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DHFL bankruptcy: Irdai rules out troubles for two insurance arms; asks insurers to write off exposure

“Even if the parent company goes for liquidation, it will be sold and somebody else will take over. So, DHFL’s share in these insurance companies will be transferred to the new owners,” he said and assured that no policyholders will be affected during the process. However, Khuntia asked insurers to write off their exposures to the housing finance company in the similar manner as they followed in the case of the now bankrupt IL&FS.

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Govt unveils norms for 100% FDI in insurance intermediaries sector

However if a bank, whose primary business is outside the insurance area, is allowed by the IRDAI to function as an insurance intermediary, the foreign equity investment caps applicable in that sector, which is 74 percent, will continue to apply, subject to the condition that the revenues of such entities from the primary (non-insurance related) business must remain above 50 per cent. of their total revenues in any financial year.

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IRDAI shuts down Anil Ambani’s health insurance co,merge it with Reliance General

The IRDAI was compelled to take such a drastic action as the debt laden Reliance Capital, the parent company of RHICL has consistently failed to provide adequate capital to its one year old health insurance subsidiary, that had experienced steady erosion of the required solvency margin of 150 per cent over one year and had plunge to 63 per cent as on Sept 2019.RHICL, which commenced operations in October, 2018 has not been able to maintain the required solvency margin since June,2019,said the IRDAI

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