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The Insurance Regulatory and Development Authority of India sets conditions for insurance companies that seek approval to appoint common or nominee directors representing insurance agents or intermediaries. Insurers submit applications to the Authority under Section 48A of the Insurance Act, 1938. The proposed director must not work as an officer responsible for soliciting insurance business for the agent or intermediary. The appointment must not create any conflict of interest against policyholders. Insurers must not pay remuneration to non-executive directors without prior approval, but they can pay sitting fees. Insurers must also comply with disclosure requirements under Corporate Governance Guidelines and financial regulations. The application requires a profile, a board resolution, and a compliance certificate from the Managing Director or Chief Executive Officer.
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Ref: IRDA/F&A/CIR/MISC/141/08/2018
Date: 30ᵗʰ August, 2018
CIRCULAR
The Chairman/CEO's of All Insurance Companies
Appointment of Common/Nominee Director(s) on the Board of Insurance Company
A. The Authority receives requests from Insurance Companies seeking approval for new appointment and/or continuation of appointment of Common/Nominee Director(s) representing insurance agent or intermediary or insurance intermediary on the Board of their company under Section 48A of the Insurance Act, 1938.
B. While seeking permission from the Authority, Insurers are advised to ensure the following:-
C. The application for approval shall be accompanied by the following:-
This circular is issued in exercise of the powers conferred under Section 14(1) of the IRDA Act, 1999.
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