The Insurance Regulatory and Development Authority of India (IRDAI) on March 20, 2024, issued a notification regarding the Insurance Regulatory and Development Authority of India (Corporate Governance for Insurers) Regulations, 2024.
This shall come into force on March 22, 2024.
The following has been stated namely: -
• It aims to guide the insurers in adopting prudent governance practices, outlining roles, responsibilities, and stewardship principles to safeguard stakeholder interests, including policyholders.
• It states that the insurers have been mandated to have a diverse and competent Board consisting of directors possessing qualifications and expertise relevant to the insurer's scale, nature, and complexity of business operations, spanning various areas including finance, risk management, customer grievance management, law, banking, securities, etc.
• It also states that the Insurers shall appoint a Managing Director/Chief Executive Officer or Whole-time Director, ensuring their fitness and propriety through effective due diligence, with appointments made by the Board based on Nomination and Remuneration Committee recommendations.
• It mentions that the insurers shall appoint a minimum of two joint statutory auditors, ensuring no conflict of interest, with appointments made by the Board based on Audit Committee recommendations.
[Notification no. - IRDAI/Reg/7/201/2024]
