Page 28 - Life Insurance Today March 2016
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Circular
IRDAI Circular
Extension of date for continuance of existing ria of Indian Ownership and Control by all the Indian Insur-
Micro Insurance Products ance Companies within a period of three months, i.e. by
the 18th of January, 2016. The stipulations are applicable
Ref: IRDA/LIFE/CIR/Min/225/12/2015 to all the insurers irrespective of the extent of foreign
Date: 29-12-2015 shareholding. The Guidelines also provide, on an applica-
tion made to the Authority by an insurer, for an extension
The Authority hereby draws attention to Regulation VI of the period of compliance by a further period of three
under Schedule III of Insurance Regulatory and Develop- months.
ment Authority of India (Micro Insurance) Regulations,
2015; wherein it is mandated that "All the existing Micro While some insurers have applied to the FIPB as well as the
Insurance Products that are not in compliance to these Authority, seeking approval for change in their shareholding
regulations shall be withdrawn with effect from 1st Janu- pattern and revision in the limit of foreign investment,
ary, 2016." majority of insurers have not done so. It may be empha-
sized that the Guidelines provided a maximum period of
It is observed that since the date of notification only a few six months for compliance from the date of issue.
products have been filed by the insurance companies till
date. Hence to ensure availability of the Micro Insurance Considering that a majority of insurers have not applied to
(MI) products adequately, in the interest of the segment the Authority either for change in shareholding or for ex-
of low income group, the Authority extends the date for tension of time limit for reporting compliance as envisaged
continuance of existing MI products till 31.03.2016. under the guidelines and that the requirement is manda-
tory in terms of the Insurance Act, 1938 and the Indian
This Circular is issued by the Authority under the powers Insurance Companies (foreign Investment) Rules, 2015, the
vested in Regulation 18 of Insurance Regulatory and De- Authority is inclined to advise as under:
velopment Authority of India (Micro Insurance) Regula- I. All insurers should confirm and report compliance with
tions, 2015.
the Indian ownership and control criteria as envisaged
Member (Life) in the applicable Insurance law within 3 months of the
date of the Guidelines, i.e. on or before 18th January,
Reporting of Compliance regarding Indian 2016;
Ownership and Control
II. All insurers who are not in a position to comply with
Ref: IRDA/F&A/CIR/CPM/224/12/2015 the stipulations as regards the Indian ownership and
Date: 23-12-2015 control should furnish a confirmation on or before 18th
January, 2016 from their Board of directors assuring
Attention is drawn to the Guidelines on Indian Owned and of reporting compliance within a maximum period of
Controlled issued by the Authority Ref. IRDA/F&A/GDL/ six months from the date of the Guidelines.
GLD/ 180/10/2015 on the 19th October, 2015. The Guide-
lines envisage confirmation of compliance with the crite- (V R Iyer)
Member F & I
"The opposite of love is not hate, it's indifference. The opposite of art is not ugliness, it's indifference. The opposite of faith is not
heresy, it's indifference. And the opposite of life is not death, it's indifference."
28 March 2016 Life Insurance Today
