Amended notification of the Insurance Regulatory and Development Authority of India (Indian Insurance Companies) (Amendment) Regulations, 2021 (dated -08.07.2021) – IRDAI
View PdfAmended notification of the Insurance Regulatory and Development Authority of India (Indian Insurance Companies) (Amendment) Regulations, 2021 (dated -08.07.2021) – IRDAI
- This notification has come into effect from 07.07.2021.
- After regulation 5, the following regulations shall be inserted, namely: –
- “Requirement of Resident Indian citizenship for Directors, Key Management Persons, etc. 5A. In an Indian Insurance Company having foreign investment, —
- a majority of its directors, a majority of its Key Management Persons, and at least one among the chairperson of its Board, its managing director and its Chief Executive Officer, shall be Resident Indian Citizens.
- Explanation: For the purpose of this regulation, the expression “Resident Indian Citizen” shall have the same meaning as assigned to it in clause (o) of sub-rule (1) of rule 2 of Indian Insurance Companies (Foreign Investment) Rules, 2015.
- Requirements for foreign investment exceeding forty-nine percent 5B. In an Indian Insurance Company having foreign investment exceeding forty-nine per cent. ,— (a) for a financial year for which dividend is paid on equity shares and for which at any time the solvency margin is less than 1.2 times the control level of solvency, not less than fifty percent of the net profit for the financial year shall be retained in general reserve; and (b) not less than fifty per cent of its directors shall be independent directors, unless the chairperson of its Board is an independent director, in which case at least one-third of its Board shall comprise of independent directors.”
- In Regulation 10, a. In clause (e) of sub-regulation (2), the words “forty-nine percent” shall be substituted with words “seventy-four percent”. b. In sub-regulation (2), clauses (f) and (g) shall be omitted. c. In sub-regulation (2), after clause (f), the following clause shall be inserted, namely: – “(fa) In case the applicant has foreign investment, an affidavit by the managing director, chief executive officer or whole-time director and the promoters of the applicant certifying that the requirement of regulation 5A shall be complied with.”. d. In sub-regulation (2), after clause (g), the following clause shall be inserted, namely:“(ga) In case, the applicant has foreign investment exceeding forty-nine percent, an affidavit by the managing director, chief executive officer or whole-time director and the promoters of the applicant certifying that the requirement of regulation 5B shall be complied with.”
- Regulations 29, 30 and 31 shall be omitted.
- After regulation 31, the following regulation shall be inserted, namely “31A.
- Every Indian Insurance Company having foreign investment, existing on or before the date of commencement of the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2021, shall within one year from the commencement of the rules, comply with the requirements of the provisions of regulation 5A of these regulations.
- An undertaking confirming compliance with provisions of Regulation 5A shall be filed by the Indian Insurance Company duly signed by the Chief Executive Officer and Chief Compliance Officer within 45 days from the date of the meeting of the Board of Directors, whereat such compliance has been confirmed.
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- Every undertaking shall be accompanied by:
- A certified copy of resolution passed by the Board of Directors confirming the compliance of sub-regulation (1); (ii) Where applicable, certified copy of the agreement / Joint venture Agreement where amendments to the agreement / joint venture agreement have been carried out to give effect to the provisions of these regulations.
- An existing Indian Insurance Company with foreign investment exceeding 49 percent shall ensure compliance with regulation 5B of these regulations.”
- Various insertions and substitutions done in this attached notification. ETC.,
