Page 25 - Insurance Times July 2016

change Board of India under the Depositories of insurance repositories and shall call for "Request
Act, 1996. for Proposals" as and when deemed necessary.

d. A company fully promoted by either life insur- (2) On calling for 'Request for Proposal' an application
ance council or general insurance council or by for the grant of a certificate of registration as an
both together or jointly with any of the above. "insurance repository" shall be made to the Author-
ity in Form - Insurance Repository -1. It shall be ac-
e. Any other institution permitted by the Author- companied by a non refundable processing fee of
ity. Rs 10,000/- drawn on IRDA, Hyderabad.

(2) One of the main objects of the company shall be to (3) No person shall act as an insurance repository un-
act as an insurance repository of "e insurance poli- less it obtains a certificate of registration from the
cies" issued by insurers and to undertake their Authority and no insurer shall engage an insurance
changes, modifications and revisions based on such repository who has not obtained a certification of
requests by policyholders. registration from the Authority.

(3) The Net Worth of the applicant, on grant of in-prin- (4) The power of the Authority to grant the certificate
ciple approval by the Authority, shall be at least Rs of registration shall be final.
25 Crores before issuance of certificate of registra-
tion to it. (5) The certificate of registration shall be renewed ev-
ery year on payment of an annual fee of Rs 20,000
(4) The applicant or its sponsors shall have demon- in favour of IRDA payable at Hyderabad unless the
strable competence and experience of similar ac- Authority decides, either to suspend or cancel it,
tivities, volumes and technology. as provided in these Guidelines.

(5) The applicant or its sponsors shall have proven fi- 6) Impact of modifications on earlier
nancial and organizational strength to undertake regulations in insurance:
and execute the project.
More recently, IRDA has taken certain initiatives in the form
(6) The applicant or its sponsors shall have no conflict of specific regulations / modifications to existing regulations.
of interest with insurance business. There are certain distribution related modifications with a
view to ensuring that there is no scope for the involvement
(7) The insurance activities to be undertaken by the ap- of unlicensed personnel / entities in the sale of insurance
plicant shall be under the sole supervision of the Au- products. There is also no scope for payment of any remu-
thority with no conflict with the supervisory role of neration other than commission where sale has been af-
other regulatory bodies.

(8) The applicant shall have no foreign direct invest-
ment.

(9) Any transfer of shares exceeding 5% of the paid up
capital in the applicant company shall require prior
approval of the Authority.

(10) The insurance repository or its approved person
shall not be engaged in insurance solicitation or in
any of insurance related activities and services. Pro-
vided that any IRDA licensed entity may act as
approved person.

(11) To avoid a potential conflict of interest no insurance
company shall hold more than 10% of the paid-up
capital of the applicant company or hold any mana-
gerial position in the applicant company.

3. Application for grant of certificate of registration:
(1) The Authority shall have power to limit the number

The Insurance Times, July 2016 25