IRDA (Registration of Indian Insurance Companies) Regulations 2000

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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 C C'HAPTERUJ I 0. Application for registration.--{ I) An applicant, whose requisition has been accepted. may make an application in Fonn IRDA/R2 for gral1t of certificate of registration. (2)Every appl ication shall be accompanied by--- (a) documentary proof evidencing the making of deposit required under section 7 of the Act. (b) evidence of havu1g rupees one hundred crore or more paid up equity share capital, in case the application for grant of certificate is for life insurance business or general insurance business; (c) evidence of having rupees two hundred crore or more paid up equity sl1are capital, in case the application for grant of certificate is for re-insurance business; (d) an affidavit by the principal officer and the promoters of the applicant certifying that the requirements of the first proviso to section 6 of the Act to the effect that paidup share capital is adequate after excluding any preliminary expenses incurred in the formation and ·registration of the company and the deposit required to be made under section 7 of the Act have been satisfied; (e) a statement indicating the distinctive numbers of shares issued lo each promoter and shareholder in respect of share capital of the applicant; (t) an affidavit by the prmcipal officer and the promoters of the applicant certifying that the paid up equity capital referred to in sub-clause (b) of clause (7 A) of section 2 of the Act, calculated is in accordance with regulation 11 does not exceed twenty six percent; (g) a certified copy of the published prospectus, if any; (h) a cenifled copy of the standard forms of the insurer and statements of the assured rates. advantages. terms and conditions to be offered m connection with insurance policies together with a certificate by an actuary in case of life insurance business that such rates, advantages, tenns and conditions are workable and sound: (i) a certified copy of the memorandum of understanding entered into between the Indian promoter and the foreign promoter, if any, or amongst the 30 THE GAZETTE OF INDIA ' EXTRAORDINARY promoters as a whole including details of the suppon comfort letters exchanged betv,een the parties: U) the original receipt showing payment of the lee of rupees fifty thousand for a class of bus111ess; (k) a certificate ti·om a practismg chartered accountant or a practising company secretacy cert1 Cying that all the requirements relating to registration foes, share capital. deposits. and other requirements of the Act have been complted with by the applicant: (I) any other information required by the Authority during the processing of the application for registration. 11. Manner of calculation of twenty six per cent. equity capital held by a foreign company.- ( I ) For the purposes of the Act and these Regulations, the calculation of the holding or equity shares by a foreign company either by itself or through its subsidiar·y companies or its nominees (hereafter referred lo as foreign inveswrJ 111 the applicant company. shall be made as under and shall be aggregate of:- ( i) the quantum of paid up equity share capital held by the foreign company either by itself or through its subsidiary companies or nominees in the applicant company; · (ii) the quantum of paid up equity share capital held by other foreign investors, non-resident Indians, overseas corporate bodies and multinational agencies in the applicant company; and (iii) the quanrum represented by that proportion of the paid up equity share capitc!,1 to the total issued equity capital of an Indian promoter company mentioned in sub-clause (i) of clause (g) of regulanon 2 held or controlled by the categmy of persons mentione<l i11 sub-clauses (i) and (ii) of this sub regulation. Explcmalion: For purposes of calculation referred to above, account need not be taken of the holdings of equity in an Indian promoter company held by foreign institutional investors, other than the foreign promoters of the applicant and their subsidiaries and nominees, and Indian mutual funds to the extent the investment of foreign institutional investors and Indian mutual funds are within the approved limits laid 31 down by the Securities and Exchange Board of India under its rules. regulations or guidelines issued from time to time. ( 2) Every insurer who has been granted registration under the Act shall, within 15 days of the end of eve1y quarter, furnish to the Authority a statement mclicating changes cx.ceeding I% of the issued capital in the hold mg or the shares i11 his company and those of the promoter. (3) lmcrprcrat1on : The interpretation of this regulation will be that of the Authority, whose tlec1siun on all issues will be binding on all applicams1insurers and will be final. 12. Consideration of Application.-( I) TI1c Authority shall take imo accowlt for considering the grant of certificate, all marters relating to carrying on the business of insurance by tht' applicant. (2) ln particular and without preJudice to the generality of the foregoing without in any manner affecting its freedom, ,the Authority shall consider the fo llowing matters for gram of certificate Lo the applicant, namely:- (a) lhe record or perfom,ance of each of the promoters in the fields of business/profession they nre engaged in: (ti) the record of performance of the directors and persons in management of the promoters and the applicant: (c) 1he capital srructure of the applicant company: (d) the extcm of obligation to provide life insurance or general insurance policies ro the persons residing 1n the rural sector, workers in the unorganised sector or tn fom1al sector or for economically vulnerable or b::ickward classes of the society and other c.itcgories of persons specified by the Authority; (c) the nature of insurance products: (I) the planned infrastructure of the applicant company, including branches in rural areas. 10 effecnvely carry out the insurance business; (g) the level of actlrnrial and other profes·sionnl expertise within the management of the applicant company; (h) the organisation structure of the applicant to meet the requirements of regulation 7(c). (i) other relevam matters for carrying out the provisions of the Act. (3) The Autl1ority shall give preference in grant of certificate of registration to those applicants who propose to carry on the business of providing health covers to individuals or groups of individuals. I!!!!! I 32 THE GAZETrE OF INDlA · E>CTR.AORDINARY (PAAT Ill-Si;c. 41 13. Rejection of' application for registration.-( I) \Vhere an application for rcg1srra11on 1s not complete m all respects and does not conform to the regulalions or instructions specilied in Form lRDA/R2, and after considering matters rererred 10 m regulauons 12 and 16 and on being satisfied that II 1s not desirable to grant a certJ licate by the Authority, by an order, may n:ject the appltcauon. (2) The order n:jccu ng the application under sub-regulation (I) shall be ,ommun1cated by the I\ uthonty "11hin th1ny days of such re1ection to the applicant in wnung slating therein the ground on which the application has been rc1cctcd. (3) An applicant aggrieved b) the dec1s1on of the Authority under sub- regulation (2) may. ,, 1thm a peno<l of thirty days from the date of such communication, appeal 10 the Central Government in accordance with sub- secuon (2C) of sectwn 3 of the Act. for reconsideration of such decision. (4) rhe decision of the Cenrral Government on such appeal shall be final am! shall not be qucsuonc<l before any Court (5) The fees, referred to in clause (j) of sub-rebrularion (2) of regulation I 0. shall not be refunded. 14. Effect of rejection of application for registration.-An applicant, whose application for reg1srratton has been rejected shall not be entitled 10 a certificate: An applicant may approach the Authomy with a fresh request for registration 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 ongmally proposed one. 15. Manner of payment of fee for registration.- The fee of rupees fifty thousand for each class of busmess for registration shall be remitted by a bank drati issued by any scheduled bank m favour of the Insurance Regulatory and Development Authonr:y payable at New Delhi. 16. Grant of certificate or registration.- rhe Authority, after making such mquiry as 11 deems fit and on being satisfied that- (a) the applicant 1s eligible, and in its opmion, is likely to meet effectively its obligations imposed under the Act: (b) the financlal condition and the general character of management of the applicant are sound: I C 33 tc) Lhe volume c:: busmc,s likely to he availabk 10. and the c;apnal structure and earning prospect, of. t:1e :•pplicant will he adequate: t. d' the mte·cs,s ol tl1e general public will be served 1f the certiiicatc 1:; granted to the apphcam m r .;spt:cl u r the class ot insurance bu~iness specified in the application: and (e) the applicant has co111plied with the provisions of sections 2C. 5. 31 A 32 and 32A has fulfilled :ill the requirements ofthese sections applicable to hlm, may register the applicant as an 1nsur-:r fo1 the class of business for which the appl1canl 1s tounJ su1labk and grant him a certificate in form !RDA,'R3. 17. An ;ippiicant granted a certili..:ale of n:gisttanon under the Regulations ~hall commence msurance busmcss for wh1cti he has been authonsed wnhin 12 months of the date of reg15tratwn. Provided, howe\'er. that 1r the company feels that it will not be ablt: to commence the insurance business wi thm the speci lied period of 12 months, l\ can before the urne limit expires. seek au extension. by a proper written application. to the i\ULhonty. 18. The Authority on receipt of the request referred to in Regulallon 17 w1 II examine it and commu111cate 11s dec1:;ion m wnting either rejecting the request or granting it. 19. Nu extension of t'ime shall be 1,ITanted by the Authority beyond 24 month~ from the date of gr;rnt of registration under Regulation 16. I TH£ GAZETTE OF INDIA · EXTRAORDINARY I P.,.RT Ill S,: 4 I CHAPTER IV 2U. Manner of renewal of certificate. - ( I) An insurer, who has been granted a cerur1cn1c under section J of the Act. shall make an application in Form IROA/R5 t0r the renewal uf the ctrtificate to the Authority before the J 1 ·· 1 day of December each year. and such an application shall be accompamed by evidence llt" me paymclll ut the lee which shall be the higher of.--- ( ,1) Ii I ty thousand rupees for each class of insurance business. and (h) 1111e-fifth of one per cent. of total gross premium wnttcn direct by an 111sun:r 111 lndta dunng the financial year preceding the year in wluch the appltcation Cnr renewal of certificate is required to be m::1.k. rn rupi:.e;; live crnrc~. \\ luchever 1s less; (and rn the case nf :m 111surcr currying on solely re-insurance business 111stead of the total gros~ premium written direct m India. the total prem1Ltr1i 111 respect o! focultative reinsurance accepted oy h11n in India :..h.ill b-: taken mt11 account) · (2) II' the in~urn (ails to apply for the rcncwal or rcg1s1ration before 1lw date spcL I lh:d 111 .,t1h rcgul.iuo11 ( I ). 1111.: A uthorny may accept nn apphcatinn fN r,·1ww,1I of rcu1str:ll11m on n:cc1pt of the Ice payable with the ,1pphco11011 nhmg w1111 ,.n ndd,tto11id li:c hy Wlt) of pcnulty of ten per ci.:111, of the fee payable "11h the applti:atall\ 21. :\lanntr ol' pa~•11wn1 of fot• for rcnewul ol c~•rtll1c11tc.• The fi:c 1i,, 1c11C\\;1l nl n·1 11·1L-.1t,· shnl! ltt· pn1d ltl 11w .1cc11unt n1 J11i;urm1i.:c Rq,:ulntory :md DL·v1.:lt1p111rp11\11th11n1y \\'lilt the Rc~crvc Uunk ol lncliu. 22. h~ur uf d11r1lic11tl• rt•rtl1k11IL•,--TII~ Authm11y may, ,111 ri.:i:e1pt ui" tee 01' 1111w1.·•, It\'<.! \11011,:111d. 1•,sm· u duphrntc ccn1f1c:11c to :m 1ns11rt:r, 11· th~ ,n~urcr 111,1kn, 1111 apriu.-;11i.m Ju tlti; \111hu111y in t;o1111 IRDA/R.J I!!! I [ >ll'T lll-= ,l .I JS ==~ CHAPTER-V PROCf:DllRE FOR ACTlOJ\: INCAS[ or DfFAULT 21 'iuspension of certificate.- Without prejudice to llnY penalty which may hr: 1111poseJ or any at:t1on taken under the provi~ions of the Act. the reg1strauon of an i rn11;in insurance company 1ir 111surcr v. ho -- 1,t) ..:nnducb i cs bus1ncs, m a manner prejudicial to the 111ten:s1s of the p, ,hcyholdcrs: r bl !'ads to t'urn1sh :my infnm1ation as required by the Authority relating to its ,r: :1.11 11 IL<' husrncs,. lt: : ,l,i,~ 1w1 submit pcriod1c:tl returns ns requireu um.kr che' •\cl or hy the C Authonl) . ( d ·, J,w:. n, ,I ,.uupcrntc 111 an) inquiry conducted hy the Authority: C (cl 1:1dulg<'" 111 ,,.,111pulallng the 111sur:rncl! business; r I ) 111Jt1l!!e:; 111 un!:11r trnde practices; !g1 fl1b '" make· 111-.c:,tt,1,·rn m the int'r:.u;LruCture or social sector specified under :.ub-,-ecut111 \I:\) 01 ,ccu,111 ~,D of the ,\er. ,11:1y be ,,uspemh:d ti)r a clas, 11r ,L1sses of insurance busmcss tor such period a~ m:.:: ht: ,rt:ciri,:d l1\' th,· \uthonty by :m urJcr; !'1 m 1dcJ 111,H thl \uthllnty lor r..:asons to be rccortkd rn \Hllmg mav. m case of repeated tkl::iult, ,11 the type mt:nlloned above. impose a penalty ,11 cancellation ,,r ,<:rlili..:ate. 2-1. \lamn•r of making onkr or suspension or cancellation of certificate.- :,.:., ,1rd~r ,11' s,1~pc11'-,l'11 ,,r ,.111~db11011 shall be imposed except after holdrng an cnqi1:r~ 1n :1ccordance wHh thi.: procedure specified 111 these rcgulauons. 25. :\hlnnc1· of holding enquiry before suspen~ion or 1:ancellation.-( I) rm the purpose ur holdtn!! an cnqui r y under r..:gulution 2➔, the t,ulhonty rn:1y :!ppo111t an .. -11qu1ry officer. (2) The enquiry ot'licer shall issue tn the insurer a nutice at tl1e registered olTice or the pr111c1pal place oi'busine:,S ot the insurer. (3) Thc insurer may. " 1rh111 1hirty days frnm the date oi rcceip1 of such notice. fumish to the enquiry 01T1ccr a reply. tog.:ther with copies of documcnt:u1 or o ther evidence relied on by 1t or sought by the Authmity from the 111surer. TiiE GAZETTE 01' INDJA : EXTRAORDiNARY (4) The enquiry officer' shall give a reasonable opportuniry of hearing to the msurer to enable rr to make submissions 111 suppon oi its reply made under sub- rcgulallon (3 ). (5) Before the enquiry officer. the insurer may either appear in person or through any person dul) authorised by the insurer· Provided that no :.iJ,·ocatc ~hall be permuted to represent the insurer at the enquiry: Provided further that where an advocate has been appointed by the Authority as 1he presenting officer under sub-regulation (6), it shall he lawful for the insurer m present its case through an advocate. (6) ff it 1s considered necessary. the enquiry ofricer may ask the Authonty to app11int a pre~enll11f'. officer to r,re,;enL its ca~c:. (7) rhe enquiry officer shall, :1lh:1 takmg mtu a.:courn a ll reh:vam facts am.l submission!> mad<.: hy the insurer, submit a report to the .'\uthoril) and recommend the penalty l1• be ..i11 arJeJ as also the 1ustification of the penalty proposed. 26. Show-cat1sl' notice a uu order.---( I l On receipt of the report from the enquiry officer, lhc 1\ uthonty ~hall consider the same antl 1f considered necessary by it. issue a show-cause 11011cc as to why :1 penalty as it considers appropriate should nor be imposed. (2) fh..: insurer shall, wi1hm •wcnty-(me Jays of the dale QJ'reccipt of the show- <::ause notice. senll a reply 10 1he ,\uthority. (J) The Authority a tier co11s1dcnng the reply to ihe show-cause noucc, 1f received, shall as soon a, pm;sible but not later than lhirty days from the receipt of the reply. if any. pass such ord..:rs as it deems lit. lfno reply 1s fum:shc.d 10 the /\uthority by the insurer w11h111 '!O d:iys of the service of the notice, the Authority can proceed ro dec11k the issue cx-rarte (4) An order passed under <;L1b-regL1iation (3) shall give reasons chert!for including Jusri lica11011 of 1ht: penalty unpo~ed by that order. (5) The Authori1y shall send a copy of the order made under sub-regulation (3) rn the insurer 27. Effect of suspen:-ion or cam·ellatiou of certiticate.-- On and from the dme or suspension or cancellatio11 of thl.! ccr:ifica1e. the insurer shall cease to transact new msurance business: 28. Publication or order.--- The order of the Amhorny l)Jsscd under sub- regulation I 3) of regulation 20, :;hall hc published 111 at least two dally newspapers in the area where the insurer has his principal place of business. !!!! I [•'1'1 ru-~ 4J =~---=- ~ --= ~ ~ ~ =- = CHAPTF.R VII PROVISIONS \f'Pl !CABLE 10 FXISl'INCi IN-;l lRrR'.') 29. Rr:,:istration nl c,i~!ing in\arer,.-· ) ~· .:ry 1ns,,~cr c. • .J)11 ,! 01 111,,ur:111Lc hu~!JlCSS 1n Im.ha hdo1c 1hc commencc::ment or the l11suram:c RC£!l,latory wild [JC\t:lupmcnt 1\t:tr.or·:0 .\ct ••1•"1 ( .. I ut l<J1N) and rcquim,g 1.:g1:,!J':1.ion un,kr chc Act. shall 111,1kl.' an app!t1., ,icn m l·orm ll{ll,1 K2 fnr gru ,t or· ccn1fo::.r1.· ol n;\,!lStmuon. w11h111 three 111ot11hs from tliL' cornmcm:emcnt 111 the Insurance Regu!Jto1y and De\'clopmet11 \uthority . .\ll 1999 /41 o! ! 9991. \2) Evc::ry appltc:iuon shall he :H:comr,:m1ed by--- (ai ongmal ccrutiL:t!e ot n:g1scrat,01:. (b} ,, t:onfimiation th:11 the requ,rc:mem~ c•f ~eclion 7 or thc Act rave be::n n•1. 1 . ( c) c\·iJencc of havm.(.! rupt'e~ o·H.: hundred crorc or more pa1d11p ~hare t·ap1tal. m ~a-;c the appilcanon IN grant . ·t certnkatc of rcg?strauon ,s for hfo msur:mcc business or gt'nc;;,il in:;11r;i, u.:c bus1m:ss; Id) evidence t•r" h:t\'l!g mpl ·, rv.o ht1r !red GNt' or more :1a,dup sh:..r~ c.1p11,1!. in ca~(' 01 an applic·1t1C\11 for µra111 of .-cnilicatc 01· n:g,~tr:iuo·1 fer r':'.-m,•J1-:ncc b;J..·,ncss; (e I an arTidava by 1hc pn11c1p:il ol tic,,r ,,f the ;1ppl1canl cc,tdymg that ltl\: rc:qcrircmc:nts ni sc.:t1on 6 <11 the ,\cc l1avc been con ,hc,1 "i1h: C O) a .:c~111·1cd .:op) of the sr:mo:irJ forms of thi: llhtircr and s1a1cmt:!I11S 11i' thL' a::surecl r~tc~ ath anl:ll',c,-,, l\:m1s ·md C<'nd•t on, t,• h: nlt'-:"eo ,·rn c 1,1'1 w1t11 mstar:ir,,,· pohc,:-,, roge:her 111th ,! rcrtllicatc 1n ,:1bt" ,Jl liti: ir.,11rarn:c uu~rnes, b_. an ai::tuary that su.:h rales. au\ ;uuagcs, lcrms am.! comlllions are ,\, kahk dllU sounti: (gi the ongllwl fL't:etpt sho•.v1ng payrni:nt t•f fet: of ·upces fift) ,h1•usaml for i:ach dass of husmess: ( h) ::my othci info1111<1t1on n:quin:J b) Lht AL1tho1it) durmg che prn1:ess111g o( dw application for rrgis1ra1wn. 13) rhc .\uthorit\ shall rcg1~1er C\'CI") applic:mt. who submits an applicr111on •11 accordance with sub-r.:gulatior ( 2). and gr:im a ci:rt1 ticate in ' inn I !{DJ\ R, ~ I =-=""-"'=T'I.;. . ..,E.;;0.;;AZEITP OF P.-."DIA EXTRAOROI~ .\RY = 10. T r;msitory l'rovbions.--- Every existmg in~urer shall be requm:d to comply w11h Jl! the RegulJlluns rn:iue by the At,thonty from he date of their 110•; fieanon- l'rc·. 1Jed rha' the Regulat1on, made hy the . \uthonty on the following rnli1eu~ vii:- , 1' \..=C:-.HllllS. \ 11 l A~sets, l1ao1ht1cs ano solvency margin; 1111 I Remsu anc..:. '11.i: .11 tbe J.111:e 11( .111 ex.1,u::ig insurer. be complied \\ 1th \\ 1tl11n a pcnod or 1,•.t>I\ l' •11<"t'i'~ irC'ni the ,nmn1cncc1'1t'nt ol those regul,Hions: Prcn1dcd. 110,H\l'', t11c \11, 111il't\ may. nn an application madc 10 11 by a11 C\l,1111g 111surc1. l"r 1 :llld rc:1-.on~. grant u further pen,J<.i llt' tum: lO comply\\ 1th 1IK ,1IWH.' •cgul 111011, ,, JI' a, 1hat th~· llltal t1m" taken h~ an c.\l~lin:! insu1e::r 10 ,lll:1::,h ,., llh rci:::l,1111,11s 111 thc .,r,·as 111enllom:c.l above docs not c\lcnd beyond '\\•:11t\-l<>ur mnnths from 1!1- cbtc(~I llt .:omrn~ncernent oi'1h,;st ·eg 1 .uons. l',,,\llli:d 111:1hcr 111.ii 11hi:··,· :,n i:\1st1ng 1,1sur..-r Joc:s no, n>nfnrrn to the rt· !td,1t1uns '!' !1!i.' ,•rc:.L, m.':nllrn'l'll ah,,·c wilhin the 11mc alkm cc.l 10 him u'1c.lt:r l•1s 1e!c':1l;H11,1, •h,· \uth11nt\ ,hall pro~cc:d :ig:1111,: h1111 for la1lt1r<' 111 comply 111th .ts dlt ~C'L'P' \.1•·1,1,hs1am1lng 1!1i: .t11111t·. nothing prc,cnb lht· t\uthont~ fr,1111 s.:ckrn,; ··(,"11at1,:,• Ir,,., •• 11 ~-~•s1·111.! msu-er on tile: ~uh_1,·..t. ·11en111me<l 111 1he lirst ·•n,11.,n 1,1111,, r1'"t:l,,1wn :md 1-~ui: d1 r..:d1,,n, lo :111 insurer. whcn:1a ne,cs~ary r 'ml! lfil ~ : :,miurr,,r fORM IRDA/RJ (REQUISITION FOR REGISTRATION APPLICATION! f Please set: regul,111cm 5 of Insurance Regulato1y and Development \uthonty (Reg1~trat1011 ol lmk111 Insurance Compamcs) Regulations. 2000] (This form 1s s11ppl1c<l free of cost to the applicants by the lnsuranc.:c Rcgulatol)' and Dcvelopmcm .\urhority. Please fill in the application carefully. Should you require any cl;mticalltllls, pkas<.: wntc co the Authority specifically mcnr1onmg your query llr cali on u~ personally sub_1cct to pnor appointment) I. Name of the apr11cam 2. J\ddre~s; 3. Date of 1n,u1 porat;nn a~ a Company [ DD/MM/YYYYJ 4. Rcg1strat1011 :'\o ( ,~sued hy the Registrar of the Comp:m11.:s) ~. Stall: the cl,t~s,:s ol insurance business for which rcg1srrauon is sought· (1 Amount 411 ,\u1!1t1n~cd cap11:il & Face value of shares .ind rhe1r number~. 7 Amo um u I i'a1d 11p l '.1pllal & l\ timht·r or e4ui Ly shares: 8, Classi ticatrnn 111' Shan:s 1J. Vnti11g Rights tll\'..at·h cl:.i~~ nf 'ihard1older~ I0,lk1a1ls oi'~h:1reholdcrs: ll'lcasc l!ll'e full namt·. address, pt·rcenwgc ofholdrnfl 1n lhc 1ia1d 11p l.':tpnal or till' 111s11rcr Occupatmn ()11:ihli<.'.ilion~ and 1-.>.pt•ril.'fl<.'c, 1\11111hcr ol ~1ia1t·., hdd und l'ercc111agc cit' share capilal tn tin: co111pa11y I l'lc:aw a1111cl1 ,1•pnra1i: sliects i r 11c:ccss11ry. I ktolis of' pl'r~ons l1oldi11g mnrc 111:111 I ''Ii, of lilt• is~11cd 1:ap11,d nl 1h1: 11pplicnnt 1111d prnmolcrn m, lo h, ~IVl.'11 in scp:1fl1IL' Sl:tll'lllt'lllS, I 1·11 '\11111, I J.1 !. 111 ~ \ ,ldt '\ 111! - 1J1111J1f1r111111 I ,rw11,•11l' •11 ,I !111tldk hu 11, I 1, rt111Ul" " " I f;.;(°1ii 111 I lk111mh 1111111111:'I , ... I .1, , .. I I 111101 j J .,_ - 1·11 -="ri: "1 I; I -,1 T T + \11 .. 1lllUl,.illo If I \lltllllt IIVhl• I 11h,111•• w1,I I J)l'h. \'lll41J.1.' n! lulid -=-.--=- l(IJ .. - =r 1 ~•:,l,11r _I-= \Jme: l f the prnmoter •~ :1 urn1pany nr ,1 boJy ..:orporme registered 111 India or m a foreign cour.t~. !!,l''I.' the n;imc or the -.:ompany nr body --:orpm:nc in column (I). the coumry 01 111cnrpnra11nn and the <late of' registration in column (2), mention the an:a!i ot' operauon ot the company in col.(5 ). lea, lllg the C()iumns -+ and c, hlank: panindars 111t.!1,·ating the t.:011ntries of operation. nMure of I • '111E GAZETTE! 01' INDIA : EXTRAORO!NARY IP= Ill-SE,·~, -==- ~ -=- hus111es~, cnclosmg ,t.ikmcnt~ ,>f account~ of the company or body corporate for ,'1e l:is! 5 ye::rs :ire lo re gl\cn. if there are more than one promoter the mtom1:lllon m:iy i,; 1·1<.Jly I·c tu rm shed Ill such a manner as to ind1c.:ite clearly the m1er-rclat1onsh1p, it ,Hl). of p.1rt1el>. I I' a pro, 101er 1s .; nonunet of another. l1eta1ls of ti.l' pnm:1µ .. I in 11,e ah11, e ar:.:as arc to be given. Adequate care may h: Lakcn 111 i°l1rnH;l1 full .rnd complc1e tnformanon truthfull:r. Any ·11hrcpr:.:,entJuon llltmd l:it.:r \\ 111 lc.:d tu disqualilkation of the applicant. its promoter, and othL'f\ L'onm:rIed theri:Lo. JI the :01:11 r~,jillrl'J ( ap11al has 1101 ~ .:t b.:..:n issued. please provide 1nforma11<1n on Lhe c:xntcied s11hs..:111H1011:, to shares and whether the potent•al shareholders have gl\tn aP\ tommll r::n.or assur:rncc 10 suhscnbe to the c:ip1tal. 11 ·lp1•lica111 P 1, ,c..:11or. ~:1ould ~ct out the hackgroun<l mformauon. ~ 1\1,n1111g i:1lt1n11;11 1111 ,hould be 111cluded • P:1rtH.:ulars of the p:inn.:1s 111 the w1nt ,cnturc (cg. company name address. 11a111c~ nl Jncunrs. ctcJ. • (. v~stitu•i.m of ti:~ 1"'1'111,1ter companil'S details of shareholders holding m l' 0.cess o! 1 '¼, ul tht' paid up .:ap1t:d. • '\ature or b11,,m1:ss. y1:ar,- 111 b1 ,mes;. of promoter companies. • Pa;..I record ol' reg11l,H01) ntrrv..:nt1ons'restnct1ve d1rec11ons m rc;.pcct of promote1 .;0111p:m1c~. • ·1 he apphlilllt · ,- rc:1~01 s 1<11 crtcnrg the msurancc market. • hnarn.:wl statc111cnts lur till la\t tivl, y,.;i.Jrs. Strengths of the partners. 0 l11d1c.,t,1>1 ,,r dti !, grl'L '" c,,1111'11tmc"lt to , 1c Indian rnarkei place displayed hy till' apphci.1111. • lilt.; \grcc1m:nt amon~ iht' sh,ireh\llders promottng the cornpai1). • I he ,1hlif,ltlons un,k·riak 1 . tlk • ire ~n promoters. • 1'!1c ohl1g:,tmn~ ,)Tth, anplirnn: curnpanv to the foreign promoters. • Snuru:~ for 1nc.:1111g th~ ,1 1t1:il a1°d f11turt: capnal ne.::ds. • I C,N:~ ()j ,01•-.:orp1,ratc promoter~. 111 form::ition on the above l111cs. su, tably nmdllicd mav he ,?l\l'n. Pr11111011 ·s f \'cparttrl ,1L1:cmc1111 /or lnc/1011 promo1ers and Ji1reig11 promoterv. 1/' Details of prom,HL'r, I Pka~c gi,·c lull name. address. ncrccntagc of holding 111 1 he paid 11p t'i.lpHal. ( h:cupattun. Qua Ii Ii cations and Experience. Number and · Pcr..:cnt;1gc of :-hare cap11al n th.: company] -r;;;r,,1;;-;=-- ~, 1~,1 "'\ti,1,,.~ .~ ,.,1-1,1."",,-1,.;;.-:-,,,,-,n,:-, ..c.,., 7t'""• ,,.cc.,-,c:.,-:-, -,-, 1"'•.,,::--_.,,:n,-, - ~-~'"'<,-, -.,,-, -,.,.,,.,-:.,,-, .,-1 "M""<ma=,k,->-, \lJI J.Ji.l t, 1 , 1' \j"" ~ l Uff~1;,a:1011 I 1\.·11h"I-' nth'-l'il ,un 11, .. " I ,h:!.re,i a~d r{·,,.\'.',tW.,:<" ,., I ---------~-----l'-•-111-:1111_d_o,_,n,_-'-- I!!!!! I -l I . ,11 t '2 1.'-• '" I '~I lbl ,,, l>I ► I Mt lM:- I I I I ' ' I j I I I I j· the promoter 1s a company or a body corporate registered 111 India or in a foreign country. give the name or the company or body corporate in column (I). furnish r.he date of registration in column (2). mention the areas of operation of the company in col. (5). lt:avmg the columns 4 and 6 blank. The particu.lars of persons nommarcd hy such prori1oter in the above pro Jonna: and particulars mdic:uing the countrie~ of operation. nature of business enclosing statements of accounts of thr company or body corporate for the last 5 years should also be provided. 11. The .·lpplic,1111 Co111p1111y This section .should provide the key aspec1s of the Company. This will cover the following: • Name of the applicam Company • Date or Reg1stra11on.[DOiMfvl YYYYJ (As per Companies Aci. 1956) • Rcgistrntion Number: • Registered Office Address: • Head Office Address: • Address for Cnmmunications (state the name of the Company Secretary. telephone numbers. fo>. numbers. mobile number, e-mail address and such other details: • Key aspects of the promoters (e.g. respective shareholdings. roles and responsibilittes. lilfectorsh1ps. mtcr-rclationships et.). • Paniculars of the Bo::ird of Directors: • States ot operation. Branch locauons. (Proposed) • Company's lvlissinn S 1:11em~n1. • Senior management (key persons) and allocation ofresponsibilities.(Proposed) • Organizational structure. Reporting relationships. • Allocation of respons1hi Ii ties between the head office and the operational units. [Enclose four certified copies of Memorandum and Articles of Association of the registered company] 1985 Gl/20()(l-6 I 42 THE GAZETTE OF INDlA · EXTRAORDINARY f P,\RT IU-Ssc. 4} 13. Capitai structure o Arpount of Authorised capital & No. of Shares: ~ Classification of Shares o Amount of Issued Capital & No. of Shares: o Amount of Paid up Capnal & No. of Shares: ::i Voting Rights attached to each class of Shares o Nominal/Face value of Each Equity Share/ Other Share: 14. Directors and key persons: For each director and key Directo1\~ and key persons. furnish the particulars in the proforma g,vcn bdow:• D Name (and any previous narm:.s> u Private nnd Business Addr<-!-~ 11ncludmg any oth<!r pnvaie addresses within the las1 15 years}. current Telephone. Fax and E-mail Addresses: D Date and Place of B1r1h O NauooJhty (anti any previous Nationality) D Passp-0r1 I ldcnUtv ('""j ... Numb~r --Dar,: nod Place oflssue. ••Dale of cxp,ry •-lssu~ng Au!.horny: u Name an,I 1\dd«ss or Dank: -Account '.\wnbcrs and Type of Account • -Detmls of any loans or guarantee:; issued 10 or on behalf of the company in which lhe Direc:1ors and Xcy persons have a managcmem or shareholding 1meresr :J Family Status =i D.:taJls :md l>ctl~~ of Acaden111; (./uallfic::n1on: O Details and Dates of P1ofessional Qualification: u Dcscripnon uf 1hc prospective position uncludmg re1Sp01ls1bilitics) :111.J proposi:<l dat~ ('If coouncnccment: 1J \Vorking Exsx:m:ncc . . Exist mg and Previous Employers (cover mg last 15 years) ~ Dct.3.tls of whether tbe Directors uncl key persons o.nd .' or (heir .F.mploytrs h~wc been formally supc1v1sed or regulated -Nature of Ernpioycr·s nu.'imcss .. Des1f_ina11on: ( mclu<lmg_ duties and responsibi11ttc.s) -l>a1e of Appomtn,¢nt -l>:nc ot' Reslgmu1on/Depal'turc ~ Det:.111s vi Other Uusmess 1nh!ries1s in 1he la::.t 15 yea1S where the Di1cctors- and key persons have been o wc1rK1ng_ sho.rehokJcr. d~1 ecrM or rt'\ntro Iler ..J Rclilttonslup wuh ch~ ( ·umpany ur 1.:-fa1c:d C◊mpc101es 01 other third partits:-- ·Dc.·iai1s 0 1 shareholding~ nr voting. powers mt.be cQmpany. or rela1cd Comp.iru~s or tl:urd parties: Details uf aay Busini:£~ n:lat1(111sh1ps with 1he company 01 related t 'ornpames or thtrd panies· ·Details of any Busme)s tt!li1lJOnsh1p;S hctween rhe D1rectors anJ key persons· fomier tmploycrs nud the company 0 1 H.:fatt·d lompamcs or durd parnes: 0 Full deta1~s on the 1)1rccwrs' .u1d key person,;' n::pm.:itton aud cb--,m1cter-- -wh<.:'thcr the apphcant ha~ c .. •c1 hcc.n declorcd bankrupt: -any conv1c11ons of an) 1..1Jlcnce 11wolv1ng fraud or other d1shon~sty: -any thsquahfic;.1110~ oflhc- D::ecturs Jn<l key persons from acung .ii:; a thrcctor or m the management pf any company or orgamsauon: ~ I C '!R11<!;;~:~ -whether the Director,; and key persons have ever been refused (or had revoked) a licence or outhorisation to carry on any rcgulotcd linancial ibusmess: iJ Any censure or dimplinarv action mi1ia1ed by any governmcnl, regulatory or professional body; .J Any d1.snussals from oflicc or employment, subJti.,1.ion to disc1plu:.:uy proceedmg.s by the Direcrors' .and key pt:rsons employ<.~• or been refused entry to any profrssion or occupauon; .J Anv lmga11ou ,, 1u'l wluch the 01n:c<or.s and key persons have l>ee.o uwolved over lite last 5 years: O Whed1t>r .my .govc,r.memaL 1rgutatory or profession:il body has ewer mvesugatcd any 1:rnploycr, n •mp.:iny 01 tng~rusamm wuh which the Directors and key persous have been ussoc1;Hed a.~ a director, ;.;nicer, m;;ma~cro1 :-.h,1rcho!dcr. '-1 Wbc1..hcr any \.ompany 0 1 0 1 ~amsJl.lon wnh wh,ch the Dlrcctors and key persons were:: ;a.ssocr.ned os a J1rectt11. officer. mJnag'-!r. :,hareholder or contro lier has evc-r been wound up, gone mu) rt:cc1vt'rSh1p or lCilscd rr:uhn~ cuhn wh1h.1 1hc Directors and key persons was assoC1atcd with II or wuhm one year JI h:r tht Ducci ors and kt•y pcr.-ons so ce,t!tt:d co be ass~c,ared, 43 ln the Remarks c<>lumn. plt:asc mention whether any director is an agent, broker, intermediary, director or employee of any other insurnnce company (or rcinsurer) in India or in any foreign country or director of any other company in Lndia or in any lore15'11 cm:ntry For these purposes. ·'Key persons" will mclude the Chief Executive. Chief Marketing Officer. Appointed ,\clllary. Chief Investment Officer, Chief of Internal Audit and Ch1efFinanee Of'licer 15. /;):tenial Awliwrs:(Prt1{1ose,I) 1 1 ull 'J.1mc: iblc ,\d;,h,;::.s \\ 1111 I fosl,1ntdrllc ut I d.._•phon<" ,,;111!l;1111cJ B111!, ':,,\ I.,., hie "' (.q)CPCfltl' in I .,t I lI'IJ "' l\o \\I t.'quuy j l(c.marks \1Jporntmc ,1ud1t111~ :1ppo.rntmcn1 (\1Htng fl.l!hlS) 11 .-n;:;rJ(l(C sh:.H,·s ,,nd ,.... I Ill.Ill -.'.\Hlll',lfl,C~ ,,ercen1,1gc of 10~! ho!Jmg. '" ;hr :.ipphc.inl cump:.1n,, ➔I t>) (6) 1 17) (81 I - J I I - -- lfaud11ors :ire~ lirn1. ~l:ltl' the 11:11111,; oi'the iirm in Col ( l ). its date orreg1srratrnn in Col (2) Note: In cho<•l~111g <:;. 1e1 nal statutory auditors, 1hc :1pphcant may be guided by Lhe Reg.ulalH.m~ for l'rqi:ira1io11 ol 1-inancial Statements and AuJitor~ R,:pon of ln~urancc ( 'omp,inics. 111orc pa1111:ularly those dealing with appo1ntmen1 ol' auditors. 16. Business w he 1ra11.w1c:1ei/: ')escnhl' :he insurancl' husinl'~:> lo ht> 1ransactcd. 17. Where 111 1h1: l'Ountry dn· you wish to c:11-ry on hl/X(',\j (a) Regions: ;_ North ·.:i South : East msurancc business? (lit.:k 1/1(• West Central I!!!!!! I 44 THE GAZETTE OF lNDIA EXTRAORDINARY [PAKT m-SEc. 4] (b) Metropolitan cities: 1 Mumbai r Chennai r1 Delhi 11 Calcutta (c) Concentration: : Li Rural 17 Urban [180th Rural & Urban 18. Distributivn Channels: IJirect _ Tied Agents LJ Brokers/lntermed1aries ' Others 19. Fi11tmcial Projections (Bot!, for Life and ge11eral in:mra11ce - depending m1 the class applietlfor registration) .A. t.kscnption of the model used for timmc1al prQje..:tions should be provided, based on :1ssumpri,ms, for a penod or:: years. for each year fi-om 1he stan. These ,houlJ sc::t 1,u1 the i<)ilow1ng • Si7<· r,f s;ile~ force. " Amount or :,ales. • Size ol sales support and administrative staff. • Premium incom..:. • lnvcsm1cn1 income " C\,_n,missions an,! miler snles rclmed expenses. • Expense, or a,lmm1sLra1ion. • I ncomc tax anJ other taxes. • '>w1u1nry n:s~r, cs • Required solvency rn;:irgins. e Prnli I :ind loss accoums and balance sheets. o First. year :md rene11 al cxpcnsc ratios. • C:1pital neeJs.-lndian and Foreign • Hrcak-evcn penm.b and the R-:t11m on Capital. • Sharchnl<il'r d1v1dcnds: lndia:1 and Foreign. " P()licyholtlcr surplu~es and bonus declarations nu~ sccuon ~houlti :ibu d1~cus,, th, mannc:r 111 which the furure capital needs wil l he met. 2/J . .\'('11sitivi1y -1 ualysis ( /,ffe) n,c Hnalysis set ou1 111 para I C) above wil l be based on a base scenario and a few allentalc ,,c\:nanns. :-,1;11siuvny analys:s based on "Optimistic" and '·Pessimistic" assumption:, should ,dso b..: mcl11ded. ll·iesi; will relate to assumptions such as: o Si1t: n1·~alcs r,,rcc. • Volume of sale~. " 1'\ ,·cral!.e :;1zc ul ~ale. • Level~ ol 11101 ial11y, morh1dity. poln:y tenrnnations. • i\dministrativc expenses (including mtlation). I • f-uture 111ves1mcnt comllllons. A discussion on lhc manner 111 which the outcome of the pessm11stic scenarios will be hamllcJ shou!J be mclt1clcd. ]I.Rural Busi11e.H Legislation rcqum:,; til;it J specified percentage of the new business should be undertaken 111 the rural 01 ·mc1al sector. The manner in which this. requirement will he fulfilled should bt' tks~ribcd. For the purpose of this section, please see the relevant regulauons cov.:ring this area. 22. Oblipation.~ in 11norpa11i.,i:d si:ctor and backward classes In adJititm, insurers ~hall L11schargc obligations m respect of unorganised sector to cover risks nf CCLll101111Cally vulnerable sections of rhe society and backward classes. For rhe purposi; ol this section, please see the relevant rcgula1ions covering this area. , The manner 111 which these n:qwrements arc proposed 10 be mer should be lkscnbccl 111 detail. 13.Purticuiar.~ <!/ l'rel'inus Application: Has the applicant ever applied for l1L:cnst· 1n lnuia or m11~1dc India'! lfso. give p.irticul.1rs. 24.Cr111d11.~lo11 In conclwuon. the report should discuss the vinb:lity of • 1,c npcrnt1011~. Any ~pccwl JSMICS or conci:ms shm1ld nlNo be indicated. C1•rt(fkallon ' , I. tlw u11ucr,1p1wd, ~ol1c11111iy dcclnre thtll !ht: li1crn ltivcn ln this 11pph~m1un rnnn ,111 lwhulf or the .i\p1,l1cn111 ('0111puny. urc mm und th:1r thr pro1rc.tlonti 11ml i;s11nH\ll11i!>i tit\' ha~rd ,1III li!ilM1ilahle ,1Hs11111p!Hlllti, Onie: I!!!!!!! I 46 THE GAZETTE OF 11'-<'D!A. EXTRAORDINARY (P-J<r Ill-Sf• ~I -======= FORIVI IRDA/R2 APPLICA TION FOR REGISTRATIOI\/ ! Please see regu!:111011 IO ur Insurance Regulatory :md Dcvelopmenl Autltunty (Reg1strannn c,l Indian lnsuranci.: Companies) Regulations, 20/!(Jl (This form 1s supplied free or Ct>St 1,1 1he applicants hy the fn~urancc R ... gu l"wr} and Development r\uthority. Please fill in the upplicauon carcfolly. Should ynu require anv clantkatin11s. pka~<' wnl<' io 1he Authority spi:i.:ificall, men11011111;1 your query or ca!l on us personal I\ ,t:l~1ec1 to prior appoilllmenl) I. c;eogrnphic Spread: (,it-c Lht" addresses or the admini~Lralive offices 111 cac-h State aml U111on Ternmry 111 India. overseas, and also in Rural Arca~ 11·ith the name of person in c:har[!c 01· 1 he office. [if the apphcanr has not decided. he might give tl1e prnpo,ed number m1d locauons of administrative offices in each Srnte and Union Temtory 111 India, overseas. and also in Rural Areas] l. /1;/arket Researl'/1 anti A11a~i•sis The company may h:n e undertaken some fom1 of market analysis to ascertain the market potennal. consumer needs. target market product poten1ial. ~·re. r in rarti.;ul;,r hea!1J1 rnsurance segment). Full dcscnp11011 of the research, along with the con.;lusinns rt:a.:hed. 3. Products 10 be Sold Based on the marker research and analyse:. undertaken. the parmers would have decided upon the products to be marl--ctc>d •• individual or group 111sur.1net!. !'ht: description should int.dude the followrng: • Descnpnon of rite product ti::aturcs, • f'he 1:1rget markers where the products will be sold. • Specificauon ur the names or 1hc products in !:fe 1gencrnl msu~~cc, linkc<l!nt.>n-link,:u. health 111~!1r;mrc. 4. Distribution This scctio11 sh,,ulu dt:scnbt: how the products wil l be or are proposed to be thstributed. Tl1is \llould .::1 1,et the follcl'.ving· • The channels ot d1smbuuon to be used. I\ ith an indication on the rela111·e degree;, of i inpon:mce pl,v:ed on each oi Lhe channels. • The d1stnbu11<111 11,:t\1-ork thai 11 iii he set up 111 the market place. • Any ltmi lat 1ur.s ,m ,hi.: products to be sold by any of the channels. • Remuneration to he p:11d to each channel of distribution. I 5. Sales Promotion The approach to be used for advertisement and sales promotion, e.g. the media to be uscJ, frequcnq, etc. C'opie!:> of sales material. literature advertising the product. if an:,. shc,ukl be provided. 6, Undenvriti11g This section should tlescribe the approach used for underwriting of proposals: the :trrangcmenrs made for medical antl other reports. etc. Please aJso state thc nature of support to be provided in underwrning and m :rammg oi unuerwnters by the foreign promoters. 7. !11,•,isrme11ts Each •:onipany \\ i!I ha1e estabiislled 1b mvesrmem philosophy that will be ;-oprop:i:He wr the produus n intends 10 marker. ll11s should be described. Other in!.11111;11in11 ,hould rn.:lude the investment persom1el. inn:stmcnt adviser 1 :f ,1uts,m1-ccd i. 1,,1.allon of the mvestmenL operations, inve~tmcm brokers to be used. ere. Rc;!tilaLt\l ,s r::gardmg lnvcstmem. V.aluatJon', Exposure - Prudential - Prm is,nnmg Norms- Li Ii: & Non Life issued by the Authoncy may be taken 111to 1c..:ounr. 8. lnf()rmati<>Jt Ted1110/ogy lnsw·an,e indu~tl) 1~ very much tlependenr on computer technology. Full description shoul<l h.: prov1tled for the loll:iwing: • fhe d;lkrent areas when: computer systems will be employed. o 'Nhethcr 11Jc sys1c1lls w111 be- bought off the shelf ( wllh some castomiza!Lon), developed locally or rmponed into India by the foreign promoter (with some custo1rnzauo11 ). • The degree to wlm:h lhc systems will be used for policyholder servicing. • The degree of interconnecrivity of the S)",lems. • A descnption of how the 1/T systems will be u~ed to develop the required Management In forrnation Systems. • Extent of procedures and operations which will remain ~ianual. 9. Customer Sen1it.:e Customer service could he provided either centrally through the head onice or decenLraltzed to the branch offices/operational units. The degree to whith customer service is planned to be decentralized to the branch offices shou Id be described The service standartls planned lo be introuw.:etl for the various aspects of customer service shou Id be described. Any plan to introduce "cnll-centres" or customized grievance selllement macbmery may be indicated. Mention the time schedule for various types of service offered by the Company. 47 I!!!!!!! I 48 T:tffi GAZETTE OF !NOIA: ~~ORD;;;;;IN,;,;;,;AR;,;,Y~===~[P.;,;AR~r~ffi~,,;;S;;;;P.C~. ad4] I0.Rete11tio11 limits a11d Reinsurance The nature of re111surancc arrangements should be described fully, givmg the l'ollowing details: • fhc nmne(s) of rein~•Jrer(s). • The basis of reinsurance. • Terms of reinsurance. The manner in which the retention limit(s) have been esrablished should be discussed. I I.Recruitment a11d Training Differem areas of the <:nmpany require personnel with different skill sets. These personnel will include agents. sales supervisors, branch managers, admimstrat1ve staff for various departments. etc. Sume of the departments will require special technical skills (e.g. underwri1111g. actuarial, accounnng, sales, informauon technology, etc.). rh1s secuon should !-et out the following informal!on for each or the categories: • Desirable skill sets. • Sources Cor recruitmem. • Approach lo be L1sed f1.ir trammg-111 house !(iutsource. I 2. l11ter11al Co11trol.1 The company will need to establish a set of procedt.:res and norms for various activities, The manner in which these will be momlored should be described. These activn1cs wi 11 relate 10 underwriting and policy issue. customer service, 1r11•cst111c11ts. a<.:..:ounung, nc1\ produt;\ pricing. computation of reserves and Required Solvency Margins. regulatory ct,mpliance, claim processing and ~eukmclll pwccdurcs, etc. 13. Expenses of Admi11isrrmio11 1.,1c. In :i1-r1vmg at the premium rates. the Appointed Acruary will need to build the estinwtcd expense lcrels into the premillm calculahons. The manner m which th<' <'Xpcnses 01 ad111111istrution have been estimated and converted into average !'actor~ ,h<>ulJ Ii<· tk:~1:1 i!icd Tht:se expenses will have lo be distinguished bc:twccn firq year and rcnc1\al. lix<:d and variable. All rwerhead expenses will .il,n have t<• be: covcr..:d. <,eneral: I he propo-...:s expensc.:s as a per cent. of premium at levels of operat10nal offices and each k\ cl of supervisory offices and head office. ['ll'l lli-= 4J 14. New Product Pricing Life: TI,e financial projections will incorporate the sale of planned products. A description or these products to the extent possible should be provided. This should include the following: • The product features, such as coverage periods, premium levels, non-forfeiture values, loan provisions, etc. • Distribution drnnncls to he used. • Commission scale~. " A veragc pol icy s11e. • Reserving method used. • The levels of the various parameters built into the computations. These will relate to mortality. policy terminations, expenses. mrerest and any other parameters that may be relevant for the product. The values of these parameters will ha1c 10 be speci!icd at two levels~ at the Expected level and at a level inclusive of the Margins for Adverse Deviations. The justifications for both levels should be provided. o Profitability cntena used m product pricing. General: 49 In re~pe1.:t 01· produi.:ts not governed by market tanffs, please md1cate hmv the , products will be pnced. the data base which will be u~cd to determine premium r, bases and the term, and uinditions, the statistical system which will be e~tahlishcJ to r<:Vtl·\\' adequacy of rates. I 5. J,(/'ormati/111 /'11/i(r: i'vknuon the Company's policy regarding 1nsuram:e awarene,~ 111 th~· public. 16. Premium Rates: Enclose the Company's Premium Tabks for th<: products al()t1g with rebates, i I' any. offered C erri/icacio11 I. the under,1gncd, soli.:mnly declare that the facts given m this application fonn on bellal I' of the Applicant Company. are true and that the projections :md estm1atrnn~ an: ba:::ed on reasonable assumptmns. Place Date: Signature of the Authorised Person (with Seal) I!!!!!!! I so TiiE GAZETTE OF INDIA : EXTRAORDINARY [P AAT Iii-SEC. 4) FORM JRDA/R3 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (Seal of the Au tbority) CERTIFICATE OF REGISTRATION Registration Number. __ _ This is to certify that (Name of Insurer and his address> has this dav been registered in accordance with the provisions of sub-section (2Al of section 3 of the Insurance Act, 1938 (IV of 1938) to transact the classes of business specified in the Schedule below. Given under the seal of the Authority at New Delhi this _ ____ day of _ __ _ two thousand and - ----------- INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY schedule Classes of business which may be transactect:-- 1 .. _ _ ___________ _ 2. _____________ _ 3. --------- ----- 4. -------------- I C ...... I.... FOR!\.I IRDA/R4 ISSUE OF DUPL{CATE CERTfFJCATE OF REGISTRATION. An insurer shall apply 111 1hc following format with the documcms specified herein: To Insurance Regulatory and Dcvclopmcm AutJ1oriry. New Delhi .Application for issue of duplicate certificate ofregisrration. We request you to issue a duplicate certificate of reg1strat1on for which we give below the following details: l. Name or Insurer: 2. Rcgistrat1on I\ umber: l. Date ofC:enitkate of Registration. 2. How original ccniticatc has been lost. destroyed or mutilated? 3. Particulars of remittance of fee. Place Date: Yours truly, Signature of the principal officer. (Name of the principal Officer) (Seal) Notes: 1. Enclose the original copy of the resolution of the board for the issue of duplicate cenificate. in duphcate. 2. Enclose a DD for Rupees five thousand drawn in favour of Insurance Regulatory and Development Authority payable at the place of head office of thr Authority. 51 ~ I 52 TFlE GAZETTE OF !NDIA : EXTRAORDINARY FORM IRDA/R5 INSURANCE REGULATORY ANO DEVELOPMENT AUTHORITY CERT/FICA TE OF RENEWAL OF REGISTRATION Registration Number: Date of Renewal of Registration: The certificate of registration of !Name of 1nsurerl Is hereby renewed under section 3A of the Insurance O Act, 1938, for the year to Issued at New Deihl on (Seal Of the AUtt,orlty,) day Of 2000. (Authorised Signatory) N RANOACHARY, Chnif!Jllr•on !No AOVT,•l/~/l;~ly/161/10001 Prin(«i by lhc Ml!IUl.gcr. Govt. oi' lndi3 rrcu. Rint; Ro:td. M11y,3Jrun. Sew DcUli-110-06-1 a.nd i'ubh11hedbythc Contrcil:CrofPubt,ca~, Ddhi,lJOO~.:t _ ;ooo I!!!!!!! I