The Insurance Regulatory and Development Authority has released a draft for amendments in rules for the investments in insurance and reinsurance companies.
Through the proposed amendments, it intends to set the limits of investment in insurers, provide the lock-in period on investment in insurers and simplify the process of registration of insurance companies, the draft which is available on its website showed.
It is also aimed to provide criteria for investment by Private Equity funds in the insurance sector.
Regarding investments by PE funds, it said they will be eligible to invest if and only their parent fund has completed 10 years of operation.
The funds raised by the PE Fund including its group entity(ies) must be USD 500 million or more (or its equivalent in INR); the investible funds available with the PE Fund is not less than USD 100 million, and The PE Fund has invested in the financial sector in India or the other jurisdictions, the draft said.
On annual fee, the draft said an insurer who has been granted a Certificate of Registration under relevant sections of theAct shall pay, an annual fee for every financial year to the Authority before January 31 of the preceding financial year.
The annual fee shall be higher of ten lakh rupees, and "one-twentieth of one per cent of total gross premium written direct by an insurer in India during the financial year preceding the year in which the annualfee is required to be paid, or rupees ten crore whichever is less."
The views/comments of the various stakeholders and the general public are invited on the exposure draft.
"The comments/suggestions, if any, may be sent on or before 3rd November, 2022 to Mr. Nirmal Jain at nirmal.jain@irdai.gov.in with a copy to Mr. Mahesh Agarwal at maheshagarwal@irdai.gov.in in the format as per Annexure B (attached herewith)," it said.
( With inputs from ANI )
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