Duties and obligations of Appointed Actuary :

In particular and without prejudice to the generality of the foregoing matters, and in the interests of the insurance industry and the policyholders, the duties and obligations of an appointed actuary of an insurer shall include:

(a) rendering actuarial advice to the management of the insurer, in particular in the areas of product design and pricing, insurance contract wording, investments and reinsurance;

(b) ensuring the solvency of the insurer at all times;

(c) complying with the provisions of the section 64V of the Act in regard to certification of the assets and liabilities that have been valued in the manner required under the said section;

(d) complying with the provisions of the section 64 VA of the Act in regard to maintenance of required solvency margin in the manner required under the said section;

(e) drawing the attention of management of the insurer, to any matter on which he or she thinks that action is required to be taken by the insurer to avoid–

(i) any contravention of the Act; or

(ii) prejudice to the interests of policyholders;

(f) complying with the Authority’s directions from time to time;

(g) in the case of the insurer carrying on life insurance business,–

(i) to certify the actuarial report and abstract and other returns as required under section 13 of the Act;

(ii) to comply with the provisions of section 21 of the Act in regard to further information required by the Authority;

(iii) to comply with the provisions of section 40-B of the Act in regard to the bases of premium;

(iv) to comply with the provisions of the section 112 of the Act in regard to recommendation of interim bonus or bonuses payable by life insurer to policyholders whose policies mature for payment by reason of death or otherwise during the inter-valuation period;

(v) to ensure that all the requisite records have been made available to him or her for the purpose of conducting actuarial valuation of liabilities and assets of the insurer;

(vi) to ensure that the premium rates of the insurance products are fair;

(vii) to certify that the mathematical reserves have been determined taking into account the guidance notes issued by the Actuarial Society of India and any directions given by the Authority;

(viii) to ensure that the policyholders’ reasonable expectations have been considered in the matter of valuation of liabilities and distribution of surplus to the participating policyholders who are entitled for a share of surplus;

(ix) to submit the actuarial advice in the interests of the insurance industry and the policyholders;

(h) in the case of the insurer carrying on general insurance business to ensure, —

(i) that the rates are fair in respect of those contracts that are governed by the insurer’s in-house tariff;

(ii) that the actuarial principles, in the determination of liabilities, have been used in the calculation of reserves for incurred but not reported claims (IBNR) and other reserves where actuarial advice is sought by the Authority;

(i) informing the Authority in writing of his or her opinion, within a reasonable time, whether,–

(i) the insurer has contravened the Act or any other Acts;

(ii) the contravention is of such a nature that it may affect significantly the interests of the owners or beneficiaries of policies issued by the insurer;

(iii) the directors of the insurer have failed to take such action as is reasonably necessary to enable him to exercise his or her duties and obligations under this regulation; or

(iv) an officer or employee of the insurer has engaged in conduct calculated to prevent him or her exercising his or her duties and obligations under this regulation.