The Insurance Regulatory and Development Authority of India (IRDAI) has issued Insurance Regulatory and Development Authority of India (Indian Insurance Companies) (Amendment) Regulations, 2021.
The objective of these regulations is to harmonise the provisions of various regulations applicable to insurance companies with Insurance (Amendment) Act, 2021 read with Indian Insurance Companies (Foreign Investment) Rules, 2015 by amending the corresponding regulations which are mentioned herein.
The amendment provides that In an Indian Insurance Company having foreign investment exceeding forty-nine percent:
(a) for a financial year for which dividend is paid on equity shares and for which at any time the solvency margin is less than 1.2 times the control level of solvency, not less than fifty percent of the net profit for the financial year shall be retained in general reserve; and
(b) not less than fifty per cent of its directors shall be independent directors, unless the chairperson of its Board is an independent director, in which case at least one-third of its Board shall comprise of independent directors.