IRDA Insurance Company License in West Bengal
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IRDA Insurance Company License
The insurance business in India is governed by the Indian Insurance Regulatory and Development Authority (IRDA), set up under the Insurance Regulatory and Development Authority Act 1999. The primary functions of the IRDA are to supervise the orderly growth, stability and protection of the insurance consumer. To get IRDA Insurance Company License, the entities must fulfil some conditions and complete the IRDA/R1 form. An applicant is subject to certain restrictions, an arduous process that serves to preserve the insurance industry, its stability and solvency. These measures help limit the possibility of only companies capable of offering insurance services in the country.
The insurance industry falls under three categories: life insurance, non-life insurance, and reinsurance. At the same time, life insurance concentrates on events that may include but are not limited to death, disability, retirement pension, and other plans for the policyholder's dependents or family. It is mainly associated with health, property, motor vehicles, and travel, which are completely different risk hazards. In contrast, reinsurance helps ensure that insurance companies are capable of handling each of these kinds of risks due to the sharing of risks. Insurance companies and insurance immediately need licensing and registration through the accommodation provided by the Indian Insurance Regulatory Authority (IRDA) in its Registration of Indian Insurance Companies (Seventh Amendment) Regulation, 2016, in order to maintain solidity and reliable standards for entry to the market and operation.
a) Basically, it is any company that has been registered and accredited by the Insurance Regulatory and Development Authority of India (IRDAI).
b) Only those entities of Limited Liability Partnership (LLP) registered under the LLP Act of 2008.
c) Any insurer that was doing business before the Act's underlying applicable came into force, provided that the foreign company cannot own more than 26% of the paid-up capital of the insurer.
The registered name of the LLP must include the words "insurance marketing firm".
a) For an insurance business: The minimum capital required is ₹100 crores.
b) For a reinsurance business: The minimum capital required is ₹200 crores.
a) The applicant must ensure that no prior application for starting an insurance business has been rejected within the last five years.
b) The IRDAI certificate must not have been previously cancelled or revoked.
c) The business name must contain the words "insurance company".
If the equity investment involves a foreign company or Non-Resident Indian (NRI), the foreign entity may hold a maximum of 26% of the total equity.
Banking companies wishing to enter the insurance business must first obtain permission from the Reserve Bank of India (RBI).
a) Equity capital of ₹100 crores for an insurance business.
b) Equity capital of ₹200 crores for a reinsurance business.
a) Names and addresses of the directors.
b) Qualifications of the directors.
a) A certified copy of the Prospectus.
b) A statement detailing the distinctive numbers of shares allocated to each promoter and shareholder concerning the applicant's share capital.
c) A certified copy of the standard forms utilized by the insurer, along with statements regarding the assured rates, benefits, terms, and conditions associated with the insurance policies.
d) For life insurance businesses, a certificate from an actuary confirming that the rates, benefits, terms, and conditions are viable and sound.
a) The original receipt shows the payment of a fee of fifty thousand rupees for the designated class of business.
b) A certificate from a practising chartered accountant or a practising company secretary confirming that the applicant has complied with all requirements related to registration fees, share capital, deposits, and other provisions of the Act.
Any supplementary information requested by the authority during the application processing for registration.
a) The applicant submits the IRDA/R1 form to the Insurance Regulatory and Development Authority (IRDA) to initiate the registration process.
b) The applicant must be a public limited company as per the Companies Act.
c) Separate registration is required for life insurance and general insurance businesses.
d) Required documents include a Memorandum of Association, directors' details, declaration of intended insurance business, and sources of share capital.
a) Upon acceptance of the IRDA/R1 application, the IRDA/R2 form is issued to the applicant so that the applicant can proceed with further registration.
b) The IRDA/R2 application must include proof of deposit, evidence of minimum paid-up equity capital (₹100 crores for insurance, ₹200 crores for reinsurance), affidavits, Prospectus, standard policy forms, and other supporting documents.
c) A fee of ₹50,000 per class of business must be paid.
a) Once the IRDA verifies and approves the application, it issues the IRDA/R3 certificate, allowing the applicant to start insurance operations within a 12-month period.
b) If the application is deemed unsatisfactory, it will be rejected, and the applicant will receive a notification outlining the reasons for the rejection within 30 days.
c) The applicant has the right to appeal the rejection to the Securities Appellate Tribunal within 30 days of receiving the rejection notice.
d) If the applicant cannot begin operations within the 12-month timeframe, they must request an extension from the IRDA before the initial period ends.
The Insurance company license may be suspended or cancelled on the following grounds:
The IRDAI has the power to issue a duplicate certificate to insurance companies. To get IRDA Insurance Company License, the applicant must submit an application in accordance with IRDA/R4 and pay a fee of Rs 5000/.
The key eligibility criteria include:
The key steps are: