of such cash is readily available from the cash book or other records.(4)Every insurer shall obtain and maintain legally valid receipt for every payment made and shall maintain the receipts filed in a systematic manner either chronologically or in some other convenient order.(5)Every insurer shall, in respect of any payment made to an employee or other person on account of travelling expenses, maintain a record showing full details of the journey performed, purpose of the journey, details of the fares paid and allowances granted.(6)Every office of an insurer shall maintain an attendance register of clerical and subordinate staff indicating employees who attend the office each day.(7)Every office of an insurer issuing any documents used for evidencing of the assumption of risk shall ensure that such documents are serially numbered, shall maintain a record of the serial numbers of the forms of the documents issued to each person, and shall maintain a proper check to verify that all the forms of documents issued are properly accounted for.(8)Every insurer shall retain all the documents relating to claims settled including copies of any survey or loss assessment reports connected therewith:(i)in respect of every loss or damages on which a claim of less than Rs. 5,000 has been made, for a period of three years;(ii)in respect of every loss or damage on which a claim of Rs. 5,000 or more but less than Rs. 20,000 has been made, for a period five years;(iii)in respect of every loss or damage on which a claim of Rs. 20,000 or more but less than rupees one lakh has been made for a period of seven years; and(iv)in respect of every loss or damage on which a claim of rupees one lakh or more has been made, for a period of twelve years;such period being counted from the date on which the claim is settled.(9)Every insurer shall maintain a record setting out the names of each insurance company with which he has entered into any permanent facultative re-insurance arrangement, and such record shall show the terms on which re-insurance arrangements have been entered into and the commissions paid or received under each transaction.(10)Every insurer shall maintain a record setting out particulars of each and every facultative re-insurance ceded or accepted and such record shall show the name of each insurer with whom the transaction has been entered into.(11)Every insurer shall maintain a record setting out the names of each insurer with which he has entered into re-insurance treaties from any of his offices in India, and such record shall include all the details of the terms of the treaties.(12)(a)Every insurer shall maintain the following accounts in his ledgers, namely:--(i)Re-insurance Accepted Account;(ii)Re-insurance Commission Paid Account;(iii)Re-insurance Claims Payable Account;(iv)Re-insurance Claims Paid Account;(v)Re-insurance Ceded Account;(vi)Re-insurance Commission Received Account;(vii)Re-insurance Claims Recoverable Account;(viii)Re-insurance Claims Recovered Account;(b)An insurer shall be deemed to have complied with the provisions of clause (a) if the information required is otherwise readily available from the existing books and accounts of the insurer.]
