Page 52 - Insurance Times July 2016
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Guidelines for Corporate Governance for 2. The Working Group will consist of the following members:
Shri Suresh Mathur, Sr. Joint Director, IRDAI -
insurers in India Chairman of the Working Group
Ref: IRDA/F&A/GDL/CG/100/05/2016 Shri Pankaj Kumar Tewari, Deputy Director, IRDAI
Date: 18-05-2016 Shri P Venkatramaiah, GM, National Insurance Co
The Authority had initially issued Guidelines on Corporate Ltd - Member
Governance for insurance companies vide circular dt. 5th
August, 2009. The Authority had also issued separate Shri Loknath Kar, Head (Legal), ICICI Lombard General
guidelines for appointment/ reappointment and Ins Co - Member
Shri N Rama Swamy, AGM, GIC Re - Member
remuneration of MD/CEO/ WTD as well as other Key Shri Vineet Singhal, DGM, National Housing Bank -
Management Persons (KMPs), as also the Appointment of Member
statutory auditors of insurers through various circulars. Shri Sarabjot Singh, Head Business Development,
In view of the extensive changes to the governance of Hannover Re - Member
companies brought about by the Companies Act, 2013, it 3. The terms of reference of the Working Group are as
was decided to review the various guidelines of the Authority under:
relating to the governance of insurance companies. After a. To study the need and scope for "Title Insurance" in
due consultation with the industry representatives and other the Indian market vis-à-vis the existing practices in
stakeholders and professionals, the Authority has drawn out the international market.
the revised Guidelines on Corporate Governance for insurance b. To identify the insurable risk and define the
companies. compensation structure
The revised guidelines combine the stipulations regarding c. To suggest the design of the product and suggest
the Corporate Governance practices, appointment of MD/ the framework for assessment of risk, pricing,
CEO/ WTD and other KMPs as well as the appointment of reserving and accounting with actuarial inputs
statutory auditors of insurers. These are applicable from FY keeping in mind the long term sustainability of the
2016-17 onwards. These guidelines shall be applicable to all product on stand-alone basis.
insurers granted registration by the Authority except that:
(i) Reinsurance companies may not be required to have d. To suggest policy wordings in line with Indian
conditions both from content and from legal
the Policyholders' Protection Committee; and perspective and suggest the mechanism for policy
servicing.
(ii) Branches of foreign reinsurers in India may not be
required to constitute the Board and its mandatory e. To ascertain the availability of reinsurance support
committees as indicated herein. in the domestic and international markets.
All insurers are hereby advised to ensure compliance with f. To assess the availability and accessibility of local
the guidelines. revenue records, ascertain the status of digitization
of land records in various states and availability of
(V R Iyer) legal expertise to support the underwriting and
Member-F&I claims management efforts of the insurer.
g. To examine any other aspect relevant to "Title
Working Group on Title Insurance Insurance".
Ref: IRDA/NL/ORD/MISC/115/16/2016 4. The Chairman of the group may invite any other person
as "Invitee" for the meetings.
Date: 10-06-2016 5. The Working Group will submit its report in two months'
1. The Authority has decided to constitute a Working Group time from the date of this order.
on 'Title Insurance' to study the scope of 'Title Insurance' (P J Joseph)
in the Indian Market. Member
52 The Insurance Times, July 2016
