IRDA allows companies to up equity exposure

The Insurance Regulatory Authority of India (IRDA) said it has approved revised regulations regarding investments made by insurance companies. Following this, companies will now be allowed to increase their exposure in equity in a given company from the current 10 per cent to 12 per cent and 15 per cent depending on the size of the controlled fund of any given insurer. IRDA said this is commensurate and appropriate given the size of funds under consideration without adversely affecting the prudential management of investments.

The regulator has approved health insurance regulations, which will come into effect soon after publishing in the official gazette.

But with regards to approval of bancassurance regulations, the authority felt the need for futher consultations with the Insurance Advisory Committee. IRDA has decided to propose significant changes in the new bancassurance regulations.

It also approved regulations to strengthen the Indian Institute of Insurance Surveyors and Loss Assessors, which will enable the profession to further improve its professional capability and the effectiveness with which they serve the insurance industry.

Meanwhile, IRDA said it requires a standard proposal form for sale of life insurance products, which is mandatory for all life insurance products sold in India after six months from the date of publication of these regulations in the official gazette. This is essential for insurance companies and intermediaries so as to capture full details of a policyholder in accordance with the KYC norms.