Market share of insurance brokers in india
However, voting rights of shareholders are restricted to equity shares only. A foreign company carrying on reinsurance business through a branch in India is required to have net owned funds of INR50 billion. Every insurer and re-insurer shall at all times maintain an excess of value of assets over liabilities of not less than 50 per cent of the amount of minimum capital that such insurer or re-insurer is required to bring. The Corporate Governance Guidelines for Insurance Companies require each insurer to, inter alia, form a Policyholder Protection Committee except reinsurance companies and branches of foreign reinsurers in India.
The committee is responsible for addressing the various compliance issues relating to protection of the interests of policyholders and keeping the policyholders well informed of, and educated about, insurance products and complaint-handling procedures.
The committee will directly report to the board of directors of the insurance companies. A scheme for amalgamation must be submitted to, and approved in principle by, IRDA then advertised to policyholders, following which IRDA will give final approval if the merger is in the best interests of the policyholders.
If an insurer is engaged in both direct insurance as well as reinsurance business, these regulations are applicable only in respect of direct insurance business of such insurers. An insurer is prohibited from outsourcing the following activities in any manner whatsoever:. The Outsourcing Regulations are applicable to all existing outsourcing arrangements.
However, any existing outsourcing arrangement to which these Outsourcing Regulations become applicable, is required to be appropriately amended to bring such arrangement in compliance with these Outsourcing Regulations within days from the date of the Outsourcing Regulations coming into effect. All arrangements which do not comply with the Outsourcing Regulations within days of the date of the Outsourcing Regulations coming into effect, will be automatically treated as terminated and no compensation will be payable to the outsourcing service provider for continuance of such services beyond the period.
The board of directors of the insurer shall put in place an outsourcing policy governing the framework for inter alia i assessment of risks in outsourcing, ii parameters for determining materiality, cost benefit analysis of each of the outsourced activity, and iii conflict management policy that ensures adherence to the provisions on related party transactions as envisaged in Companies Act, The board of directors of the insurer shall constitute an outsourcing committee comprising of key management persons of the insurer, and shall at the minimum include the Chief Risk Officer, Chief Financial Officer and Chief of Operations.
The regulations also provide the responsibilities of the outsourcing committee. The outsourcing contracts, shall have in place certain clauses or conditions listed below, as may be applicable. The insurer is required to ensure that the outsourcing service provider shall not sub-contract, the whole or a substantial portion of any of the outsourced activity.
Insurance Regulatory and Development Authority of India has issued licences to five entities to act as Insurance Repository:. The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated.
It is governed by a number of acts. The Insurance Act of  was the first legislation governing all forms of insurance to provide strict state control over insurance business. All insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India. The General Insurance Business Act of was enacted to nationalise about general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities.
Until , there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in , thereby de-regulating the insurance sector and allowing private companies. There are 9 licensed web aggregators.
TAC is the sole data repository for the non-life industry. In addition, there are a dozen Ombudsman offices to address client grievances. To become an insurance advisor in India, Insurance Act, mandates that the individual has to be "a Major with sound mind". After the advent of IRDA as insurance regulator, it has framed various regulations, viz. The syllabus mainly aims to make an Insurance Agent a financial professional.
From Wikipedia, the free encyclopedia. Insurance Regulatory and Development Authority. Retrieved 10 July Archived from the original on 17 September Retrieved 2 September Retrieved 19 June Agriculture Insurance Company of India.
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