IRDA Insurance License
What do you mean by an IRDA License?
The insurance sector in our country until 1999, was regulated by the Controller of Insurance under the Insurance Act, 1938. Nevertheless, the formation of IRDA made people feel the requirement of renewal in the arena of insurance. This was because most of the earlier provisions were obsolete or irrelevant in the present context.
Scope of IRDA
The latest IRDA regulation covers the following aspects of importance in the arena of insurance:
What is the process of granting license to companies to start an insurance business in our country?
It is mandatory for all entities to acquire a Certificate from the Authority before carrying on any insurance business. The license to be acquired for various categories of insurance can be procured from the IRDA, for example Life Insurance, Fire Insurance, Marine Insurance etc. But it is to be kept in mind that the life insurance business shall not be combined with any other type of insurance business.
The license from IRDA is mandatory. Also the old players in the arena of insurance, like the National Insurance, General Insurance, Oriental Insurance etc., had to obtain a fresh certificate within 3 months from the date of commencement of this Act. The insurers exempted from obtaining license under the previous Act, were covered under this Act.
Documentation Required For Registration Certificate Before IRDA
A request for acquiring the Certificate of Registration should be made to the IRDA in Form prescribed under IRDA/R1. The application should be supported by the following documents:
The primary appeal would be screened by IRDA and additional information may be asked for. Even a Principal Officer may be appointed by the Authority for seeking any information or clarification on their behalf.
Stage Two for IRDA License
After being contented about the instructions and documents supplied along with the Form IRDA/R1, the Authority may ask for an additional application in the prescriber Form IRDA/R2 which shall be accompanied with the following documents:
The statement showing declaration from the Principal Officer about fulfillment of Minimum Capital Requirement. For a reinsurance business the capital requirement shall be 20 crores and for the life insurance as well as General Insurance 10 crores.
Grant of Registration Certificate for Insurance business in India
Only after the receipt of application and on being contented about the following mentioned conditions, the Certificate of Registration shall be granted to the insurer by the IRDA. The conditions include the following:
Refusal of Registration for insurance operations
The applicant may be refused of the registration of an insurer on the following grounds:
In case, the aspirant is denied of the registration as an insurer, he can appeal before the Central Govt. within 30 days from the date on which a copy of the decision from the Authority is received
In case of the insurance registration, the decision of the government shall be final and cannot be appealed against in any court of law.
Cancellation of Registration
In case of any conditions particularized for registration is not compiled with, then the Authority reserves the right to cancel the registration either wholly or in part, in case the applicant is involved in more than one insurance business.
Renewal of Registration
The registration shall only be renewed annually and the application for renewal shall be made before 31st December of the preceding year following which the renewal is sought for, along with the fees as below:
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“Insurance Repository” means an organisation formed as well as certified under the Companies Act, 1956 . It is an organisation that has been given a certificate of registration by Insurance Regulatory along with Development Authority (IRDA) for up keep of data of insurance policies in Electronic form for its Insurers. The Insurance Repositories grants the relaxation of holding insurance policies delivered in an electronic form.
The objective of maintaining an insurance repository is to supply as well as support policyholders an ease to keep insurance policies in electronic form also to undertake revisions, changes or modifications in the insurance policy with speed as well as accuracy. In addition, the repository acts as a single stop for several policy service requirements. The Insurance repository system also brings about efficiency and transparency in the issuance and maintenance of insurance policies.