IRDA releases draft guidelines on e-settlement system

The Insurance Regulatory and Development Authority (IRDA) has released a draft guidelines on participation in its Electronic Transaction Administration and Settlement System (ETASS) here on Monday.

The ETASS is essentially an electronic platform deployed for insurance-related clearing house operations. "The authority intends to provide the regulatory framework governing various aspects of conduct of the ETASS system," the IRDA website said.

The IRDA has requested all interested parties to provide their feedback on the topic by April 4. The IRDA had initiated setting up of ETASS for co-insurance and re-insurance transactions. The development of ETASS is currently underway and the co-insurance module for the fire insurance portfolio is expected to be operational in a short time, the IRDA website said.

The general insurers, reinsurance brokers and reinsurers would have to participate in the ETASS system for co-insurance and re-insurance business which they transact, the IRDA website said.