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ARTICLE · 08 SEPTEMBER 2024

Obligatory Cession For The Financial Year 2024-25

JSA Advocates & Solicitors
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In line with Section 101A of the Insurance Act, insurers are required to reinsure with Indian re-insurers a specified percentage of the sum assured on each policy ("Mandatory Cessions").

IndiaInsurance
Sidharrth Shankar
Sidharrth Shankar
Varun Sriram
Varun Sriram
Dhruv Malhotra
Dhruv Malhotra
Abhik Sriram Kunduri
Abhik Sriram Kunduri
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In line with Section 101A of the Insurance Act, insurers are required to reinsure with Indian re-insurers a specified percentage of the sum assured on each policy ("Mandatory Cessions"). To facilitate this, IRDAI released a notification prescribing Mandatory Cessions applicable to Indian re-insurers and other applicable insurers.1 The Mandatory Cession of the sum insured on each general insurance policy to be reinsured with the Indian re-insurer(s) is set at 4% of insurance attaching during the financial year beginning from April 1, 2024 to March 31, 2025, except for terrorism premium and premium ceded to nuclear pool (which will be NIL).

The percentage of commission on obligatory cession for different classes of business are as follows:

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