Page 11 - Insurance Times May 2024

IRDAI approves eight IRDAI glare on Hinduja pro- will now go back to Hinduja group about
IRDAI's stand on certain issues in the
principle-based regula- posal to take over RCap, its proposal and the group has to make a
tions insurance arms great deal of changes in the proposal
IRDAI has approved eight principle- IRDAI has flagged several issues with to meet the requirements of IRDAI.
based regulations including the much- the Hinduja group's proposal to take
awaited Bima Sugam marketplace. over Reliance Capital Ltd (Rcap), an in- IRDAI seeks IIHL backer de-
In its board meeting, IRDAI cleared solvent company in the Anil Ambani-led tails
the regulatory changes under rural, Reliance group. The proposal was sub- IRDAI has sought details of the 600-odd
social sector and motor Third-Party mitted by the Rcap administrator, ap- shareholders of IndusInd International
(TP) motor insurance. For rural obli- pointed by the Reserve Bank of India,
gations, the unit of measurement will to IRDAI for approval. Holdings Ltd (IIHL), the Hinduja Group
now be the gram panchayat. The As the execution of the resolution plan entity set to acquire an insolvent Reli-
scope of the social sector has been for financially distressed Rcap is now in ance Capital Ltd (RCap), according to a
extended to cover cardholders and the final lap, administrator Y 20 March letter from the regulator.
beneficiaries under various schemes. The plan is to be implemented within
Nageshwara Rao has sought IRDAI's
Under Motor TP, the unit of measure- approval for the deal as Rcap has three 90 days from the date of the order.
ment will be the renewal of cover- insurance companies - Reliance General IRDAI's letter says that during the meet-
age for goods and passenger-carry- Insurance Company, Reliance Nippon ing on 12 December, the administrator
ing vehicles, as well as tractors. Life Insurance Company and Reliance was "requested to arrange the details
The IRDAI (Bima Sugam - Insurance Health Insurance Company. of proposed transferee IIHL, IIHL BFSI
Electronic Marketplace) Regula- In February, the National Company Law (India), and AELLP (Aasia Enterprise
tions, 2024, aims to establish a digi- Tribunal (NCLT) had approved Hinduja LLP)". While the administrator on 13
tal public infrastructure named Bima Group firm Indusind International Hold- February mailed a draft response as
Sugam towards universalization and ings' (IIHL) Rs. 9,650-crore resolution received from IIHL, the insurance regu-
democratization of insurance as well plan for RCL and later set the date of lator found it to be incomplete.
as empowering and safeguarding "From the draft response, it is indicated
policyholders' interests and achieve May 31 to complete the transaction. that IIHL has 600 shareholders and none
the vision of "Insurance for all by The administrator, among other things,
2047", IRDAI said. has sought approvals for transfer of of whom holds more than 10% of
shares," said the IRDAI letter. IRDAI
The IRDAI (Corporate Governance shares from Rcap to a new holding com- sought details of these 600 sharehold-
for Insurers) Regulations, 2024 aim pany promoted by the Hindujas called ers, including their names, country of
to establish a robust governance Aasia Enterprises LLP (AELLP). Ashok P
framework for insurers, defining the Hinduja, youngest of the four Hinduja incorporation or citizenship, and the
roles and responsibilities of the board brothers, Harsha A Hinduja and Shom percentage of equity held. It has also
and management. This is for the first A Hinduja are the directors of AELLP. asked for details of the equity stake held
time that the governance aspects by major shareholder groups in IIHL
In a letter to the administrator, IRDAI
under the existing guidelines are no- said: "The said transaction structure is "acting in concert".
tified in the form of regulations,
which highlights the importance of (an) indicative structure subject to Join
governance in the functioning of an change. You are requested to provide
insurance company, IRDAI said. definitive structure, along with details Online Certificate
of the entities involved, in order to carry
It said the IRDAI (Insurance Products) out due-diligence." After initial discus- Course on
Regulations, 2024 merge six regula-
sions with the administrator, IRDAI has
tions into a unified framework aimed
at enabling insurers to swiftly respond written to it asking for clarifications on Reinsurance
to evolving market demands, enhanc- some of the fundamental issues involv-
ing the ease of conducting business ing the deal. For details please visit
and boosting insurance penetration. Industry sources said the administrator www.smartonlinecourse.co.in

The Insurance Times May 2024 11