THE GAZETTE OF INDIA: EXTRAORDINARY [PART III ---SEC.

4]

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY, NEW DELHI

NOTIFICATION

New Delhi, the 14th July, 2000

Insurance Regulatory and Development Authority (Registration of Indian Insurance

Companies) Regulations, 2000

F.No.IRDA/Reg./7/2000.--

In exercise of the powers conferred by section 114A of the Insurance Act,

1938 ( 4 of 1938) read with section 26 of the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999), the Authority, in consultation
with the Insurance Advisory Committee, hereby makes the following regulations,
namely:-
CHAPTER I
1. Short title and commencement.--(1) These regulations may be called
Insurance Regulatory and Development Authority (Registration of Indian
Insurance Companies) Regulations, 2000.
(2) They shall come into force on the date of their publication in the Official
Gazette.

2. Definitions.-In these regulations, unless the context otherwise requires, -

(a) “Act” means the Insurance Act, 1938 (4 of 1938);

(b) “Authority” means the Insurance Regulatory and Development Authority

established under sub-section (1) of section 3 of the Insurance Regulatory and
Development Authority Act, 1999 ( 41 of 1999);

(c) “certificate” means a certificate of registration granted or renewed by the

Authority under these regulations;
(d) “enquiry officer” means an officer of the Authority or any person specifically
appointed by it to conduct an enquiry for purposes of these regulations;

(e)“general annuity business” means the business of effecting contracts to pay

annuities on human life but does not include contracts under pension business;

1
(f)“health insurance business” or “health cover means the effecting of
contracts which provide sickness benefits or medical, surgical or hospital
expense benefits, whether in-patient or out patient, on an indemnity,
reimbursement, service, prepaid, hospital or other plans basis, including assured
benefits and long term care;

(g) “Indian promoter” means and includes---

(i) a company formed under the Companies Act, 1956 (1 of 1956),

which is not a subsidiary as defined in section 4 of that Act;

(ii) a banking company as defined in subsection (4A) of section 2 of the

Act but does not include a foreign bank or branch thereof functioning in
India;

(iii) a Public financial institution as defined in section 4A of the

Companies Act, 1956 (1 of 1956);

(iv) a co-operative society registered under any relevant law for the time
being in force;

(v) a person, who is an Indian citizen or a combination of persons

who are Indian citizens;
(h) “infrastructure facility” means ---
(i) a road, highway, bridge, airport, port, Railways including BOLT,
road transport system, a water supply project, irrigation project, industrial
parks, water treatment system, solid waste management system,
sanitation and sewerage system;
(ii) generation or distribution or transmission of power;

(iii) telecommunication;

(iv) project for housing;

(v) any other public facility of a similar nature as may be notified by the
Authority in this behalf in the Official Gazette;

(i) “linked business’ means life insurance contracts or health insurance

contracts under which benefits are wholly or partly to be determined by
reference to the value of underlying assets or any approved index;

2
(j) “non-linked business” means life insurance contracts or health insurance
contracts which are not linked business;

(k) “pension business’ includes business of effecting contracts to manage

investments of pension funds or superannuation schemes or contracts to pay
annuities that may be approved by the Authority in this behalf;

(l) “principal officer” means any person connected with the management of the
applicant or any other person upon whom the Authority has served notice of its
intention of treating him as the principal officer thereof;

(m) All words and expressions used herein and not defined in but defined in the
Insurance Act, 1938(4 of 1938), or in the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999), shall have the meanings
respectively assigned to them in the those Acts.

3
 CHAPTER II

3. Procedure for registration.---(1) An applicant desiring to carry on insurance

business in India shall make a requisition for registration application in Form
IRDA/R1.

(2) An applicant, whose requisition for registration application has been accepted
by the Authority, shall make an application in Form IRDA/R2 for grant of a
certificate of registration.

4. Classes of insurance business for which requisition for registration

application may be made.—(1) An applicant shall make a separate
requisition for registration application under regulation 3 for each class of
business of insurance.

(2) The classes of business of insurance for which requisition for registration
application may be made are :

(a) Life insurance business consisting of linked business, non-linked

business or both;
or,

(b) general insurance business including health insurance business (or health
cover).

5. Requisition for Registration Application.—(1) An applicant shall be

eligible to apply for requisition referred to in sub-regulation (1) of regulation
3, if such applicant upon registration will be an Indian insurance company as
defined in section 2(7A) of the Act:

Provided that the applicant whose,-

(i)requisition for registration application has been rejected by

the Authority at any time during the preceding five financial
years on the date of requisition for registration application; or
(ii) application for registration has been rejected by the Authority
at any time during the preceding five financial years on the date
of requisition for registration application; or
(iii) certificate of registration has been cancelled or withdrawn
by the Authority; or

4
 (iv) name does not contain the words ‘insurance company’ or
‘assurance company’;

shall not be eligible to make a requisition for registration application under this
regulation.

(2) Every requisition for registration application shall be accompanied by------

(a) a certified copy of the memorandum of association and articles of association,

where the applicant is a company and incorporated under Companies Act, 1956
(1 of 1956);

(b) the name, address and the occupation of the directors and principal officer;

(c) a statement of the class of insurance business proposed to be carried on;

c
(d) a statement indicating the sources that will contribute the share capital
required under section 6 of the Act;

6. Furnishing of further information and clarification, etc.---(1) The

Authority may require the applicant, which makes a requisition under
regulation 3, to furnish further information or clarification regarding the
matters relevant to consider the requisition for registration application.

(2) The applicant referred to in sub-regulation (1) of Regulation 5, if so required,

may appear before the Authority through its principal officer.

7. Consideration of requisition for registration application.--- The Authority

on being satisfied that---
(a) the requisition in Form IRDA/R1 is complete in all respects
and is accompanied by all documents required therein;
(b) all information given in the Form IRDA/R1 is correct;
(c) the applicant will carry on all functions in respect of the
insurance business including management of investments within
its own organisation;
(d) the applicant submitting requisition for registration
application—

(i) is a bona fide applicant for registration under section 3 of the

Act;

5
 (ii) will be in a position to comply with all the requirements for
grant of certificate;

may accept the requisition and direct supply of the application for registration to
the applicant.

8. Rejection of requisition for registration application.—(1) Where the

requirements under regulation 7 are not complied with, the Authority may,
after giving the applicant a reasonable opportunity of being heard, reject the
application.

(1) The order rejecting the application under sub-regulation (1) shall be
communicated by the Authority within thirty days of such rejection to the
applicant in writing stating therein the ground on which the application has
been rejected.

(2) An applicant aggrieved by the decision of the Authority under sub-regulation

(2) may, within a period of thirty days from the date of such communication,
apply to the Authority for reconsideration of its decision.

(3) The Authority shall consider the application made under sub-regulation (3)
and communicate its decision, as soon as possible, in writing to the applicant.

9. Action upon rejection of application for requisition.—An applicant, whose

requisition for registration application has been rejected, may approach the
Authority with a fresh request for registration application after a period of two
years from the date of rejection, with a new set of promoters and or for a class
of insurance business other than the originally proposed one.

6
 CHAPTER III

1. Application for registration.—(1) An applicant, whose

requisition has been accepted, may make an application in Form IRDA/R2 for
grant of certificate of registration.

(1) Every application shall be accompanied by---

(a) documentary proof evidencing the making of deposit required under section 7
of the Act.
(b) evidence of having rupees one hundred crore or more paid up equity share
capital, in case the application for grant of certificate is for life insurance
business or general insurance business;

(c) evidence of having rupees two hundred crore or more paid up equity share
capital, in case the application for grant of certificate is for re-insurance
business;

(d) an affidavit by the principal officer and the promoters of the applicant
certifying that the requirements of the first proviso to section 6 of the Act to
the effect that paidup share capital is adequate after excluding any preliminary
expenses incurred in the formation and registration of the company and the
deposit required to be made under section 7 of the Act have been satisfied;

(e) a statement indicating the distinctive numbers of shares issued to each

promoter and shareholder in respect of share capital of the applicant;

(f) an affidavit by the principal officer and the promoters of the applicant
certifying that the paid up equity capital referred to in sub-clause (b) of clause
(7A) of section 2 of the Act, calculated is in accordance with regulation 11
does not exceed twenty six percent;

(g) a certified copy of the published prospectus, if any;

(h) a certified copy of the standard forms of the insurer and statements of the
assured rates, advantages, terms and conditions to be offered in connection
with insurance policies together with a certificate by an actuary in case of life
insurance business that such rates, advantages, terms and conditions are
workable and sound;

(i) a certified copy of the memorandum of understanding entered into between

the Indian promoter and the foreign promoter, if any, or amongst the

7
 promoters as a whole including details of the support comfort letters
exchanged between the parties;

(j) the original receipt showing payment of the fee of rupees fifty thousand for a
class of business;

(k) a certificate from a practising chartered accountant or a practising company

secretary certifying that all the requirements relating to registration fees, share
capital, deposits, and other requirements of the Act have been complied with
by the applicant;

(l) any other information required by the Authority during the processing of the
application for registration.

11. Manner of calculation of twenty six per cent. equity capital held by a
foreign company.—
(1) For the purposes of the Act and these Regulations, the calculation of the
holding of equity shares by a foreign company either by itself or
through its subsidiary companies or its nominees (hereafter referred
to as foreign investor) in the applicant company, shall be made as under
and shall be aggregate of:-

(i) the quantum of paid up equity share capital held by the

foreign company either by itself or through its subsidiary
companies or nominees in the applicant company;
(ii) the quantum of paid up equity share capital held by other
foreign investors, non-resident Indians, overseas corporate
bodies and multinational agencies in the applicant company;
and
(iii) the quantum represented by that proportion of the paid up
equity share capital to the total issued equity capital of an Indian
promoter company mentioned in sub-clause (i) of clause (g) of
regulation 2 held or controlled by the category of persons
mentioned in sub-clauses (i) and (ii) of this sub regulation.

Explanation: For purposes of calculation referred to above,

account need not be taken of the holdings of equity in an
Indian promoter company held by foreign institutional
investors, other than the foreign promoters of the applicant
and their subsidiaries and nominees, and Indian mutual funds
to the extent the investment of foreign institutional investors
and Indian mutual funds are within the approved limits laid

8
 down by the Securities and Exchange Board of India under its
rules, regulations or guidelines issued from time to time.
(2) Every insurer who has been granted registration under the Act shall,
within 15 days of the end of every quarter, furnish to the Authority a
statement indicating changes exceeding 1% of the issued capital in the
holding of the shares in his company and those of the promoter.

(3) Interpretation : The interpretation of this regulation will be that of the

Authority, whose decision on all issues will be binding on all
applicants/insurers and will be final.

12. Consideration of Application.-(1) The Authority shall take into account for
considering the grant of certificate, all matters relating to carrying on the
business of insurance by the applicant.

(1) In particular and without prejudice to the generality of the foregoing without
in any manner affecting its freedom, the Authority shall consider the
following matters for grant of certificate to the applicant, namely:-

(a) the record of performance of each of the promoters in the fields of

business/profession they are engaged in;

(b) the record of performance of the directors and persons in management of the
promoters and the applicant;
(c) the capital structure of the applicant company;
(d) the extent of obligation to provide life insurance or general insurance
policies to the persons residing in the rural sector, workers in the unorganised
sector or informal sector or for economically vulnerable or backward classes of
the society and other categories of persons specified by the Authority;
(e) the nature of insurance products;
(f) the planned infrastructure of the applicant company, including branches in
rural areas, to effectively carry out the insurance business;
(g) the level of actuarial and other professional expertise within the
management of the applicant company;
(h) the organisation structure of the applicant to meet the requirements of
regulation 7(c).
(i) other relevant matters for carrying out the provisions of the Act.

(3) The Authority shall give preference in grant of certificate of registration to

those applicants who propose to carry on the business of providing health covers
to individuals or groups of individuals.

9
13. Rejection of application for registration.—(1) Where an application for
registration is not complete in all respects and does not conform to the
regulations or instructions specified in Form IRDA/R2, and after considering
matters referred to in regulations 12 and 16 and on being satisfied that it is not
desirable to grant a certificate by the Authority, by an order, may reject the
application.

(1) The order rejecting the application under sub-regulation (1) shall be
communicated by the Authority within thirty days of such rejection to the
applicant in writing stating therein the ground on which the application has
been rejected.

(2) An applicant aggrieved by the decision of the Authority under sub-regulation

(2) may, within a period of thirty days from the date of such communication,
appeal to the Central Government in accordance with sub-section (2C) of
section 3 of the Act, for reconsideration of such decision.

(3) The decision of the Central Government on such appeal shall be final and
shall not be questioned before any Court.

(4) The fees, referred to in clause (j) of sub-regulation (2) of regulation 10, shall
not be refunded.

14. Effect of rejection of application for registration.—An applicant, whose

application for registration has been rejected shall not be entitled to a certificate:

An applicant may approach the Authority with a fresh request for registration
after a period of two years from the date of rejection, with a new set of promoters
and or for a class of insurance business other than the originally proposed one.

15. Manner of payment of fee for registration.- The fee of rupees fifty
thousand for each class of business for registration shall be remitted by a bank
draft issued by any scheduled bank in favour of the Insurance Regulatory and
Development Authority payable at New Delhi.

16. Grant of certificate of registration.— The Authority, after making such

inquiry as it deems fit and on being satisfied that –
(a) the applicant is eligible, and in its opinion, is likely to meet effectively its
obligations imposed under the Act;
(b) the financial condition and the general character of management of the
applicant are sound;

10
(c) the volume of business likely to be available to, and the capital structure and
earning prospects of, the applicant will be adequate;
(d) the interests of the general public will be served if the certificate is granted to
the applicant in respect of the class of insurance business specified in the
application; and
(e) the applicant has complied with the provisions of sections 2C, 5, 31A 32 and
32A has fulfilled all the requirements of these sections applicable to him,

may register the applicant as an insurer for the class of business for which the
applicant is found suitable and grant him a certificate in Form IRDA/R3.

17. An applicant granted a certificate of registration under the Regulations shall

commence insurance business for which he has been authorised within 12
months of the date of registration.

Provided, however, that if the company feels that it will not be able to commence
the insurance business within the specified period of 12 months, it can before the
time limit expires, seek an extension, by a proper written application, to the
Authority.

18. The Authority on receipt of the request referred to in Regulation 17 will

examine it and communicate its decision in writing either rejecting the request or
granting it.

19. No extension of time shall be granted by the Authority beyond 24 months

from the date of grant of registration under Regulation 16.

11
 CHAPTER IV

20. Manner of renewal of certificate. – (1) An insurer, who has been granted a
certificate under section 3 of the Act, shall make an application in Form
IRDA/R5 for the renewal of the certificate to the Authority before the 31st day of
December each year, and such an application shall be accompanied by evidence
of the payment of the fee which shall be the higher of,---
(a) fifty thousand rupees for each class of insurance business, and
(b) one-fifth of one per cent. of total gross premium written direct
by an insurer in India during the financial year preceding the year
in which the application for renewal of certificate is required to
be made, or rupees five crores, whichever is less; (and in the case
of an insurer carrying on solely re-insurance business, instead of
the total gross premium written direct in India, the total premium
in respect of facultative reinsurance accepted by him in India
shall be taken into account)

(1) If the insurer fails to apply for the renewal of registration before the date
specified in sub-regulation (1), the Authority may accept an application for
renewal of registration on receipt of the fee payable with the application along
with an additional fee by way of penalty of ten per cent. of the fee payable
with the application.

21. Manner of payment of fee for renewal of certificate.- The fee for renewal
of certificate shall be paid to the account of Insurance Regulatory and
Development Authority with the Reserve Bank of India.

22. Issue of duplicate certificate.--The Authority may, on receipt of fee of

rupees five thousand, issue a duplicate certificate to an insurer, if the insurer
makes an application to the Authority in Form IRDA/R4.

12
 CHAPTER – V

PROCEDURE FOR ACTION IN CASE OF DEFAULT

23. Suspension of certificate.— Without prejudice to any penalty which may be

imposed or any action taken under the provisions of the Act, the registration of an
Indian insurance company or insurer who ---
(a) conducts its business in a manner prejudicial to the interests
of the policyholders;
(b) fails to furnish any information as required by the Authority
relating to its insurance business;
(c) does not submit periodical returns as required under the Act
or by the Authority;
(d) does not cooperate in any inquiry conducted by the Authority;
(e) indulges in manipulating the insurance business;
(f) indulges in unfair trade practices;
(g) fails to make investment in the infrastructure or social sector specified under
sub-section (1A) of section 27D of the Act,

may be suspended for a class or classes of insurance business for such period as
may be specified by the Authority by an order;

Provided that the Authority for reasons to be recorded in writing may, in case of
repeated defaults of the type mentioned above, impose a penalty of cancellation
of certificate.

24. Manner of making order of suspension or cancellation of certificate.—

No order of suspension or cancellation shall be imposed except after holding an
enquiry in accordance with the procedure specified in these regulations.

25. Manner of holding enquiry before suspension or cancellation.—(1) For

the purpose of holding an enquiry under regulation 24, the Authority may appoint
an enquiry officer.
(2) The enquiry officer shall issue to the insurer a notice at the registered office
or the principal place of business of the insurer.
(3) The insurer may, within thirty days from the date of receipt of such notice,
furnish to the enquiry officer a reply, together with copies of documentary or
other evidence relied on by it or sought by the Authority from the insurer.

13
(4) The enquiry officer shall give a reasonable opportunity of hearing to the
insurer to enable it to make submissions in support of its reply made under sub-
regulation (3).
(5) Before the enquiry officer, the insurer may either appear in person or through
any person duly authorised by the insurer:
Provided that no advocate shall be permitted to represent the insurer at the
enquiry:
Provided further that where an advocate has been appointed by the Authority as
the presenting officer under sub-regulation (6), it shall be lawful for the insurer to
present its case through an advocate.
(6) If it is considered necessary, the enquiry officer may ask the Authority to
appoint a presenting officer to present its case.
(7) The enquiry officer shall, after taking into account all relevant facts and
submissions made by the insurer, submit a report to the Authority and
recommend the penalty to be awarded as also the justification of the penalty
proposed.

26. Show-cause notice and order.---(1) On receipt of the report from the
enquiry officer, the Authority shall consider the same and if considered necessary
by it, issue a show-cause notice as to why a penalty as it considers appropriate
should not be imposed.
(2) The insurer shall, within twenty-one days of the date of receipt of the show-
cause notice, send a reply to the Authority.
(3) The Authority after considering the reply to the show-cause notice, if
received, shall as soon as possible but not later than thirty days from the receipt
of the reply, if any, pass such orders as it deems fit. If no reply is furnished to the
Authority by the insurer within 90 days of the service of the notice, the Authority
can proceed to decide the issue ex-parte.
(4) An order passed under sub-regulation (3) shall give reasons therefor
including justification of the penalty imposed by that order.
(5) The Authority shall send a copy of the order made under sub-regulation (3)
to the insurer.

27. Effect of suspension or cancellation of certificate.--- On and from the date

of suspension or cancellation of the certificate, the insurer shall cease to transact
new insurance business:

28. Publication of order.--- The order of the Authority passed under sub-
regulation (3) of regulation 26, shall be published in atleast two daily newspapers
in the area where the insurer has his principal place of business.

14
 CHAPTER VII

PROVISIONS APPLICABLE TO EXISTING INSURERS

29. Registration of existing insurers.—(1) Every insurer carrying on insurance

business in India before the commencement of the Insurance Regulatory and
Development Authority Act, 1999 (41 of 1999) and requiring registration
under the Act, shall make an application, in Form IRDA/R2 for grant of
certificate of registration, within three months from the commencement of the
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).

(2) Every application shall be accompanied by---

(a) original certificate of registration;

(b) a confirmation that the requirements of section 7 of the Act have been met;

(c) evidence of having rupees one hundred crore or more paidup share capital, in
case the application for grant of certificate of registration is for life insurance
business or general insurance business;

(d) evidence of having rupees two hundred crore or more paidup share capital, in
case of an application for grant of certificate of registration for re-insurance
business;

(e) an affidavit by the principal officer of the applicant certifying that the
requirements of section 6 of the Act have been complied with;

(f) a certified copy of the standard forms of the insurer and statements of the
assured rates, advantages, terms and conditions to be offered in connection with
insurance policies together with a certificate in case of life insurance business by
an actuary that such rates, advantages, terms and conditions are workable and
sound;

(g) the original receipt showing payment of fee of rupees fifty thousand for each
class of business;

(h) any other information required by the Authority during the processing of the
application for registration.

(3) The Authority shall register every applicant, who submits an application in
accordance with sub-regulation (2), and grant a certificate in Form IRDA/R3.

15
30. Transitory Provisions.--- Every existing insurer shall be required to comply
with all the Regulations made by the Authority from the date of their
notification:

Provided that the Regulations made by the Authority on the following

subjects viz:-

(i) Accounts;
(ii)Assets, liabilities and solvency margin;
(iii) Reinsurance;

may, at the choice of an existing insurer, be complied with within a period of

twelve months from the commencement of those regulations:

Provided, however, the Authority may, on an application made to it by an

existing insurer, for valid reasons, grant a further period of time to comply with
the above regulations so, however, that the total time taken by an existing insurer
to comply with regulations in the areas mentioned above does not extend beyond
twenty-four months from the date(s) of commencement of those regulations.

Provided further that where an existing insurer does not conform to the
regulations in the areas mentioned above within the time allowed to him under
this regulation, the Authority shall proceed against him for failure to comply with
its directions.

Notwithstanding the above, nothing prevents the Authority from seeking

information from an existing insurer on the subjects mentioned in the first
proviso to this regulation and issue directions to an insurer, wherever necessary.

16
 FORM IRDA/R1
[REQUISITION FOR REGISTRATION APPLICATION]

[Please see regulation 5 of Insurance Regulatory and Development Authority

(Registration of Indian Insurance Companies) Regulations, 2000]

(This form is supplied free of cost to the applicants by the Insurance Regulatory
and Development Authority. Please fill in the application carefully. Should you
require any clarifications, please write to the Authority specifically mentioning
your query or call on us personally subject to prior appointment)

1. Name of the applicant

2. Address:
3. Date of incorporation as a Company: [DD/MM/YYYY]
4. Registration No. (issued by the Registrar of the Companies)
5. State the classes of insurance business for which registration is sought:
6. Amount of Authorised capital & Face value of shares and their numbers.
7. Amount of Paid up Capital & Number of equity shares:
8. Classification of Shares
9. Voting Rights of each class of Shareholders
10.Details of shareholders: [Please give full name, address, percentage of holding
in the paid up capital of the insurer, Occupation, Qualifications and
Experience, Number of shares held and Percentage of share capital in the
company] Please attach separate sheets if necessary. Details of persons
holding more than 1% of the issued capital of the applicant and promoters are
to be given in separate statements.
Full Name Date of Address with Qualificatio Experienc Present No. of Remarks
[first,middle, Birth Telephone ns e occupatio equity
surname] Nos., Fax n (voting
Nos., E-mail rights)
shares and
percentage
of total
holding
(1) (2) (3) (4) (5) (6) (7) (8)
Mr./Ms.

Note: If the promoter is a company or a body corporate registered in India or in

a foreign country, give the name of the company or body corporate in column
(1), the country of incorporation and the date of registration in column (2),
mention the areas of operation of the company in col.(5), leaving the columns
4 and 6 blank; particulars indicating the countries of operation, nature of

17
business enclosing statements of accounts of the company or body corporate
for the last 5 years are to be given. If there are more than one promoter, the
information may kindly be furnished in such a manner as to indicate clearly the
inter-relationship, if any, of parties. If a promoter is a nominee of another,
details of the principal in the above areas are to be given. Adequate care may
be taken to furnish full and complete information truthfully. Any
misrepresentation found later will lead to disqualification of the applicant, its
promoters and others connected thereto.

If the total required Capital has not yet been issued, please provide information
on the expected subscriptions to shares and whether the potential shareholders
have given any commitment or assurance to subscribe to the capital.

11. Applicant: This section should set out the background information.
Following information should be included:

• Particulars of the partners in the joint venture (e.g. company name, address,
names of directors, etc.).
• Constitution of the promoter companies – details of shareholders holding in
excess of 1% of the paid up capital.
• Nature of business, years in business of promoter companies.
• Past record of regulatory interventions/restrictive directions in respect of
promoter companies.
• The applicant’s reasons for entering the insurance market.
• Financial statements for the last five years. Strengths of the partners.
• Indication of the degree of commitment to the Indian market place displayed
by the applicant.
• The Agreement among the shareholders promoting the company.
• The obligations undertaken by the foreign promoters.
• The obligations of the applicant company to the foreign promoters.
• Sources for meeting the initial and future capital needs.
• In cases of non-corporate promoters, information on the above lines, suitably
modified, may be given.
Promoters (Separate statements for Indian promoters and foreign promoters, if
any, are to be given).
Details of promoters: [Please give full name, address, percentage of holding in
the paid up capital, Occupation, Qualifications and Experience, Number and
Percentage of share capital in the company]
Full Name Date of Address with Qualifications Experience Present No. of equity Remarks
[first,middle, Birth Telephone Nos., occupation (voting rights)
surname] Fax Nos., E-mail shares and
percentage of
total holding

18
(1) (2) (3) (4) (5) (6) (7) (8)
Mr./Ms.

If the promoter is a company or a body corporate registered in India or in a

foreign country, give the name of the company or body corporate in column (1),
furnish the date of registration in column (2), mention the areas of operation of
the company in col. (5), leaving the columns 4 and 6 blank. The particulars of
persons nominated by such promoter in the above pro forma; and particulars
indicating the countries of operation, nature of business enclosing statements of
accounts of the company or body corporate for the last 5 years should also be
provided.

12. The Applicant Company

This section should provide the key aspects of the Company. This will cover the
following:

• Name of the applicant Company.

• Date of Registration.[DD/MM/YYYY]
(As per Companies Act, 1956)
• Registration Number:
• Registered Office Address:
• Head Office Address:
• Address for Communications (state the name of the Company Secretary,
telephone numbers, fax numbers, mobile number, e-mail address and such
other details:
• Key aspects of the promoters (e.g. respective shareholdings, roles and
responsibilities, directorships, inter-relationships et.).
• Particulars of the Board of Directors:
• States of operation. Branch locations. (Proposed)
• Company’s Mission Statement.
• Senior management (key persons) and allocation of responsibilities.(Proposed)
• Organizational structure. Reporting relationships.
• Allocation of responsibilities between the head office and the operational
units.

[Enclose four certified copies of Memorandum and Articles of Association of the

registered company]

19
13. Capital structure
 Amount of Authorised capital & No. of Shares:

 Classification of Shares
 Amount of Issued Capital & No. of Shares:
 Amount of Paid up Capital & No. of Shares:
 Voting Rights attached to each class of Shares
 Nominal/Face value of Each Equity Share/ Other Share:

14. Directors and key persons:

For each director and key Directors and key persons, furnish the particulars in the pro forma given below:-

 Name (and any previous names)

 Private and Business Address (including any other private addresses within the last 15 years),
current Telephone, Fax and E-mail Addresses:
 Date and Place of Birth
 Nationality (and any previous Nationality)
 Passport / Identity Card:
--Number
--Date and Place of Issue:
--Date of expiry
--Issuing Authority:
 Name and Address of Bank:
--Account Numbers and Type of Account:
--Details of any loans or guarantees issued to or on behalf of the company in which the Directors and
key persons have a management or shareholding interest
 Family Status
 Details and Dates of Academic Qualification:
 Details and Dates of Professional Qualification:
 Description of the prospective position (including responsibilities) and proposed
date of commencement:
 Working Experience:
- Existing and Previous Employers (covering last 15 years)
- Details of whether the Directors and key persons and / or their Employers have been formally
supervised or regulated
- Nature of Employer’s Business
- Designation: (including duties and responsibilities)
- Date of Appointment
- Date of Resignation/Departure
- Details of Other Business interests in the last 15 years where the Directors and key persons have
been a working shareholder, director or controller.
 Relationship with the Company or related Companies or other third parties:-
-Details of shareholdings or voting powers in the company, or related Companies or third parties:
-Details of any Business relationships with the company or related Companies or third parties:
-Details of any Business relationships between the Directors’ and key persons’ former employers and
the company or related Companies or third parties:
 Full details on the Directors’ and key persons’ reputation and character:-
-whether the applicant has ever been declared bankrupt;
-any convictions of any offence involving fraud or other dishonesty;
-any disqualification of the Directors and key persons from acting as a director or in the management
of any company or organisation;

20
 -whether the Directors and key persons have ever been refused (or had revoked) a licence or
authorisation to carry on any regulated financial business;
 Any censure or disciplinary action initiated by any government, regulatory or
professional body;
 Any dismissals from office or employment, subjection to disciplinary proceedings
by the Directors’ and key persons’ employer or been refused entry to any profession or occupation;
 Any litigation with which the Directors and key persons have been involved over the
last 5 years;
 Whether any governmental, regulatory or professional body has ever investigated
any employer, company or organisation with which the Directors and key persons have been
associated as a director, officer, manager or shareholder;
 Whether any company or organisation with which the Directors and key persons
were associated as a director, officer, manager, shareholder or controller has ever been wound up,
gone into receivership or ceased trading either whilst the Directors and key persons was associated
with it or within one year after the Directors and key persons so ceased to be associated.

In the Remarks column, please mention whether any director is an agent, broker,
intermediary, director or employee of any other insurance company (or reinsurer) in
India or in any foreign country or director of any other company in India or in any
foreign country.

For these purposes, “Key persons” will include the Chief Executive, Chief Marketing
Officer, Appointed Actuary, Chief Investment Officer, Chief of Internal Audit and
Chief Finance Officer.

15. External Auditors:(Proposed)

Full Name Date Address with Date of Experience in Period of No. of equity Remarks
[first,middle, of Telephone Appointme auditing appointment (voting rights)
surname] Birth Nos., Fax nt insurance shares and
Nos., E-mail companies percentage of total
holding in the
applicant company
(1) (2) (3) (4) (5) (6) (7) (8)

If auditors are a firm, state the name of the firm in Col (1), its date of registration
in Col (2)
Note: In choosing external statutory auditors, the applicant may be guided by the
Regulations for Preparation of Financial Statements and Auditors Report of
Insurance Companies, more particularly those dealing with appointment of
auditors.

16. Business to be transacted:

Describe the insurance business to be transacted.

17. Where in the country do you wish to carry on insurance business? (tick the
boxes)
(a) Regions: : North South East West Central

21
(b) Metropolitan cities: Mumbai Chennai Delhi
Calcutta

(c) Concentration: : Rural Urban Both Rural & Urban

18. Distribution Channels: Direct Tied Agents

Brokers/Intermediaries Others

19. Financial Projections (Both for Life and general insurance – depending
on the class applied for registration)
A description of the model used for financial projections should be provided,
based on assumptions, for a period of 5 years, for each year from the start. These
should set out the following:
• Size of sales force.
• Amount of sales.
• Size of sales support and administrative staff.
• Premium income.
• Investment income.
• Commissions and other sales related expenses.
• Expenses of administration.
• Income tax and other taxes.
• Statutory reserves.
• Required solvency margins.
• Profit and loss accounts and balance sheets.
• First year and renewal expense ratios.
• Capital needs.—Indian and Foreign
• Break-even periods and the Return on Capital.
• Shareholder dividends: Indian and Foreign.
• Policyholder surpluses and bonus declarations
This section should also discuss the manner in which the future capital needs will
be met.

20. Sensitivity Analysis (Life)

The analysis set out in para 19 above will be based on a base scenario and a few
alternate scenarios. Sensitivity analysis based on “Optimistic” and “Pessimistic”
assumptions should also be included. These will relate to assumptions such as:

• Size of sales force.

• Volume of sales.
• Average size of sale.

22
• Levels of mortality/morbidity, policy terminations.
• Administrative expenses (including inflation).
• Future investment conditions.

A discussion on the manner in which the outcome of the pessimistic scenarios

will be handled should be included.

21.Rural Business
Legislation requires that a specified percentage of the new business should be
undertaken in the rural or social sector. The manner in which this requirement
will be fulfilled should be described. For the purpose of this section, please see
the relevant regulations covering this area.

22. Obligations in unorganised sector and backward classes

In addition, insurers shall discharge obligations in respect of unorganised sector
to cover risks of economically vulnerable sections of the society and backward
classes. For the purpose of this section, please see the relevant regulations
covering this area.
The manner in which these requirements are proposed to be met should be
described in detail.

23.Particulars of Previous Application: Has the applicant ever applied for

license in India or outside India? If so, give particulars.

24.Conclusion In conclusion, the report should discuss the viability of the

operations. Any special issues or concerns should also be indicated.

Certification

I, the undersigned, solemnly declare that the facts given in this application form
on behalf of the Applicant Company, are true and that the projections and
estimations are based on reasonable assumptions.

Place

Date: Signature of the Authorised person (with seal)

23
 FORM IRDA/R2

APPLICATION FOR REGISTRATION

[Please see regulation 10 of Insurance Regulatory and Development Authority

(Registration of Indian Insurance Companies) Regulations, 2000]

(This form is supplied free of cost to the applicants by the Insurance Regulatory
and Development Authority. Please fill in the application carefully. Should you
require any clarifications, please write to the Authority specifically mentioning
your query or call on us personally subject to prior appointment)

1. Geographic Spread: Give the addresses of the administrative offices in each

State and Union Territory in India, overseas, and also in Rural Areas with the
name of person in charge of the office. [if the applicant has not decided, he might
give the proposed number and locations of administrative offices in each State
and Union Territory in India, overseas, and also in Rural Areas]

2. Market Research and Analysis

The company may have undertaken some form of market analysis to ascertain the
market potential, consumer needs, target market, product potential, etc. (in
particular health insurance segment). Full description of the research, along with
the conclusions reached.

3. Products to be Sold
Based on the market research and analyses undertaken, the partners would have
decided upon the products to be marketed -- individual or group insurance. The
description should include the following:

• Description of the product features,

• The target markets where the products will be sold.
• Specification of the names of the products in life/general insurance,
linked/non-linked, health insurance.

4. Distribution
This section should describe how the products will be or are proposed to be
distributed. This should cover the following:

• The channels of distribution to be used, with an indication on the relative

degrees of importance placed on each of the channels.
• The distribution network that will be set up in the market place.
• Any limitations on the products to be sold by any of the channels.
• Remuneration to be paid to each channel of distribution.

24
5. Sales Promotion
The approach to be used for advertisement and sales promotion, e.g. the media to
be used, frequency, etc. Copies of sales material, literature advertising the
product, if any, should be provided.

6. Underwriting
This section should describe the approach used for underwriting of proposals; the
arrangements made for medical and other reports, etc.

Please also state the nature of support to be provided in underwriting and in

training of underwriters by the foreign promoters.

7. Investments
Each company will have established its investment philosophy that will be
appropriate for the products it intends to market. This should be described.
Other information should include the investment personnel, investment adviser
(if outsourced), location of the investment operations, investment brokers to be
used, etc. Regulations regarding Investment, Valuation, Exposure – Prudential –
Provisioning Norms- Life & Non Life issued by the Authority may be taken into
account.

8. Information Technology
Insurance industry is very much dependent on computer technology. Full
description should be provided for the following:
• The different areas where computer systems will be employed.
• Whether the systems will be bought off the shelf (with some customization),
developed locally or imported into India by the foreign promoter (with some
customization).
• The degree to which the systems will be used for policyholder servicing.
• The degree of interconnectivity of the systems.
• A description of how the I/T systems will be used to develop the required
Management Information Systems.
• Extent of procedures and operations which will remain manual.

9. Customer Service
Customer service could be provided either centrally through the head office or
decentralized to the branch offices/operational units. The degree to which
customer service is planned to be decentralized to the branch offices should be
described. The service standards planned to be introduced for the various aspects
of customer service should be described. Any plan to introduce “call-centres” or
customized grievance settlement machinery may be indicated.
Mention the time schedule for various types of service offered by the Company.

25
10.Retention Limits and Reinsurance
The nature of reinsurance arrangements should be described fully, giving the
following details:
• The name(s) of reinsurer(s).
• The basis of reinsurance.
• Terms of reinsurance.
The manner in which the retention limit(s) have been established should be
discussed.

11.Recruitment and Training

Different areas of the company require personnel with different skill sets. These
personnel will include agents, sales supervisors, branch managers, administrative
staff for various departments, etc. Some of the departments will require special
technical skills (e.g. underwriting, actuarial, accounting, sales, information
technology, etc.). This section should set out the following information for each
of the categories:
• Desirable skill sets.
• Sources for recruitment.
• Approach to be used for training—in house /outsource.

12.Internal Controls
The company will need to establish a set of procedures and norms for various
activities. The manner in which these will be monitored should be described.
These activities will relate to underwriting and policy issue, customer service,
investments, accounting, new product pricing, computation of reserves and
Required Solvency Margins, regulatory compliance, claim processing and
settlement procedures, etc.

13. Expenses of Administration

Life:
In arriving at the premium rates, the Appointed Actuary will need to build the
estimated expense levels into the premium calculations. The manner in which
the expenses of administration have been estimated and converted into average
factors should be described. These expenses will have to be distinguished
between first year and renewal, fixed and variable. All overhead expenses will
also have to be covered.

General:
The proposes expenses as a per cent. of premium at levels of operational offices
and each level of supervisory offices and head office.

26
14. New Product Pricing

Life:
The financial projections will incorporate the sale of planned products. A
description of these products to the extent possible should be provided. This
should include the following:
• The product features, such as coverage periods, premium levels, non-forfeiture
values, loan provisions, etc.
• Distribution channels to be used.
• Commission scales.
• Average policy size.
• Reserving method used.
• The levels of the various parameters built into the computations. These will
relate to mortality, policy terminations, expenses, interest and any other
parameters that may be relevant for the product. The values of these
parameters will have to be specified at two levels - at the Expected level and at
a level inclusive of the Margins for Adverse Deviations. The justifications for
both levels should be provided.
• Profitability criteria used in product pricing.

General:
In respect of products not governed by market tariffs, please indicate how the
products will be priced, the data base which will be used to determine premium
bases and the terms and conditions, the statistical system which will be
established to review adequacy of rates.

15. Information Policy: Mention the Company’s policy regarding insurance

awareness in the public.

16. Premium Rates: Enclose the Company’s Premium Tables for the products
along with rebates, if any, offered.

Certification

I, the undersigned, solemnly declare that the facts given in this application form
on behalf of the Applicant Company, are true and that the projections and
estimations are based on reasonable assumptions.

Place
Date: Signature of the Authorised Person (with Seal)

27
 FORM IRDA/R3

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

(Seal of the Authority)

CERTIFICATE OF REGISTRATION
Registration Number._________

This is to certify that (Name of Insurer and his

address)

has this day been registered in accordance with the

provisions of sub-section (2A) of section 3 of the
Insurance Act, 1938 (IV of 1938) to transact the classes
of business specified in the Schedule below.

Given under the seal of the Authority at New Delhi

this _____________ day of __________
two thousand and _______________________________.

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

Schedule
Classes of business which may be transacted:--
1.____________________________________
2.____________________________________
3.____________________________________
4. ____________________________________

FORM IRDA/R4

28
 ISSUE OF DUPLICATE CERTIFICATE OF REGISTRATION.

An insurer shall apply in the following format with the documents specified
herein:

To
Insurance Regulatory and Development Authority.
New Delhi

Application for issue of duplicate certificate of registration.

We request you to issue a duplicate certificate of registration for which we give

below the following details:

Name of Insurer:
Registration Number:
1. Date of Certificate of Registration:
2. How original certificate has been lost, destroyed or mutilated?

3. Particulars of remittance of fee.

Place Yours truly,

Date: Signature of the principal officer.

(Name of the principal Officer)
(Seal)

Notes: 1. Enclose the original copy of the resolution of the board for the issue of
duplicate certificate, in duplicate.
2. Enclose a DD for Rupees five thousand drawn in favour of Insurance
Regulatory and Development Authority payable at the place of head office of the
Authority.

29
 FORM IRDA/R5

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

CERTIFICATE OF RENEWAL OF REGISTRATION

Registration Number:

Date of Renewal of Registration:

The certificate of registration of

(Name of Insurer)

is hereby renewed under section 3A of the Insurance

Act, 1938, for the year to

Issued at New Delhi on day of 2000.

(Seal of the Authority.) (Authorised Signatory)

N. RANGACHARY, Chairperson
[No. Advt.-3/4/Exty/161/2000]

30