Sunday, January 15, 2012

IRDA SET TO ALLOW FOREIGN BRANCHES FOR PVT INSURERS

Private insurers that have been operating for more than 10 years would be allowed to open branches and set up insurance joint ventures, including subsidiaries, outside India. The norms would apply to all sets of insurance companies involved with life, non-life, health and reinsurance businesses. The Insurance Regulatory and Development Authority (IRDA) said that the companies should put in place appropriate arrangements to ensure policyholders' liabilities are adequately "ring-
fenced". This means any capital to start operations outside India should be met from the shareholders' fund, thereby protecting policyholders' money in the parent company. All liabilities shall be restricted to the paid-up capital of the foreign insurance joint venture.

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