The Insurance Regulatory and Development Authority of India (IRDAI) on March 22, 2024, issued the Insurance Regulatory and Development Authority of India (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024.
The main objective is to promote growth of insurance sector by simplifying the process of registration of insurer, transfer of shareholding, other forms of capital, amalgamation of insurers, listing of shares of insurers on stock exchange and to promote ease of doing business.
The following provisions have been stated:
• An applicant may make requisition for registration application for any one of the following class of business of insurance:
o Life insurance business.
o General insurance business.
o Health insurance business exclusively.
o Reinsurance business exclusively.
• An applicant shall not be eligible to apply for the requisition in the following circumstances:
o Where the requisition for registration application or the application for registration has been rejected at any time during two financial years preceding the date of application; or
o Where Certificate of Registration has been cancelled by the Authority at any time during two financial years preceding the date of application; or
o Where the name of the applicant does not contain the words ‘insurance’ or ‘assurance’ or ‘reinsurance’.
• No-objection Certificate (NOC)
o No company or co-operative society shall be incorporated in India with a name that contains words ‘insurance’ or ‘assurance’ or ‘reinsurance’ without obtaining a No-objection Certificate from the Competent Authority.
o Upon request to issue the NOC in the specified format, NOC may be issued, after due examination of the said request.
o The No-objection Certificate issued shall be valid for a period of 6 months from the date of the Certificate, within which period the applicant shall file the application for issuance of requisition for registration application, in the specified form i.e. Form IRDAI/R1:
Provided that the validity of the No-objection Certificate may be extended by the Competent Authority for a further period of three months for the reasons to be recorded in writing.
• After examining the matters considered relevant and upon its satisfaction, the applicant may be registered as an insurer for the class of business for which the applicant is found suitable and the Authority may grant the applicant the Certificate of Registration in Form IRDAI/R3 subject to the following conditions:
o The applicant and its promoter(s) and investor(s) shall be “Fit and Proper” on a continuous basis;
o The promoter(s) and investor(s) shall comply with the lock-in period specified in these regulations, on their shareholding from the date of grant of Certificate of Registration;
o The applicant/insurer, its promoter(s) and investor(s) shall comply with the provisions of the Act as well as Rules, Regulations, Guidelines, Circulars etc. framed thereunder at all times.
o The applicant, promoter(s) and the investor(s) shall at all times comply with all the applicable conditions, subject to which the certificate Form IRDAI/R3 has been issued;
o The applicant shall furnish, within 15 days, evidence of applicant having allotted shares to its promoters and investors in accordance with section 6 of the Act and having complied with the conditions as per R1 approval and R2 approval.
o Such other conditions as may be deemed fit at the time of grant of Certificate of Registration.
These regulations shall come into force on March 22, 2024.
These regulations shall be reviewed once in every 3 (three) years from the date of publication unless a review, repeal or amendment is warranted earlier.
[Notification No. IRDAI/Reg/6/200/2024]
