IRDAI Reg Section 39 : Eligibility Criteria for Foreign Branch Office
Act
Summary
Section 39 of the IRDAI Regulations, 2024, outlines the eligibility criteria for insurers aiming to establish a foreign branch office or an office at an International Financial Services Centre (IFSC). Insurers must have operated for at least three years, maintain solvency, and show profitability. Additionally, closely held insurers must provide a Board Resolution, while widely held insurers require a shareholder resolution to support the foreign branch operations.
JavaScript did not load properly
Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.
Explanation using Example
Example 1: Establishing a Foreign Branch Office in Singapore
Introduction: ABC Insurance Ltd., a well-established insurance company in India, is considering expanding its operations by setting up a foreign branch office in Singapore. The company has been operational for four years and is evaluating its eligibility under the IRDAI Regulations, 2024.
Application: According to Section 39, Part B, Chapter 2 of the IRDAI Regulations, 2024, ABC Insurance Ltd. must meet specific criteria to establish a foreign branch office. Firstly, the company has been in operation for more than the required three years, fulfilling the first criterion. Secondly, ABC Insurance Ltd. has maintained a control level of solvency and has consistently reported profits after tax, with no adverse reports against it, thus meeting the second criterion. Lastly, as a closely held company, ABC Insurance Ltd. must provide a Board Resolution supporting the commitment to the foreign branch office's operations.
Outcome: ABC Insurance Ltd. successfully meets all the eligibility criteria outlined in Section 39. By submitting the necessary documentation, including the Board Resolution, the company receives approval from IRDAI to establish its foreign branch office in Singapore. Non-compliance with these criteria could have resulted in the denial of the application, delaying the company's expansion plans.
Conclusion: Compliance with the eligibility criteria ensures that ABC Insurance Ltd. can expand its operations internationall...
Login to access all pages and read more content.
To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app
