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General insurers, reinsurers, and brokers must include specific documents and a fee when they apply to open an office in the International Financial Service Centre at GIFT City, Gujarat. Every application requires a prescribed format, a certificate of approval from the appropriate authority, a board resolution, projected business for five years, and evidence of a non-refundable fee. Registered entities must pay an annual fee. Insurers and brokers must not transact direct insurance business from the domestic tariff area through an office in the International Financial Service Centre.
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भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref: IRDA/NL/CIR/MISC/019/01/2016
Date: $28^{\text{th}}$ January, 2016
CIRCULAR
To All the General Insurers, Reinsurers, Brokers
Re: Issues pertaining to opening of offices in IFSC, GIFT City, Gujarat.
1. Background:
The Authority had vide Circular ref: IRDA/NL/GDL/MISC/065/04/2015 dated $6^{\text{th}}$ April, 2015 issued Insurance Regulatory and Development Authority of India (International Financial Service Centre) Guidelines, 2015 that enable Insurers/Reinsurers to open offices in the IFSC, GIFT City, Gujarat.
The Authority, in terms of the powers vested under Insurance Regulatory and Development Authority of India (Regulation of Insurance Business in Special Economic Zone) Rules, 2015 read with Section 18 (2) of the SEZ Act, 2005 AND Section 14 of the Insurance Regulatory and Development Authority Act, 1999 hereby issues the following clarifications:
2. Applications from Indian Insurers/Reinsurers:
Every application for registration from an Insurer/Reinsurer registered with the Authority shall include the following:
Parisharam Bhavan, $3^{\text{rd}}$ Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail : irda@irda.gov.in Web.: www.irda.gov.in
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3. Applications from Brokers:
In order to facilitate conduct of Insurance/Reinsurance business, Brokers registered with the Authority are permitted to open IFSC Insurance Broking Office (IIBO) in the IFSC. Every such application shall include by the following:
4. Annual fee payable by entities registered with the Authority:
The Insurers, Reinsurers and Brokers registered with the Authority and having a registered IIO, IIBO at IFSC shall be required to pay Annual Fee as stipulated in clause 14 of the guidelines mentioned above.
5. Direct DTA business from an IIO, IIBO:
While the clause 11 (1) of the guidelines mentioned above permits Indian Insurers to transact specified Direct Insurance business within the IFSC, such Insurers and Brokers shall refrain from transacting any Direct Insurance business from the Domestic Tariff Area (DTA) from an office being set up in the IFSC.
(Suresh Mathur) Sr. Joint Director.
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FORM IRDAI/SEZ/ Application
APPLICATION BY AN INDIAN BROKER FOR GRANT OF REGISTRATION AS INTERNATIONAL FINANCIAL SERVICE CENTRE INSURANCE BROKING OFFICE (IIBO)
| S.No. | Particulars | Applicant's Response | Remarks |
|---|---|---|---|
| Section A : Company Profile | |||
| 1 | Name of the applicant | ||
| 2 | Address of its registered office | ||
| 3 | Date of incorporation: [DD/MM/YYYY] | ||
| 4 | Registration No. and date of first registration [DD/MM/YYYY] | Copy of the registration certificate/licence | |
| 5 |
Line of reinsurance business currently handled
Provide a copy of the resolution by the applicant's board in support of the commitment to set | Annexure - | |
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| up an IIBO. | |||
| 8 | Name, Address and contact details of the person responsible for the affairs of the proposed IIBO | Provide a certified copy of the board resolution appointing the person responsible for affairs of IIBO | |
| 9 | Regulatory approvals Provide a copy of regulatory approvals for opening of an office in SEZ for conducting insurance business in the SEZ. | Annexure - | |
| 10 | Annual Reports Annual reports for the past 3 years. | Annexure - | |
| 11 | Details of the Office proposed to be opened: |
- (a) Name of the office:
|
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responsibilities. (Proposed):
| |||
| 12 | Details of payment of fee prescribed under the IFSC guidelines | ||
| Section C: IIBO Business Strategy | |||
|---|---|---|---|
| 14 | Market Research and Analysis
The applicant may have undertaken some form of market analysis to ascertain the market potential. The applicant may furnish full description of the research, along with the conclusions reached | Annexure - | |
| 15 | Types of Reinsurance arrangements to be offered The applicant may give detail of the types of reinsurance arrangements that it will offer to the Indian and other markets from the IIBO. | Annexure - | |
| 17 | Information Technology Insurance industry is very much dependent on computer technology. Full description | Annexure - | |
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should be provided for the following :
Different areas of the company require personnel with different skill sets. Some of the special technical skills would require special focus. The company may submit a detailed write-up on its plans to impart technical skills and knowledge locally. | Annexure - | ||
| 20 | Internal Controls The company will need to establish a set of procedures and norms for various activities. The | Annexure - |
