Page 44 - Insurance Times December 2015 SAMPLE

GUIDELINES ON
INDIAN OWNED AND
CONTROLLED:
CLARITY ON
COMPLIANCE TO BE
ENSURED BY
INDIAN INSURANCE
COMPANIES

Introduction Gazette on 23rd March, 2015). Also, the provisions of
erstwhile Insurance Act, 1938 (hereinafter referred to as
The Insurance Regulatory and Development Authority of "Act 1938") were substituted through the Amendment Act,
India (IRDAI) has issued guidelines on "Indian owned and 2015 in order to align with the provisions of the Companies
controlled" vide Ref. No. IRDA/F&A/GDL/GLD/180/10/2015 Act, 2013 (hereinafter referred to as "Act, 2013").
dated 19th October, 2015 (date of issue) clarifying the issues
pertaining to the compliances to be ensured by an Indian All the existing Indian insurance companies' needs to comply
insurance company to be known as Indian owned and with the disclosure requirements stated under the
controlled (Guidelines). Guidelines within a period of 3 months from the date of
issue i.e. up to 18th January, 2016 and for the companies
Prior to issuance of guidelines, the Central Government in coming into existence post issuance of Guidelines the same
consultation with IRDAI came up with the Indian Insurance needs to be complied before grant of certificate of
Companies (Foreign Investment) Rules, 2015 (hereinafter registration.
referred to as "Rules 2015") effective from February 19,
2015 taking a significant step towards the most awaited Provisions under Rules 2015
reforms i.e. increasing the foreign investment cap from 26
per cent to 49 per cent which was then embedded in an Rule 4 of Rules 2015 states -
Insurance Laws (Amendment) Act, 2015 (hereinafter An Indian Insurance Company shall ensure that its
referred to as "Amendment Act, 2015") which came into ownership and control shall remain at all times in the hands
force from 26th December, 2014 (published in the Official of resident Indian entities referred to in clauses (k) and (l)
of rule 2.
About the author
Rule 2(k) defines the term Indian Control of an Insurance
Niddhi Parmar Company as under-
"Indian Control of an Indian Insurance Company" means
Vinod Kothari & Company Control of such Indian Insurance Company by resident Indian
Corporate Law Services Division

40 The Insurance Times, December 2015

Copyright@ The Insurance Times. 09883398055 / 09883380339