IRDA (Registration of Indian Insurance Companies) Regulations 2000

CNSUR'-NCE REGULATORY AND Df,VELOPMENT AUTUORITY NOTJ:F'!CATlON New Delhi, 1be H1l1 luly, 2000 Insurance Regulatory :,nd Development Authority (Re.;is1ration of lndian lnsa.raucc Compani<J) Regulation!, 2000 F. No. IFDAJRcg/7/1.000.- l/ in exercise of the po\\·crs conferrecl by section 114A of the Insurance Act. I 93~ \ 4 of I ()38) ,cad \\'1th section 2b of the Insurance Regulatory an<l Dcvelopmem Authority Act, 1999 (41 of 1999), the Au1hority. in consultation with the lnsun.mce Advisorv ( ·u111111lltee, hereby makes the lolJowing regulations, namt'iy·- C.H,\PTER I l. Shor t_ tHlc au<l commcucemcm.--( I) These regulations 111ay be called Insurance RcgulaLOry a11d Dcvt>lepmelll Authority lRegistTation of Indian Insurance ( ompanii.:s) Ri.:gul.ilion~. 2000. (2) 'I hey shull c:011Lc into force on the <late of their publication 111 the Official G;:izcttc. 2. Oe.finitious.-l n these regulauons, unless Lhe t:ontext oLherwise requires, - (a) "Ac! 111ta11,., Lilt· ln:.urance Act. 1938 (4 of 1938): 24 Tl-IE GAZETTE OF JNDlA : EXTRAORDINARY [PART m-Soc. 41 (b) "Authority" means the Insurance Regulatory and Development Authority established under sub-section ( 1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 ( 41 of l 999); (c) "certijkaw" means a certtficate of registration granted or renewed by the Authority under these regulations; (d) 'enquit}' cljficer .. means an officer of lhe Authonly or any person speci tically appo1mcd by ll to conduct an enquiry for purposes of these regulations; (e) "general w11win· h11si11ess" means the business of effecting contracts to pay annu1t1es on human hie but does not include contracts under pension business: ( f) "health mxurcmcc husiness" or "health cover means the effecting of contracts which prnv1de ~ickm:ss benefits or medical, surgical or hospital expense benefits, whether in-patient or out parient, on an indemnity. reimhursemcnt. service. pre.paid, hospital or other pbns basis, including assured benefils and long tcm1 i.:are: (g) "'fndirm prnmolcr" means and 111clu<les- (i I a company formed under the Companies Act. 1956 (I of 1956), which is nm a subsidiary as dcfim:d in section 4 of that Act: ( i1 I a banking company as defined in subsection (4A) of section 2 of the Act but'<loes not 111clude a foreign bank or branch thereof functioning in l11d1a. {iii) a f'ublic finrmcial institution as defined 111 section 4A of the Companies Act. 1956 { I of 1956): (i\') a cn-opcranve society registered under any relevant law for the lime t1ein<"• in lorcc 0 • ( ,·) a person. wlw 1s an Indian citizen or a combination of persons who arc Indian c1t1zcns: (h) ··11!fi"astrucwrefc1cilitr" means --- (i) n road. highway. bridge, airport, port, Railways including BOLT. road transport system, a wnter supply project, irrigation proJect, industrial parks. water treatmem system. solid waste management system, sarn tat1on and i;;e,,eragc system; (ii) gcnera11on or distribution or transmission of power; !!!!!! I r- C ['ll'T m-= 4J 'l1ffl 'lliT '(l'!!1!:I : ~ (iii) 1clecommunication; (iv) pro Jee I for housing; 25 (v) any other public facility ofa similar nature as may be notified by the Authority in this behalf m the Official Gazette; (i) "linked business· means life insurance contracts or health insurance contracts under which benefits arc wholly or partly to be determined by reference to the value of underlying asseis or any approved index: (j) ·'11011-li11ked husi11ess .. means life insurance contracts or health insurance contracts which are not linked business: (k) "pe11sio11 bu.~iness · includes busmcss of effecting contracts to manage investments of pension funds or superannuation schemes or comracts to pay annuities -that may be approved by the Authority in this behalf; (I) ··principal officer .. mean~ any person connected with the management of the applicant or any other person upon whom the Authority has served notire of Its intention of treating h11n as the principal officer thereof; (111) All words and expressions used herein and not defined in bill defined in the lnsurance Act. 1938(4 or 1938), or in the Insuranct:; Regulatory and Development Authority Aet. 1999 (41 of 1999), shall have the meanings respectively assigned to them m the those ,\els. I!!!!!! / 26 THE GAZETTE OF JNDIA : EXTRAORDINARY [PA!IT ill-SEC, 4) CHAPTERIJ 3. Procedure for registration.---(!) An applicant desiring to carry on insurance business 111 India shall make a requisiuon for registration application in Fann IRD/\/Rf. (2) /\n applicant, 11 hose n:yULsition f'ur registration application has been accepted by lhc Authorny. shall make an apphcation in Forni lRDNR2 for grant of a ccnilicatc ofregi,-tration. 4. Classes of insurance business for which requisition for registration application may be made.-( I) An applicant shall make a separate requisition for rcg,istrm1011 application under regulation 3 for each dass of business or insurance. \2) The cl:isscs ol' bu,incss of msurance for which requisition for registration applicauon may be made are: (a) Life insurance business consisting of linked business, non-linked business or both; or, (b) general ins11rancc business including health insurance business (or health co,·er). 5. Requisition for Registration Appl.ication.-( l) An applicam shall be el1gibie to apply for requisition referred to in sub-regulation (1) of regulation 3, i I" such appltcam upon reg1sLTat1on will be an Indian insurance company as <letined in ,;ect1on 2(7 A) of the Act: Provided that the appl icant whose.- (i) requisition for rcgisrration application has been rejci.;Lcd by the Authority a1 any time during the preceding five financial years on the date of requis.ition for registration application; or (ii) application for registration has been rejected by the Authority at any time during the preceding five financial years on the date of requisition for registration application; or (iiiJcertilicatc of registration has been cancelled or withdrawn by the Authority; or I!!!!!!! I C (i1• 1 name does not contain the words 'insurance company' or ·ossurance company'; shall not be el igihle to make a requisition for registration application under this regulation. (2)Eve,y requisition !'or registration appl ication shall be accompanied by------ (a) a certified copy or Lhe memorandum of association and articles of association, where the applicant 1s a company and incorporated tmder Companies Act. l 956 ( l of l956); ( b) the name, address and the occupation of the direct◊rs and principal officer; (c) a statement of the class of insurance business proposed to be carried on: (d) a statement indicating the sources that will contribute the share capital required under section 6 of the Act; 6. Furnishing of further information and clarification, etc.--( I) The Authonty may require the applicant, which makes a requisition under regulation 3, to ti.mush further informacion or clarification regarding the matters relevant to consider the requisition for registration application. (2) The applicant referred ro in sub-regulation (I) of Regulation 5, 1r so required. may appear before the Authority through its p1i ncipal officer. 7. Consideration of requisition for registration application.--- The Authority on bein" satisfied thar--- "' (a) the requisition 111 f-orm IRDA/R I is complete in all respec(S and is accompanied by all documents required therein; (b) nll infom1alion given in the fom, IRDA/Rl is correct; (c) the applicanr will cruTy on all funct10ns in respect of the insurance business including management of investments within its own organisation; (d) the applicant submitting requ isition for registration application- (i) is a bona fide applicant for registration under section 3 of the Act; (ii) will be in a position to comply with all the re-quirements for gram of certificate; 27 28 11-IE GAZETTE OF INDIA : EXTRAORDINARY [PART m -SEC. 41 may accept the requisition and direct supply of the application for registration to the &J,-plicant. R. Rejection of requisition for registration application.---{ I) Where the requirements under regulation 7 are not complied with, the Authority may, after giving the applicant a reasonable opportunity of being heard, reject the application. · (2) The order r~1ecting the application under sub-regulation (I) shall be communicated by the Authority within thirty days of such rejection to the applicant in writing stating therein the ground on which the application has been rejected. (3 J An applicant ag6'Tieved by the decision of the Authority under sub- regulation (2) may, within a period of !hirty days from the date of such communication, apply to the Authority for reconsideration of its decision. (4) The Authority shall C()nsider the application made under sub-regulation (3) and communicate its decision. as soon as possible, in writing to the applicant. 9. Action upon rejection of application for requisition.-An applicant, whose requisition for rcgistrnuon application lhas been rejected, may approach the Authority with a fresh request for registration application after a period of two years from the date of rejection. with a new set of promoters and or for a class of insurance business other than the originally proposed one. 0