29 April , 2021 Fdiindia
FDI In Insurance: Required To Ensure Transparency In The Operation
As of March 2021, there were only 24 life and 34 non-direct insurers in India, whereas there are 243 life insurance organizations and 107 non-life insurance organizations at the time of nationalization. 49?I permitted with the Indian owned regulation is availed of only nine of the 23 life and eight of the 28 non-life and health insurer. The draft rule of the Indian insurance organizations modifications 2021 to raise FDI in the insurance domain and 74% to offer that in any insurance company having foreign investment majorly of its directors and key management personnel should be an Indian resident, consisting one amongst the chairperson of the board, MD and CEO. According to the FDI policy, this is connected to the Foreign Exchange Management Act 1999 and the Citizenship Act 1955, which covers Indian residents staying in India for more than 182 days. The condition for organizations with FDI over 49% is to protect 50% Board of Directors consisting of independent directors. For such organizations where a dividend is proposed, a 30% high solvency ratio is needed, and if it is not maintained, 50% of the net profit will be retained. It is based on the archaic compliance-based solvency instead of a risk-based approach by meriting a review.