IRDAI amends the IRDAI (Registration and Operations of International Financial Service Centre Insurance Offices) Guidelines, 2017

Nov 28, 2019 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on November 27, 2019, amends the IRDAI (Registration and Operations of International Financial Service Centre Insurance Offices) Guidelines, 2017 for regulating the process of registration and operations of insurers and reinsurers in International Financial Service Centre, Special Economic Zone (SEZ) pursuant to the amendment in the Insurance Act, 1938 by the Finance Act, 2019, a new Section 6(3) is inserted stating that no insurer, being a foreign company engaged in re-insurance business through a branch established in an International Financial Services Centre, shall be registered unless it has net owned funds of not less than Rs. 1000 crore.

The following is the amendment made in the IRDAI (Registration and Operations of International Financial Service Centre Insurance Offices) Guidelines, 2017:-

 Clause 8(b) related to “Net Owned Fund (NOF)” has been substituted, namely:-

i. The applicant, which is a foreign company engaged in re-insurance business and proposes to establish a branch in an International Financial Services Centre, shall also have net owned funds (NOF) as specified in Section 6(3) of the Insurance Act, 1938 at the time of application for registration.

ii. Such NOF shall be maintained by the applicant at all times during the subsistence and validity of its registration. Provided that the applicant shall inform the Authority about change in shareholding pattern or ownership of the applicant company, if any, within 30 days of effecting such change.

[IRDA/RI/GDL/SEZ/211/11/2019]


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