Financial Information Providers in insurance sector need to enter into a contractual framework with the AAs, and the same has to distinctly specify the rights and obligations of each party and modalities of dispute resolution mechanism
Hyderabad:
The insurance regulator IRDA has now allowed the insurers and insurance repositories to share “Financial Information”, through Account Aggregators(AA) which are registered with the Reserve Bank of India (RBI).
The RBI regulation define Financial Information Provider(FIP) and it includes insurance company and insurance repositories, said the IRDAI.
AA is non-banking finance company that provides service of retrieving or collecting financial information from FIP pertaining to a customer and consolidating, organising and presenting such information to the customer or any other financial information user (FIU), on the basis of explicit consent of the customer.
FIPs in insurance sector need to enter into a contractual framework with the AAs, and the same has to distinctly specify the rights and obligations of each party and modalities of dispute resolution mechanism.
FIPs of insurance sector are expected to adopt technical specification published by the Reserve Bank Information Technology Private Limited (ReBIT),as updated from time to time and adopt required Information Technology (IT) framework and interfaces to ensure secure data flows to AA, said the IRDAI.
The technology should also be scalable to cover any other AA as may be specified by RBI in future.
There should be adequate safeguards built in IT systems of FIPs in the insurance sector to ensure that it is protected against unauthorized access, alteration, destruction, disclosure or dissemination of records and data.
The FIPs in the insurance sector will also abide by the code of conduct as specified in the IRDAI regulations/gudelines/circulars applicable to them, including redressal of grievances of the customers.
The FIPs in insurance sector must disclose prominently on their websites the names of the Account Aggregators through which the information is shared.