The Insurance Regulatory and Development Authority of India, (IRDAI), on May 22, 2024, notified the Master Circular on Corporate Governance for Insurers, 2024.
The following has been stated-
•This Master Circular shall be applicable to all insurers except foreign companies engaged in re-insurance business through a branch established in India.
•This Master Circular becomes effective upon issuance. However, Insurers are given time up to June 30, 2024, to ensure compliance with its provisions. Further, where specific timelines are specified for certain compliances in this Master Circular, such timelines shall remain the same.
•The Corporate Governance framework should clearly define the roles responsibilities and accountability within an organization with built-in checks and balances. An efficient corporate governance framework allows an insurer to maintain flexibility and transparency, promptly respond to operational changes, and make timely decisions. It ensures that decision-making powers are not overly centralized.
•This framework also strengthens the capacity of key stakeholders responsible for the insurer's governance—such as the Board, Senior Management, and Key Persons in Control Functions—to effectively and prudently manage the insurer's business.
[Notification No. IRDAI/F&I/CIR/MISC/82/5/2024]
