THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
New Delhi, Dated 31st March, 2003
No. 1-CA(7)/64/2002 : Whereas certain draft amendments further to amend the Chartered Accountants Regulations, 1988, were published by the Council of the Institute of Chartered Accountants of India, as required by sub-section (3) of section 30 of the Chartered Accountants Act, 1949 (38 of 1949), at pages 4396 to 4407 of the Gazette of India, Part III section 4, dated the 5th October, 2002 under the notification of the Institute of Chartered Accountants of India No. 1-CA(7)/64/2002 dated 24th September, 2002;
And whereas objections and suggestions were invited before the expiry of a period of forty five days from the date on which the copies of the said Gazette were made available to the public;
And whereas the said Gazette was made available to the public on 9th October, 2002;
And whereas the objections and suggestions received from the public on the said draft amendments have been considered by the Council of the Institute of Chartered Accountants of India and approved by the Central Government;
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30 of the said Act, the Council, with the approval of the Central Government, hereby, makes the following amendments in the Chartered Accountants Regulations, 1988, namely:-
- Short title and commencement. - (1) These regulations may be called the Chartered Accountants (Amendment) Regulations, 2003.
(2)They shall come into force on the date of publication in the Gazette of India.
- In the Chartered Accountants Regulations, 1988, -
(i) in regulation 204, for the words and letters "Schedules `C', `D', `E' and `F' ", the words and letters "Schedules `C', `D', `E', `F' and `G' " shall be substituted;
(POST QUALIFICATION COURSE IN INSURANCE AND RISK MANAGEMENT)
- Course for Diploma in Insurance and Risk Management (DIRM). - (1) The Insurance and Risk Management Course shall include training schemes, technical examination and an orientation course of seven days or such time as the Committee on Insurance constituted by the Council for the purpose (hereinafter referred to as the "Committee") may decide from time to time.
(2) A candidate who has successfully completed the said course shall be awarded a certificate in the approved form and be entitled to use the letters `DIRM (ICAI)' after his name.
- Administration. -Subject to regulation 176, the management of the Insurance and Risk Management Course shall be under the charge of the Committee whose functions shall include enrolment to, all activities connected with the conduct of the course, training schemes, orientation course, change/modification/revision/amendment of modules and syllabus thereof, and other allied matters.
- Admission to the Course in Insurance and Risk Management. - (1) No candidate shall be admitted to the Course unless he is a member of the Institute of Chartered Accountants of India at the time of registration.
(2) A candidate for admission to the Insurance and Risk Management Course shall apply in the approved form and pay such fees, as may be fixed by the Council, from time to time.
- Admission to the Technical Examination. - (1) No candidate shall be admitted to the Technical Examination unless he has been registered for a period of nine months or such time as the Committee may decide from time to time and produces a certificate, from the officer designated by the Committee for the purpose, to the effect that he has complied with the requirements of the training schemes as may be specified by the Committee in this behalf.
(2) An application for admission to the Technical Examination shall be made in the approved form to the Secretary, in the manner specified therein, together with such fees as may be decided by the Council.
- Papers and Syllabus for Technical Examination. - (1) A candidate for the DIRM Course shall be examined in 4 papers of 3 hours each covering 4 modules with course content as given below :
- Introduction to Risk and Insurance, Basic principles of General and Life insurance, Insurance contracts, Management of Insurance organisations ;
- Types of Insurance :
- General - personal lines and commercial lines ;
- Life - Individual, group, annuity, pensions and gratuity ;
- Regulations on investments, insurance funds with respect to shareholders funds and policy holders funds ;
- Laws Governing Insurance Accounting and Management ;
- Assets and liability management, determination of solvency margin, principles of insurance finance (fixing portfolio wise retention levels, adequacy on IBNR, IBNER, Reserve strain), Costing and pricing of insurance products ;
- Analytical case studies in emerging scenario.
- Specific areas on general insurance products, underwriting concepts, standard conditions and warranties with respect to -
- Fire - Perils, clauses, special types, discounts, consequential loss ;
- Marine - Types of Hull, clauses to hull policy, types of cargo policy, types of sale contracts and consideration ;
- Motor - Scope of cover, types of vehicles, own damage and third party claims ;
- Engineering - Types of cover with terms and conditions ;
- Miscellaneous - individual and group, personal and commercial lines, Business Protection Policies and Personal Liability Insurance - Directors and Professionals ;
- Life insurance products, premium plans, social security schemes, pension policies , group insurance schemes and financial gerontology of superannuating policies ;
- Principles of Actuarial valuation - demography, gauging the risk profile of the company, interest and life contingencies, life office valuations and methods of distribution of surplus ;
- Analytical case studies in emerging scenario.
- Economics of insurance ;
- Evolution cycle and managerial aspects of risk management - Identification, evaluation, retention and transfer, risk financing ;
- Role of loss prevention/minimisation techniques, Alternative risk transfer measures ;
- Reinsurance - legal principles, methods of reinsurance (traditional and non traditional), treaty wordings designing reinsurance programs, reinsurance markets and financial aspects ;
- Analytical case studies in emerging scenario
(2) The marks given against each module specify the marks of the papers that would be asked for the respective modules.
- Management of insurance companies, challenges of globalisation and business process reengineering ;
- Methodology of outsourcing ;
- Exchange control regulations and taxation ;
- Application of IT in insurance business, system controls, data warehousing, application of ERP for insurance companies, Customer relation management and supply chain management ;
- Design of Information Systems ;
- Business Strategies in product formulation, information marketing & advisory, distribution, reinsurance and servicing ;
- Analytical Case studies in the emerging scenario.
6. Requirements for Passing Technical Examination. - A candidate for Technical Examination shall ordinarily be declared to have passed the examination if he secures a minimum of 40 percent. marks in each of the papers and 50 percent. marks in aggregate.
7. Conduct of Technical Examination. - The Technical Examination may be conducted at such intervals, in such manner and at such time and places, as the Examination Committee of the Institute may decide from time to time and the details thereof shall be published in the Gazette of India.font>
8. Refund of Technical Examination fees. - (1) The fee paid by a candidate who has been admitted to a Technical Examination shall not except as otherwise provided in sub-paragraph (2) be refunded.
(2) Where a candidate applies to the Examination Committee for the transfer of fee to the next Technical Examination on the ground that he was prevented from attending the Technical Examination on account of circumstances beyond his control, the Examination Committee may permit the fee paid by such candidate to be adjusted towards the fee payable only for the next following Technical Examination :
Provided that no such application received after the expiry of fifteen days from the date of the Technical Examination shall be considered.
9. Declaration of Results. - (1) The result of the Technical Examination shall be declared and a copy of such result giving the list of successful candidates shall be displayed on the Notice Board of the Institute.
(2) A candidate passing the Technical Examination and undergoing such orientation course as may be prescribed by the Committee shall be granted a certificate in the approved form.
(3) All the candidates shall be communicated of the marks obtained in the Technical Examination.
(4) (a) Information as to whether a candidate's answers in the paper or papers of the Technical Examination have been examined and marks awarded shall be supplied to the candidate, on his submitting within a month of the declaration of the result of the Technical Examination an application accompanied by such fee as may be fixed by the Council.
(b) The fee shall be only for verifying whether the candidate's answers have been examined and marks awarded, and not for the re-valuation of the answers.
(c) The marks obtained by a candidate in individual question, or in section of a module shall not be supplied.
(d) If as a result of such verification, it is discovered that there has been either an omission to examine or award any marks to any answer or answers or there has been a mistake in the totaling of the marks, the fee for verification shall be refunded in full to the candidate and the result of such verification shall be communicated or supplied to such candidate.
10. Action against Candidates resorting to unfair means. - If it is reported to the Examination Committee that a candidate has resorted to or has attempted to resort to unfair means for the purpose of passing the Technical Examination, the Examination Committee shall hold an enquiry and submit a report to the Council which may, after any further investigation as it may consider necessary, take such disciplinary action against the candidate as it thinks fit:
Provided that an opportunity shall be given to the candidate of being heard, before an order adverse, to him is passed.
11. Examiners. - The Examination Committee may make such arrangements as may be considered appropriate including appointment of examiners to set the question papers and value answer books.
12. Amendments of Results. - In any case where it is found that the result of a Technical Examination has been affected by error, malpractice, fraud, improper conduct or other matter of whatever nature, the Council shall have the power to amend such result in such manner as shall be in accordance with the true position and make such declaration as the Council shall consider necessary in that behalf.
13. Advisory Board.- (1) The Committee may appoint an advisory board consisting of not more than 11 persons to advise the Committee on the syllabus, technical examinations, training schemes, orientation course, research and any other matter relating to the Course as may be referred to it.
(2) The members of the advisory board shall be eligible for travelling allowance and daily allowances according to the rates that may be approved by the Council from time to time.
Dr. Ashok Haldia