{"id":140018,"date":"2026-04-22T08:56:16","date_gmt":"2026-04-22T08:56:16","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=140018"},"modified":"2026-04-22T08:56:16","modified_gmt":"2026-04-22T08:56:16","slug":"india-insurance-reinsurance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/india-insurance-reinsurance\/","title":{"rendered":"India: Insurance &amp; Reinsurance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-140018","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-reinsurance","jurisdictions-india"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Tuli &amp; Co<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Tuli-co.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Tuli &amp; Co<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Tuli-co.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance &amp; Reinsurance laws and regulations applicable in India<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the writing of insurance contracts regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All insurance contracts are required to be \ufb01led with the Insurance Development and Regulatory Authority of India (IRDAI), ie, the Indian insurance regulator or approved by the insurance companies\u2019 internal committee, as applicable, in accordance with the applicable product \ufb01ling procedures issued by the IRDAI.<\/p>\n<p>Additionally, in terms of the content of insurance contracts, the IRDAI has issued additional guidance for various forms of insurance products, including:<\/p>\n<ul>\n<li>The IRDAI has issued the IRDAI (Insurance Products) Regulations 2024 (Products Regulations) along with the accompanying master circulars for life, health and general insurance products which set out various requirements to be included in life, general and health insurance contracts.<\/li>\n<li>A number of regulations and master circulars issued by the IRDAI specify that, broadly, product literature must be in a simple and clear manner, which is easy to understand and must avoid the use of any unfair\/one-sided clauses.<\/li>\n<li>Previously, the IRDAI had specified standardised wordings for various general, health, and life insurance policies. However, in 2024, the IRDAI expressly repealed the standardised wordings for most products. Certain standard products, such as \u201c<em>Saral Jeevan Bima<\/em>,\u201d \u201c<em>Saral Pension<\/em>,\u201d \u201c<em>Arogya Sanjeevini<\/em>,\u201d and \u201c<em>Corona Kavach<\/em>\u201d continue to remain in effect.<\/li>\n<li>Further, there are extraneous rules that impact policy terms. For example, the Insurance Act 1938, as amended from time to time (Insurance Act) gives the policyholder a right to override contrary policy terms in favour of Indian law and jurisdiction, and Indian policyholders cannot be stopped from approaching the consumer courts.<\/li>\n<\/ul>\n<p>In addition, the International Financial Services Centres Authority (Insurance Products and Pricing) Regulations 2022 (IFSCA Products Regulations) provide a streamlined framework for the design and pricing of insurance products offered by IFSC Insurance Offices (IIOs) in International Financial Services Centres (IFSCs) in India. These regulations do not apply to IIOs engaged in reinsurance business. The regulator for these entities is the International Financial Services Centres Authority (IFSCA). The IFSCA Products Regulations, <em>inter alia<\/em>, require that the terms and conditions of the product do not adversely affect the interests of the policyholder.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are types of insurers regulated differently (i.e. life companies, reinsurers?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the IRDAI has issued speci\ufb01c regulations\/guidelines\/circulars which govern the establishment, licensing and functioning of life insurers, general insurers, health insurers, Indian reinsurers and branch offices of foreign reinsurers, including:<\/p>\n<ul>\n<li>The IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations 2024 (Registration Regulations) and the IRDAI\u2019s \u201c<em>Master Circular on Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers 2024<\/em>\u201d of 15 May 2024, which regulate the establishment of primary insurance companies and Indian reinsurers.<\/li>\n<li>The IRDAI (Registration and Operations of FRB and Lloyd\u2019s India) Regulations 2024 (Branch Office &amp; Lloyd\u2019s Regulations) and the IRDAI\u2019s \u201c<em>Master Circular on Reinsurance 2024<\/em>\u201d of 31 May 2024 (Reinsurance Master Circular), which regulate branch offices of foreign reinsurers established in India and syndicates of reinsurers operating through service companies set up in India under the Lloyd\u2019s India branch.<\/li>\n<li>The Reinsurance Master Circular, which also sets out the norms applicable to the registration of cross border reinsurers (CBRs).<\/li>\n<\/ul>\n<p>In addition, the IFSCA (Registration of Insurance Business) Regulations 2021 (IIO Regulations) and the IFSCA (Operations of International Financial Services Centres Insurance Offices) Guidelines 2021 (IIO Guidelines) govern the setting up and operations of an IIO in an IFSC in India.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurance brokers and other types of market intermediary subject to regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the registration and functioning of insurance intermediaries (which include insurance brokers, corporate agents, web aggregators, IMFs, TPAs, and surveyors and loss assessors) are governed by the specific regulations issued by the IRDAI for the specific forms of insurance intermediary. Each of these regulations contain a speci\ufb01c code of conduct prescribed by the IRDAI to be adhered to by that form of insurance intermediary. Further, the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act 2025 (Amendment Act), which amended the Insurance Act and came into force on 5 February 2026, expressly recognises managing general agents (MGAs) as a distinct category of insurance intermediary. As of date, the IRDAI is yet to issue regulations setting out the norms applicable to MGAs.<\/p>\n<p>Additionally, the IFSCA (Insurance Intermediary) Regulations 2021 (IIIO Regulations) and the IFSCA (Guidelines on Operations of IFSC Insurance Intermediary Offices) 2021 set out the norms applicable to IFSC insurance intermediary offices (IIIOs) (which include insurance brokers, corporate agents, TPAs, and surveyors and loss assessors) in an IFSC. The IFSCA also recently issued a draft consultation paper of 13 March 2026 proposing the IFSCA (Managing General Agents) Regulations 2026 (Draft MGA Regulations). The Draft MGA Regulations seek to supersede the existing framework governing MGAs in an IFSC and establish a dedicated regulatory regime for MGAs operating therein, recognising them as a distinct class of specialised insurance intermediaries.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is authorisation or a licence required and if so how long does it take on average to obtain such  permission? What are the key criteria for authorisation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, all entities writing insurance business or reinsuring Indian risks are required to register with the IRDAI. The applicable framework does not prescribe a fixed statutory timeline for grant of registration. Broadly, the regulator considers the financial condition of the applicant, the soundness of its management, the adequacy of its capital structure and projected business, and whether grant of registration would serve the interests of the general public. The following entities are required to register with the IRDAI:<\/p>\n<ul>\n<li>Indian insurance companies are required to apply for registration with the IRDAI to carry out one of, life insurance, general insurance, health insurance or reinsurance business, under the Registration Regulations. This is a 3-stage application process which requires a staged-wise filing of detailed information and documentation with the IRDAI.<\/li>\n<li>Branch offices of foreign reinsurers are required to apply for registration with the IRDAI to carry out reinsurance of Indian risks under the Branch Office &amp; Lloyd\u2019s Regulations and the Reinsurance Master Circular. These entities are established in India as branch offices of overseas reinsurers. This is also a 3-stage application process which requires a staged-wise filing of detailed information and documentation with the IRDAI.<\/li>\n<li>Syndicates of reinsurers that seek to operate through service companies under the Lloyd\u2019s India branch are required to follow the application procedure set out under the Branch Office &amp; Lloyd\u2019s Regulations and the Reinsurance Master Circular.<\/li>\n<li>Overseas reinsurers who do not wish to establish a presence in India but seek to participate in the reinsurance of Indian risks can do so from their overseas offices by registering with the IRDAI as CBRs in accordance with the single stage procedure set out under the Reinsurance Master Circular.<\/li>\n<\/ul>\n<p>In addition, IIOs are required to apply to the IFSCA for registration under the procedures set out under the IIO Regulations, in order to establish insurance or reinsurance offices in GIFT City. In granting registration, the IFSCA may satisfy itself, <em>inter alia<\/em>, that the applicant, including its promoters and key managerial personnel, are fit and proper persons. The IIO Regulations also require the applicant and its promoters, partners or controlling shareholders to be from a Financial Action Task Force (FATF)-compliant jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions or controls over who owns or controls insurers (including restrictions on  foreign ownership)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Prior to the Amendment Act, any direct or indirect foreign investment in an Indian insurance company or Indian reinsurer was restricted to 74% of the paid-up equity capital. The Amendment Act increased this limit to 100%, subject to such conditions and such manner as may be prescribed.<\/p>\n<p>Separately, acquisitions and transfers of shares in insurers continue to remain subject to the approval framework under Section 6A of the Insurance Act and the Registration Regulations.<\/p>\n<p>For insurance intermediaries, 100% foreign direct investment is permitted under the automatic route, subject to the applicable foreign investment conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to insure or reinsure risks in your jurisdiction without a licence or authorisation?  (i.e. on a non-admitted basis)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Non-admitted insurers are not permitted to directly insure property situated in India or any ship or other vessel or aircraft registered in India, save with prior permission of the relevant regulator.<\/p>\n<p>However, a person resident in India is permitted to take or continue to hold a health insurance policy issued by an insurer outside India, provided the aggregate remittance does not exceed the limits prescribed by the Reserve Bank of India (RBI).<\/p>\n<p>Further, a person resident in India may take or continue to hold a life insurance policy issued by an insurer outside India, provided that the policy is held under a speci\ufb01c or general permission of the RBI.<\/p>\n<p>Non-admitted insurers which are listed with the IRDAI as CBRs, in accordance with the Reinsurance Master Circular, can participate in the reinsurance of Indian risks in accordance with the procedures and norms set out under the IRDAI (Re-insurance) Regulations 2018, as amended from time to time (Reinsurance Regulations).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a branch of an overseas insurer, insurance broker and\/or other types of market intermediary in  your jurisdiction subject to a similar regulatory framework as a locally incorporated entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Apart from CBRs who are primarily only required to obtain a registration with the IRDAI, branch offices of foreign reinsurers and syndicates of Lloyd\u2019s established and operating under the Branch Office &amp; Lloyd\u2019s Regulations are required to follow a number of regulations and other guidance issued by the IRDAI which also apply to primary insurance companies and Indian reinsurers.<\/p>\n<p>The present Indian insurance framework is silent on any mechanism for overseas insurance intermediaries like insurance brokers for setting up a branch office in India. An insurance intermediary who wants to carry out its business in India can only do so by incorporating a company under the Indian laws and obtaining the requisite registration from the IRDAI.<\/p>\n<p>IIOs established in GIFT City in a branch form are also required to follow the various regulations and other guidance issued by the IFSCA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions\/substance limitations on branches established by overseas insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A branch office of foreign reinsurer and a Lloyd\u2019s India service company are permitted to undertake reinsurance business in India after obtaining prior approval from the IRDAI, and an IIO is permitted to undertake insurance\/reinsurance business only after obtaining prior approval from the IFSCA, in accordance with the applicable regulations.<\/p>\n<p>Further, the IRDAI and the IFSCA have set out certain minimum requirements that are required to be maintained by a branch office of foreign reinsurer and an IIO respectively, in terms of minimum capital, net owned funds, minimum retention, and solvency margin.<\/p>\n<p>In addition, an IIO registered to transact direct insurance business cannot write direct insurance business from the Domestic Tariff Area (DTA) except in accordance with Section 2CB of the Insurance Act.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What penalty is available for those who operate in your jurisdiction without appropriate  permission?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A person carrying out insurance business in India without valid registration could face a penalty of up to INR 25 crores (c. US$ 2,697,057) and imprisonment for a term of up to ten years.<\/p>\n<p>A person acting as an insurance intermediary (including an insurance broker) without being registered could face a penalty of up to INR 10 lakh (c. US$10,788). In addition, the appointment of an unlicensed person to act as an insurance intermediary is punishable with a penalty of up to INR 1 crore (c. US$ 107,883).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How rigorous is the supervisory and enforcement environment? What are the key areas of  its focus?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The insurance sector is highly regulated in India. The IRDAI has <em>suo motu<\/em> powers for undertaking inspections, conducting enquiries and investigations (including audit) of insurers, reinsurers (including branch offices of foreign reinsurers), insurance intermediaries and other organisations connected with insurance business.<\/p>\n<p>Recently, the Amendment Act has increased the maximum penalty for non-compliance with the applicable regulations or directions issued by the IRDAI to INR 10 crore (c. US$ 1,078,503). The IFSCA has been granted similar powers within the IFSC under the International Financial Services Centres Authority Act 2019 (IFSCA Act).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the solvency of insurers (and reinsurers where relevant) supervised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The solvency of insurers, Indian reinsurers, branch o\ufb03ces of foreign reinsurers and service companies representing syndicates of Lloyd\u2019s India are required to be calculated in accordance with the applicable regulations issued by the IRDAI. Insurers and reinsurers are required to maintain, at all times, a solvency margin of assets over liabilities of not less than 50% of the capital requirements for that insurer\/reinsurer. The required solvency margin is calculated based on mathematical reserves and the sum at risk. The IRDAI periodically specifies the factors that are to be considered in the calculation of the required solvency margin.<\/p>\n<p>In addition, an IIO in branch form is required to maintain solvency margin as specified by its home country regulatory\/supervisory authority. IIOs are also required to file quarterly certificates which affirm that the required assets, liabilities and solvency margin are being maintained by the parent entity\/head office. An IIO established in incorporated form is required to maintain such solvency margin as may be specified by the IFSCA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the minimum capital requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An insurer\/Indian reinsurer is required to have a minimum paid up equity share capital of INR 100 crore (c. US$10,806,780) and INR 200 crore respectively (c. US$21,613,560).<\/p>\n<p>The Amendment Act has reduced the minimum net owned fund requirement for branch o\ufb03ces of foreign reinsurers (including syndicates operating under Lloyd\u2019s India) from INR 5,000 crore (c. US$ 539,251,500) to INR 1,000 crore (c. US$107,850,300). The relevant provisions of the underlying IRDAI regulations are also expected to be aligned with this amended statutory position. The minimum assigned capital requirements of INR 50 crore (c. US$ 5,392,420) for branch offices of foreign reinsurers and INR 100 crore (c. US$ 10,806,780) for syndicates operating under Lloyd\u2019s India remain unchanged.<\/p>\n<p>An IIO established in branch form is required to maintain US$ 1.5 million (c. INR \u00a013.9 crores) as assigned capital in any freely convertible foreign currency, and is also required to maintain a minimum amount of INR 1000 crore (c. US$107,850,300) as net owned funds, which may be demonstrated in any freely convertible foreign currency and which is required to be maintained at all times during the subsistence and validity of the certificate of registration. An IIO established in incorporated form is required to comply with the paid-up equity capital requirements prescribed under Section 6(1) of the Insurance Act.<\/p>\n<p>Further, the minimum capital requirement for brokers is as follows:<\/p>\n<ul>\n<li>Direct brokers &#8211; INR 75 lakh (c. US$80,975).<\/li>\n<li>Reinsurance brokers &#8211; INR 4 crore (c. US$431,868).<\/li>\n<li>Composite brokers &#8211; INR 5 crore (c. US$539,572).<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a policyholder protection scheme in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IRDAI (Protection of Policyholders\u2019 Interests, Operations and Allied Matters of Insurers) Regulations 2024 (Policyholders Regulations) along with the \u201c<em>Master Circular\u00a0 on Operations and Allied Matters of Insurers<\/em>\u201d of 19 June 2024 and \u201c<em>Master Circular on Protection of Policyholders&#8217; Interests 2024<\/em>\u201d of 5 September 2024 issued by the IRDAI are the primary norms which set out guidance in relation to protection of policyholders\u2019 interests, among other matters.<\/p>\n<p>The Policyholders Regulations continue to prescribe the practices that are required to be undertaken by insurers and insurance intermediaries prior to and at the point of sale of an insurance policy to ensure that the policyholder understands the terms of the policy properly.<\/p>\n<p>In addition, the Policyholders Regulations require insurers to maintain a Board approved policy for the protection of policyholders\u2019 interests, which contains the claims procedure (including turnaround times) that is required to be followed by such insurer to ensure timely processing of claims.<\/p>\n<p>Insurers are also required to put in place proper grievance redressal procedures and mechanisms in accordance with their Board approved policy and other applicable provisions for the resolution of grievances of the policyholders.<\/p>\n<p>For IIOs in GIFT City, the IFSCA (Management Control, Administrative Control and Market Conduct of Insurance Business) Regulations 2023 as well as the IIO Guidelines require such entities to implement various policyholder protection mechanisms, including, <em>inter alia<\/em>, standard operating procedures on customer fairness and defined timelines for policy servicing and claims handling. In the case of an IIO established in a branch form, the IIO is also required to comply with the applicable laws and regulations of its home jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are groups supervised if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To avoid con\ufb02icts of interest, ordinarily, two entities from the same group are not permitted to undertake the same class of insurance business.<\/p>\n<p>There are some restrictions on insurance companies and insurance intermediaries operating in the same group, where the IRDAI has discretion (in some cases) to determine the scope of \u201c<em>group<\/em>\u201d:<\/p>\n<ul>\n<li>An Indian corporate group can have an insurance company and an insurance broker or a corporate agent within the same group, subject to certain conditions being fulfilled.<\/li>\n<li>Typically, within a group, the IRDAI will grant one certificate of registration to only one entity for insurance intermediation, unless a case on merits and with no conflict of interest is made before the IRDAI.<\/li>\n<li>A web aggregator cannot be a related party of an insurance company.<\/li>\n<li>There is no express restriction on insurance companies and surveyors operating in the same group, but the IRDAI is likely to view this as an inherent conflict of interest.<\/li>\n<li>There is no express restriction on insurance companies and TPAs operating in the same group.<\/li>\n<li>An insurance agent or director of an insurance intermediary is permitted to be a director of an insurance company, subject to certain conditions being fulfilled.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do senior managers have to meet fit and proper requirements and\/or be approved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All directors and key managerial personnel of insurers, reinsurance entities and insurance intermediaries are required to be compliant with the \ufb01t and proper criteria stipulated by the IRDAI under the respective regulations\/guidelines, and their appointment has to be either pre-approved by or notified <em>post facto<\/em> to the IRDAI. The IFSCA similarly requires that the IIO\u2019s key managerial personnel are compliant with its prescribed fit and proper criteria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent might senior managers be held personally liable for regulatory breaches in  your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IRDAI has been given extensive power under the Insurance Act, rules and regulations to investigate and examine the conduct of the key managerial personnel. For instance, Section 105A of the Insurance Act stipulates that where any offence has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. The IFSCA has been granted similar powers within the IFSC under the IFSCA Act.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum presence requirements in order to undertake insurance activities in  your jurisdiction (and obtain and maintain relevant licenses and authorisations)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Indian insurance companies, Indian reinsurers, branch offices of foreign reinsurers and insurance intermediaries are required to have at least one physical office in India in order to be considered for registration. This minimum requirement is to be maintained by each of these entities during the course of operations in India. In addition, Indian insurance companies and insurance intermediaries are required to have adequate branch office presence across India which is commensurate with their proposed plans for distribution of insurance products across various states\/cities in India. Further, one of the IRDAI&#8217;s considerations while considering an application for registering any of these entities is whether the applicant has adequate infrastructure and facilities to carry out the business.<\/p>\n<p>IIOs established in an incorporated as well as in a branch form are similarly required to have a physical office in GIFT City.<\/p>\n<p>CBRs are not required to have a physical office presence in India.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on outsourcing services, third party risk management and\/or  operational resilience requirements relating to the business?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The outsourcing of activities by Indian insurers\/reinsurers, branch o\ufb03ces of foreign reinsurers, service companies set up under Lloyd\u2019s India and IIOs are subject to the restrictions and compliances prescribed under applicable law, in relation to, <em>inter alia<\/em>, confidentiality and security requirements, due diligence of vendors and reporting of agreements and payouts. Broadly, these entities are prohibited from outsourcing their core functions (including underwriting, claim decisions and investments) to third party service providers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on the types of assets which insurers or reinsurers can invest in or  capital requirements which may influence the type of investments held?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, there are restrictions on the types of assets in which insurers and reinsurers can invest. Investments made by insurers and reinsurers are governed by the Insurance Act and the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations 2024 (Investment Regulations) along with the IRDAI\u2019s \u201c<em>Master Circular on Actuarial, Finance and Investment Functions of Insurers<\/em>\u201d of 17 May 2024. Recently, the Amendment Act has simplified the investment framework for insurers by removing Sections 27A to 27D of the Insurance Act and consolidating these provisions into a unified Section 27.<\/p>\n<p>While the Amendment Act continues to require that insurers and reinsurers invest as least a certain percentage of their assets in Government securities, other investment-related aspects will now be prescribed through regulations issued by the IRDAI. Further, the Amendment Act does not retain the earlier prohibition on insurers investing, out of their controlled funds or assets, in the shares and debentures of private limited companies.<\/p>\n<p>The investments made by IIOs are also subject to regulation. The investment norms set out under the IFSCA (Investment by International Financial Service Centre Insurance Office) Regulations 2022 (IIO Investment Regulations) are mandatorily required to be followed by IIOs in an incorporated form. An IIO in a branch form may either comply with the IIO Investment Regulations or may follow the investment norms applicable to its parent entity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there requirements or regulatory expectations regarding the management of an insurer's reinsurance risk, including any restrictions on the level \/ type of reinsurance utilised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Act requires all cedants to cede 4% of the sum insured as mandatory cession to the Indian reinsurance company and, thereafter, the Reinsurance Regulations require all cedants to seek best terms for their reinsurance placements by following the specified \u201c<em>order of preference<\/em>\u201d.<\/p>\n<p>A cedant is required to first offer its facultative and treaty surpluses to Indian reinsurance companies transacting reinsurance business during the immediate past three continuous financial years, and thereafter to certain IIOs (per their investment criteria) and branch offices of foreign reinsurers. The cedant may then proceed to offer the surplus to other IIOs, followed by CBRs and Indian insurance companies (only for facultative placements).<\/p>\n<p>Although the order of preference does not apply to Indian insurance companies transacting life insurance business, the Reinsurance Regulations require them to endeavour to utilise the Indian domestic capacity before offering reinsurance placements to CBRs. Life insurance companies are also required to obtain the prior approval of the IRDAI before entering into reinsurance arrangements with their promoter company, or associate or group companies, except where the arrangements are on commercially competitive terms and an arm\u2019s-length basis.<\/p>\n<p>While the terms and conditions of reinsurance agreements are not regulated, every Indian insurer is required to submit its annual Board approved reinsurance programme along with the retention policy with the IRDAI. In relation to reinsurers, the Reinsurance Regulations require every Indian reinsurer and branch offices of foreign reinsurers to file their Board approved underwriting policy with the IRDAI.<\/p>\n<p>IIOs are similarly required to submit their reinsurance strategy and reinsurance programme to the IFSCA. In this regard, the IIO Guidelines presently provide that an IIO permitted to transact reinsurance business shall not retrocede more than 50% of its reinsurance business. Further, IIOs may place reinsurance business only with foreign reinsurers that (i) are not from, and do not have promoters, partners or controlling shareholders in, jurisdictions identified by the FATF as having strategic anti-money laundering or counter-terrorist financing deficiencies to which counter-measures apply (or jurisdictions that have not made sufficient progress or commitment to an agreed action plan in addressing such deficiencies), and (ii) are based in jurisdictions that have entered into a Double Taxation Avoidance Agreement with India.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are sales of insurance supervised or controlled?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurers are permitted to solicit and procure insurance business either directly through their sales executives or through licensed insurance agents and insurance intermediaries. Insurers are prohibited from engaging unlicensed persons for soliciting and procuring insurance business or for providing introductions or leads.<\/p>\n<p>The IRDAI has also notified norms on the payment of commission to insurance agents and insurance intermediaries, where the total amount of commission permitted to be paid by insurers is required to be within the allowable limits of the expenses of management of the insurer, as specified under the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations 2024 and the IRDAI\u2019s \u201c<em>Master Circular on Expenses of Management, including Commission, of Insurers 2024<\/em>\u201d of 15 May 2024. Further, insurers are required to have a Board approved written policy on payment of commission to insurance agents and insurance intermediaries.<\/p>\n<p>IIOs are subject to more simplified requirements in relation to commission payments and expenses of management, as set out under the IFSCA (Management Control, Administrative Control and Market Conduct of Insurance Business) Regulations 2023.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is it possible to actively market the sale of insurance into your jurisdiction  on a cross border basis and are there specific or additional rules pertaining to distance selling or  online sales of insurance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In order to actively solicit and service insurance products in India, an entity must be licensed as an insurance intermediary with the IRDAI and such solicitation and procurement of insurance may only be undertaken in accordance with the regulatory framework applicable to the entity.<\/p>\n<p>In addition, insurers and insurance intermediaries are also permitted to sell and service insurance policies through recognised distance marketing modes per the \u201c<em>Guidelines on Distance Marketing of Insurance Products<\/em>\u201d and through Insurance Self-Network Platforms (ISNPs) in accordance with the \u201c<em>Guidelines on insurance e-commerce<\/em>\u201d.<\/p>\n<p>While the present RBI framework permits a person resident in India to take or obtain a general (including health) insurance policy issued by an overseas non-admitted insurer, provided the premium payments are within the overall limits prescribed by the RBI, the present statutory and regulatory framework remain silent on the manner in which such overseas insurance may be marketed, sold or serviced, or whether any Indian entity may assist such overseas insurer in servicing such insurance policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurers in your jurisdiction subject to additional requirements or duties in respect of  consumers? Are consumer policies subject to restrictions, including any pricing restrictions? If  so briefly describe the range of protections offered to consumer policyholders<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, all insurance policies are required to incorporate various customer protections, including but not limited to the following:<\/p>\n<ul>\n<li>The policy shall give details of the insurer\u2019s grievance redressal mechanism to enable policyholders to raise complaints against the insurers.<\/li>\n<li>The policy shall give details of the Insurance Ombudsman, who has been appointed by the Insurance Council to address complaints by the insured against the insurer, in relation to the settlement of claims.<\/li>\n<\/ul>\n<p>The Policyholders Regulations require insurers to settle the claims in a timely manner and in accordance with the turnaround times specified under such insurer\u2019s Board approved policy for protection of policyholders\u2019 interests.<\/p>\n<p>Further, the Policyholders Regulations provide, amongst other obligations, that insurers must follow certain practices at various stages ie, prior to sale, at the point of sale of the insurance policy, at the proposal stage, upon receipt of the policy document, during the policy term, and at the time of claim, to ensure that the insured can understand the terms of the policy properly and to safeguard the insured\u2019s rights. The present framework does not impose general pricing caps across retail\/consumer policies. However, such retail\/consumer products remain subject to the product filing and internal pricing governance framework prescribed by the IRDAI. Further, certain standard products continue to have prescribed features\/wordings.<\/p>\n<p>In addition to the above, the policyholder has an option of approaching the consumer courts to seek redressal of their disputes with the insurers.<\/p>\n<p>For IIOs, the IFSCA (Management Control, Administrative Control and Market Conduct of Insurance Business) Regulations 2023 as well as the IIO Guidelines require such entities to implement various policyholder protection mechanisms. In the case of an IIO established in a branch form, the IIO is also required to comply with equivalent policyholder protection requirements as mandated under the laws and regulations of their home jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory resolution regime applicable to insurers in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>India does not presently have a standalone resolution code for insurers equivalent to the ordinary corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016. Instead, financial distress in insurance companies is dealt with through the Insurance Act 1938 and IRDAI\u2019s regulatory powers, including intervention and management control powers. \u00a0If exit becomes necessary, winding up is by the NCLT under the Companies Act 2013.<\/p>\n<p>For completeness, appeals against orders issued and decisions made by the IRDAI may be preferred before the Securities Appellate Tribunal (SAT). Policyholder complaints are separately addressed through insurer grievance mechanisms, IRDAI\u2019s Bima Bharosa framework, and the Insurance Ombudsman offices constituted under the Insurance Ombudsman Rules 2017. Those are remedial\/appellate mechanisms, however, rather than a \u201c<em>resolution regime<\/em>\u201d for insurers in the sense of insolvency or distress.<\/p>\n<p>Apart from the regulatory framework of the IRDAI, insurance disputes are generally adjudicated in arbitration, commercial courts and consumer forums.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the courts adept at handling complex commercial claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Indian courts are well equipped to handle commercial claims. Civil courts in India broadly comprise District Courts, High Courts and the Supreme Court. There are approximately 743 District Courts, 25 High Courts and one Supreme Court, which is the highest court of law in India.<\/p>\n<p>Out of the 25 High Courts in India, the High Courts at Calcutta, Bombay, Madras, Himachal Pradesh, and Delhi have original jurisdiction to adjudicate matters, including commercial matters.<\/p>\n<p>In 2015, the Commercial Courts, Commercial Division &amp; Commercial Appellate Division of High Courts Act 2015 (Commercial Courts Act), was introduced which carves out special benches in all existing civil courts which will adjudicate commercial matters exclusively. Commercial courts have also been established at district levels in all jurisdictions, including territories where the High Courts have original civil jurisdiction. By providing for an exclusive forum, the Commercial Courts Act has expedited the litigation process for commercial disputes. Commercial disputes are referred to the commercial court having the requisite territorial and pecuniary jurisdiction. The specified value for such disputes is not to be less than INR 300,000.<\/p>\n<p>An amendment to the Commercial Courts Act in 2018 has provided mandatory mediation for parties before filing a commercial suit except where a party seeks urgent interim relief. The legislation is meant to speed up the adjudication process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution well established in your jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Indian jurisdiction recognises arbitration, conciliation, judicial settlement including settlement through Lok Adalat and mediation as means of alternative dispute resolution.<\/p>\n<p>The Arbitration and Conciliation Act 1996 (A&amp;C Act) governs arbitration in India, and is based on the UNCITRAL Model Law on International Commercial Arbitration of 1985. In 2023, the Mediation Act was introduced to strengthen the framework for alternative dispute resolution and facilitate mediation. The definition of mediation under the Act includes pre-litigation mediation, online mediation, community mediation, conciliation and expressions of similar import.<\/p>\n<p>While an arbitration seated in India between two Indian parties is classified as a domestic arbitration, an arbitration (even if it is seated in India) involving at least one foreign party is an International Commercial Arbitration (ICA). The Supreme Court has held in <em><u>PASL Wind Solutions Pvt Ltd v GE Power Conversion (India) Pvt Ltd<\/u><\/em>, 2021 INSC 264, that two Indian parties also have the autonomy to choose a foreign arbitral seat.<\/p>\n<p>The A&amp;C Act preserves party autonomy in relation to most aspects of arbitration, such as the freedom to agree upon nationality, number of arbitrators (as long as it is an odd number), the place of arbitration and the procedure to be followed by the arbitral tribunal. The principle of party autonomy has been confirmed by the Supreme Court in a number of cases. An arbitration agreement, as per the A&amp;C Act, needs to be in writing and should re\ufb02ect the intention of the parties to submit their dispute(s) to arbitration. However, there is no prescribed form of an arbitration agreement. An arbitration agreement can come into existence if it is contained in a subsequent exchange of letters, telex, telegrams, emails, or other means of telecommunication (including by electronic means), which provides a record of the intent to arbitrate.<\/p>\n<p>In the insurance context, however, the position is product specific. For general insurance, IRDAI\u2019s circular of 27 October 2023 (Circular) removed arbitration clauses from retail lines altogether. For commercial lines, the position under the Circular is that the parties may mutually agree and enter into a separate arbitration agreement, and any such arbitration is to be conducted under the A&amp;C Act. Accordingly, arbitration remains an established route for commercial insurance disputes, but it is no longer the default route for retail general-insurance policies.<\/p>\n<p>Indian courts are generally supportive of arbitration, and court intervention is limited to specified instances under the A&amp;C Act. The Constitution Bench of the Supreme Court, in <em><u>Cox and Kings Ltd v SAP India Pvt Ltd<\/u><\/em>, 2023 INSC 1051 has held that, in appropriate cases, an arbitration agreement can bind non-signatories as well by applying the \u201c<em>group of companies<\/em>\u201d doctrine. The doctrine provides that an arbitration agreement which is entered into by a company within a group of companies may bind non-signatory affiliates if there is a mutual intent or consent to bind such a party. Mutual intent or consent is usually determined by factors such as the role played by the non-signatory in negotiations, performance and termination of the agreement, and is not an automatic consequence of corporate affiliation. The issue of impleadment of a non-party can be determined either by the Court at the referral stage or later by the arbitral tribunal. Notably, in <em><u>ASF Buildtech (P) Ltd v Shapoorji Pallonji &amp; Co (P) Ltd<\/u><\/em>, 2025 SCC OnLine SC 1016, the Court, while recognising the need for arbitration law to respond to complex contractual structures, referred to reinsurance contracts as one such context where the Group of Companies doctrine could be potentially applied. While the dispute itself did not arise out of a reinsurance arrangement, the reference is noteworthy from an insurance and reinsurance perspective as it hints that non-parties (reinsurers\/retrocessionaires) may be joined to arbitrations between the Cedant and the Original Insured.<\/p>\n<p>Further, in relation to domestic arbitration, the A&amp;C Act bars the intervention of the courts except for some speci\ufb01c instances where the courts are allowed to intervene \u2013 for example, for interim relief, reference to arbitration when an action has been instituted before the court for the appointment of arbitrators, where parties have failed to nominate arbitrators within the stipulated time frame, a party can also seek the court\u2019s assistance for recording evidence. With a view to strengthen institutional arbitration in India, the 2019 amendment in the A&amp;C Act contemplates appointment of arbitrators by arbitral institutions. However, this provision is yet to be notified for it to come into effect. Similarly, the deletion of Section 11(6A) of the A&amp;C Act which deals with appointment of arbitrators by the Court is yet to be notified. The Supreme Court in <em><u>SBI General Insurance v Krish Spinning<\/u><\/em>, 2024 INSC 532, while dealing with a discharge voucher executed between an insurer and insured, clarified that the scope of enquiry by the referral court under Section 11(6A) of the A&amp;C Act is limited to a <em>prima facie<\/em> evaluation of the existence of an arbitration agreement and it need not include a surgical scrutiny of the specific facts of the case, including the merits of the insurance claim, leaving that to the discretion of the arbitrator.<\/p>\n<p>Increasingly, arbitration is a preferred mechanism for settlement of commercial disputes in this jurisdiction. Arbitrations are required to be completed within the prescribed timelines. Pleadings are to be completed within six months from the date on which the arbitrator(s) receives the notice of appointment in writing, and in case of domestic arbitrations, the arbitral award shall be made within twelve months from the date of completion of pleadings. This period can be extended by another six months upon the consent of the parties, but any further extensions can only be granted by a court. These timelines, however, do not strictly apply to an ICA. Additionally, the parties can also choose to conduct arbitration proceedings in a fast-track manner, with the award being issued within six months.<\/p>\n<p>A regime for granting costs of the arbitration proceedings to a successful party has also been set out in the A&amp;C Act. The A&amp;C Act also prescribes the model fee to be paid to an arbitrator.<\/p>\n<p>An arbitration award is final and binding on the parties and the courts generally refrain from interfering in arbitrations or arbitration awards and uphold the sanctity of the arbitration agreement and arbitration awards.<\/p>\n<p>The recourse provided against an arbitral award is limited in scope and confined to specified grounds under the A&amp;C Act. Notably, once a challenge to the award is disposed of, any subsequent appeal(s) is also limited in scope and once the time for challenging the award has expired, the award becomes enforceable in the same manner as if it were a decree of the court. The Constitution Bench of the Supreme Court in\u00a0<em><u>Gayatri Balasamy v ISG Novasoft Technologies Ltd<\/u><\/em>, (2025) 7 SCC 1 has held that courts can also modify an arbitral award but only to the limited extent where the award is severable and\/or the modification is limited to the award of interest and\/or clerical, computational or typographical errors.<\/p>\n<p>The Government of India had also released the Draft Arbitration and Conciliation (Amendment Bill) 2024 for further amendments to the A&amp;C Act which continues to be under consideration. A few notable amendments which have been proposed are introduction of emergency arbitration, omission of the fee schedule for arbitrators under the A&amp;C Act, introduction of appellate tribunals and promotion of institutional arbitrations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a statutory transfer mechanism available for sales or transfers of books of  (re)insurance? If so briefly describe the process<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Indian law provides a statutory mechanism for the transfer or amalgamation of insurance business under sections 35 to 37A of the Insurance Act 1938, read with the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations 2024<\/p>\n<p>In broad terms, no insurance business of an insurer may be transferred to, or amalgamated with, the insurance business of another insurer except under a scheme prepared under section 35 and approved by IRDAI. Before making the application, the parties must give at least two months\u2019 notice to IRDAI and make available for inspection the draft agreement\/deed, balance sheets, relevant actuarial material, an independent actuary\u2019s report, and other foundation reports. Once the application is made, IRDAI must give notice to policyholders, direct publication of the nature and terms of the transaction, hear the directors, and consider objections from policyholders and other persons it considers entitled to be heard before approving the arrangement and making consequential orders.<\/p>\n<p>After completion, section 37 requires post-closing filings with IRDAI within three months. Separately, section 37A empowers IRDAI itself to frame a compulsory amalgamation scheme in specified circumstances, including where this is necessary in the public interest, in the interests of policyholders, for proper management of an insurer, or in the interest of the insurance business of the country as a whole.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the primary challenges to new market entrants? Are regulators supportive (or  not) of new market entrants?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Amendment Act received the assent of the President on 20 December 2025 and came into force on 5 February 2026. It introduces significant reforms to India\u2019s insurance framework, many of which are designed to promote greater flexibility and ease of doing business. At the same time, certain parts of the extant regulatory framework are yet to be aligned with the amended statutory position, and additional subordinate legislation \/ regulatory changes may be required in certain areas. Some examples of the reforms already introduced include the following:<\/p>\n<ul>\n<li>Section 3AA of the Amendment Act permits aggregate foreign investment, including by foreign portfolio investors, in an Indian insurance company up to 100% of its paid-up equity capital, subject to prescribed conditions.<\/li>\n<li>Section 6(2) of the Amendment Act reduces the minimum net owned funds requirement for branch offices of foreign reinsurers from INR 5,000 crore (c. US$ 539,251,500) to INR 1,000 crore (c. US$107,850,300).<\/li>\n<li>The Amendment Act simplifies the investment framework for insurers by removing Sections 27A to 27D of the Insurance Act and consolidating these provisions into a unified Section 27.<\/li>\n<li>Section 42D of the Amendment Act removes the statutory three-year registration cycle for insurance intermediaries. This was followed by an IRDAI circular of 16 March 2026 titled \u201c<em>Transitional arrangements for payment of Annual Fee and issuance of Certificate of Registration pursuant to the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025<\/em>\u201d. The circular, <em>inter alia<\/em>, discontinues the three-year validity period of licences, providing instead that a licence shall continue to remain valid unless suspended or cancelled by the IRDAI, subject to the payment of an annual fee.<\/li>\n<li>Section 2 of the Amendment Act introduces new definitions, such as of \u201c<em>insurance business<\/em>\u201d and \u201c<em>insurance contract<\/em>\u201d, and also simplifies existing definitions, such as \u201c<em>health insurance business<\/em>\u201d, \u201c<em>Indian insurance company<\/em>\u201d, and \u201c<em>insurer<\/em>\u201d.<\/li>\n<li>Section 2(10B) of the Amendment Act introduces the definition of \u201c<em>insurance intermediary<\/em>\u201d in the Insurance Act, and in doing so, expressly recognises MGAs as a distinct category of insurance intermediary.<\/li>\n<\/ul>\n<p>In addition to the above, the IRDAI has taken several steps towards amending the existing regulatory framework with the objectives of promoting the ease of doing business in India and increasing insurance penetration across India. In this regard, the IRDAI has conducted several sessions with market players to identify steps for the healthy growth of the insurance industry, improving claim settlement timelines, speedy redressal of grievances, policyholder welfare, rationalising the regulatory framework, and potentially reducing the compliance burden, and has identified various areas in the existing legal\/regulatory architecture for internal review. Accordingly, the IRDAI introduced eight principle-based consolidated regulations based on a comprehensive review of the insurance regulatory framework. The following are some additional steps already taken by the IRDAI to ease the compliance requirements of insurers and reinsurers and facilitate new entities to enter the Indian insurance industry:<\/p>\n<ul>\n<li>By way of various circulars, the IRDAI has relaxed various filing and reporting requirements for insurers and branch offices of foreign reinsurers.<\/li>\n<li>Major changes have been brought about in the product filing procedure where insurance companies are now permitted to launch most of their insurance products through self-certification.<\/li>\n<li>The limits on commission payable to insurance intermediaries by insurance companies have been lifted by way of the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations 2024. Further, the management of general and health insurance companies\u2019 overall expenses are now subject to overarching limits, which replaced specific limits on expenses that were previously permitted to be incurred on various lines of insurance business.<\/li>\n<li>The IRDAI has introduced a new and simplified \u201c<em>order of <\/em><em>preference<\/em>\u201d for cedants while placing reinsurance business, where the branch offices of foreign reinsurers and certain IIOs are placed in the same category after Indian reinsurance companies.<\/li>\n<li>Previously, insurers were required to comply with the tariff wordings for certain classes of insurance business such as fire insurance, motor and engineering. However, in 2024, the IRDAI has de-notified the tariff wordings for all such products.<\/li>\n<\/ul>\n<p>In addition, the IFSCA framework in GIFT City offers a relatively simplified (and parallel) route for IIOs and IIIOs seeking to undertake international insurance business from India.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is the market being challenged by digital innovation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With the signi\ufb01cant increase in e-commerce transactions over the years, the IRDAI has recognised the sale and servicing of insurance products online and the issuance of e-insurance policies. The insurance sector is continuously adapting to various technological advancements such as AI, data analytics and digital marketing, vis-\u00e0-vis claims, underwriting, policyholder communication\/grievance management, digilockers for maintenance of records and data and various data security and protection measures.<\/p>\n<p>The IRDAI has also issued specific norms on, <em>inter alia<\/em>, information asset management, data security, application security, endpoint security, cloud security and incident management, which are required to be complied with by Indian insurers and insurance intermediaries. Indian insurers are also utilising applications, artificial intelligence, telematics and Internet of Things (IoT) and other insurtech products, thereby transforming the manner of distribution and servicing of insurance business in India.<\/p>\n<p>The IRDAI also introduced the IRDAI (Regulatory Sandbox) Regulations 2025 (Sandbox Regulations) updating the earlier sandbox guidance which aim to create a regulatory sandbox environment to test new business models, processes, proposals, and applications, with the goal of balancing the orderly development of the insurance sector and the protection of policyholders&#8217; interests. In the past few years, the IRDAI has approved various proposals under the Sandbox Regulations, including wellness and fitness trackers through wearable devices, claims and collision estimation by using AI, digital wallets and specialised insurance products.<\/p>\n<p>The IRDAI has also issued the IRDAI (Bima Sugam \u2013 Insurance Electronic Marketplace) Regulations 2024 which require insurers to jointly set up an insurance electronic marketplace called \u201c<em>Bima Sugam<\/em>\u201d. Bima Sugam is meant to be a digital platform facilitating, <em>inter alia<\/em>, the purchase, sale and servicing of insurance policies, settlement of insurance claims, grievance redressal and such other related matters as may be permitted by the IRDAI.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the digitization of insurance sales and\/or claims handling treated in your  jurisdiction, for example is the regulator in support (are there concessions to rules being made) or  are there additional requirements that need to be met?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IRDAI has over the past few years been issuing a series of norms that indicate a shift towards the digitalisation of various stages in the insurance sales and servicing process:<\/p>\n<ul>\n<li>With the significant increase in e-commerce transactions over recent years, the IRDAI has recognised the sale and servicing of insur\u00adance products online as well as the issuance of e-insurance policies. The IRDAI\u2019s \u201c<em>Guidelines on Insurance e-commerce\u201d <\/em>lay down provisions for setting up insurance self-network platforms by insurers and insurance intermediaries, for undertaking the sale and servicing of insurance activities in India.<\/li>\n<li>The IRDAI recently issued \u201c<em>Information and Cyber Security Guidelines 2026<\/em>\u201d on 6 April 2026 (Cybersecurity Guidelines), which repeal earlier cybersecurity guidance and set out the norms on, <em>inter alia<\/em>, information asset management, data security, application security, endpoint security, cloud security and incident management, which are required to be complied with by insurers, reinsurers and intermediaries.<\/li>\n<li>The IRDAI has issued guidance on the participation of Indian insurance companies and insurance repositories in the RBI\u2019s account aggregator framework, which is a digital platform for sharing financial information, such as information in relation to insurance policies by insurance companies and insurance repositories with customers and other financial information users. Under this framework, insurance companies and insurance repositories are required to adopt \u201c<em>technical specifications<\/em>\u201d and information technology framework to ensure a secure flow of data.<\/li>\n<li>The Policyholders\u2019 Regulations now mandatorily require every insurer to issue insurance policies in electronic form, irrespective of the mode of receipt of proposal form. The IRDAI may allow exemptions to this requirement in the policyholders\u2019 interest or for orderly growth of insurance industry.<\/li>\n<li>The IRDAI issued a circular of 6 January 2026 requiring all insurers and insurance intermediaries to implement the TRAI directions relating to mandatory adoption of the 1600-series numbering for all service and transactional voice calls.<\/li>\n<li>The IRDAI Circular on \u201c<em>One-time Mandate for blocking the amount towards premium through Unified Payments Interface (UPI mandate) for issuance of life and health insurance policies- Bima-ASBA<\/em>\u201d of 18 February 2025 permits insurers to use a digital payment facility allowing users to block funds in their bank accounts for payment of premium, while deferring actual debit until issuance of the policy.<\/li>\n<\/ul>\n<p>In addition to the above, in the Indian insurance market, many insurers have made efforts to update their business methods by utilising various forms of insurtech and have collaborated with various technology companies to develop websites and mobile applications to facilitate the sale and ser\u00advicing of insurance policies online, which include digitising customer verification, underwriting, premium payment and claims-processing func\u00adtions, and to automate the policy-issuance and claims-settlement processes. Apart from these, insurers are also exploring insurtech solutions for tracking user\u2019s health, cargo, theft, hijack attempts, and more. Additionally, the IRDAI conducts \u201c<em>open houses<\/em>\u201d (on a monthly basis) in order to invite solutions\/ideas from insurtech\/fintech entities for various insurance-related activities, which may help insurers provide better services to policyholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is insurers' use of customer data subject to rules or regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Policyholders Regulations require insurers and insurance intermediaries to maintain all policyholder data as confidential and in a protected manner. In addition, the Cybersecurity Guidelines also stipulate various requirements on protection of data and maintaining cyber security of its systems. IIOs are also subject to similar confidentiality and cybersecurity requirements.<\/p>\n<p>The amended Insurance Act now also contains a more stringent statutory framework in relation to policyholder information. In particular, Section 14 requires insurers to maintain complete records of policies and claims in electronic form, and further requires concurrent submission of such records to the IRDAI or any entity regulated and authorised by it, in the manner specified. Sections 14A to 14C further empower the IRDAI to regulate the processing of policyholder information and documents, including that such information be maintained with the utmost confidentiality and security.<\/p>\n<p>Further, the Digital Personal Data Protection Act 2023 (DPDP Act) and the recently notified Digital Personal Data Protection Rules 2025 (DPDP Rules) establish India\u2019s first comprehensive data protection and privacy legislation. The Government of India has adopted a phased implementation approach through notifications under the DPDP Act. Based on notifications issued as of date, the framework is expected to be operationalised in stages, with early provisions relating to the constitution of the Data Protection Board of India coming into force first in November 2026, followed over time by consent manager requirements and core compliance obligations to come into force by May 2027.<\/p>\n<p>The DPDP Act and DPDP Rules provide guidance in relation to, <em>inter alia<\/em>, grounds for processing of personal data, rights and duties of a Data Principal, obligations of a Data Fiduciary, contractual requirements for engaging a Data Processor, manner of adjudication and appeal, and penalties for non-compliance\/breach of the DPDP Act\u2019s provisions. The Government may designate certain entities as Significant Data Fiduciaries (SDFs) based on factors such as the volume and sensitivity of personal data processed, and potential impact on national security. The list of entities to be classified as SDFs has not yet been notified by the Government.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are there additional restrictions or requirements on sharing customer data  overseas\/on a cross-border basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the DPDP Act, the transfer of personal data outside India is generally permitted, except to such country or territory outside India as may have been blacklisted by the Central Government. The DPDP Act also mandates the primacy of any Indian law that provides for a higher degree of restriction on transfer of personal data outside India.<\/p>\n<p>In the insurance sector, however, the position is also shaped by the amended Insurance Act and regulatory norms. The regulatory requirement in India a that all insurers shall maintain complete confidentiality of policyholders\u2019 data. Further, data pertaining to all policies issued and all claims made in India has to be held in data centres located and maintained in India. IIOs are also subject to similar confidentiality and data hosting requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are insurers subject to ESG regulation or oversight? Are there regulations\/requirements, including in connection with managing climate change and climate  change related financial risks specific to insurers? If so, briefly describe the range of measures  imposed.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The IRDAI (Corporate Governance for Insurers) Regulations 2024 (CG Regulations) along with the IRDAI\u2019s \u201c<em>Master Circular on Corporate Governance for Insurers 2024<\/em>\u201d of 22 May 2024 require insurers to maintain a Board approved \u201c<em>Environmental, Social and Governance<\/em>\u201d (ESG) framework and also require the insurer\u2019s Board to establish a comprehensive \u201c<em>Climate Risk Management<\/em>\u201d framework, which facilitates the insurer\u2019s climate risk management as per its size, nature and complexity of operations. Similar ESG and climate risk management requirements are also set out for branch offices of foreign reinsurers and Lloyd\u2019s India under the Reinsurance Master Circular.<\/p>\n<p>Insurers also have a statutory obligation to undertake a certain amount of insurance business in rural and social sectors in accordance with applicable regulatory norms. Recently, the IRDAI has constituted a committee to suggest and develop \u201c<em>affordable, accessible and comprehensive cover for rural population, on benefit based \/ parametric structure<\/em>\u201d and suggest on \u201c<em>women centric distribution channel to focus on reaching untapped\/rural areas<\/em>\u201d.<\/p>\n<p>Further, the company law framework also requires companies whose net worth is more than INR 500 crore (c. US$ 53,957,200), or turnover is more than INR 1000 crore (c. US$ 107,850,300) or net profit is more than INR 5 crore (c. US$ 539,572), to undertake Corporate Social Responsibility (CSR) activities, and insurers who fall within this category will be required to undertake CSR activities in the prescribed manner. The IRDAI has also issued a circular to encourage insurers to invest in Sovereign Green Bonds (SGBs) issued by the Indian Government with an objective to reduce the carbon intensity of the economy. The IRDAI has specified that the investment in SGBs by insurers shall be treated as investment in infrastructure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory framework in respect of diversity and inclusion to which  (re)insurers in your jurisdiction are subject?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is presently no separate insurance-specific framework in India dealing exclusively with diversity and inclusion. However, the Indian company law framework requires every Indian insurance company to have at least one woman director on its Board.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Over the next five years what type of business do you see taking a market lead?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The following types of insurance businesses may potentially be of significance over the next few years:<\/p>\n<ul>\n<li>Purchase of third-party motor insurance is a mandatory requirement under the Indian law, and with year-on-year increase in the sale of automobiles, the sales of motor insurance policies will also correspondingly rise in significance.<\/li>\n<li>With the recent introduction of surety insurance contracts in Indian insurance market, as an alternative to bank guarantees, these insurance policies may grow in popularity in the coming years.<\/li>\n<li>Recently, several insurers have been launching cyber insurance focussed on individual retail customers and these policies are likely to be of significance in the coming years.<\/li>\n<li>With the continued development of GIFT City as an international insurance and reinsurance hub, cross-border reinsurance, specialty risks and overseas placed insurance lines are also likely to gain further significance over the next few years.<\/li>\n<li>The IRDAI de-notified the tariff wordings for classes of insurance business such as fire insurance, motor, engineering and therefore, we are likely to see more variations in terms of such policies.<\/li>\n<li>The Amendment Act now defines \u201c<em>insurance business<\/em>\u201d, and this definition includes any other form of contract as may be notified by the Central Government in consultation with the IRDAI. It is therefore expected that additional forms of insurance business are to be recognised, and may include certain value added services.<\/li>\n<li>The inclusion of MGAs within the definition of \u201c<em>insurance intermediaries<\/em>\u201d under the Amendment Act is expected to facilitate the introduction of a dedicated regulatory framework governing the activities of this class of intermediary. MGAs are likely to alter the manner in which insurance business is originated and distributed in India, particularly in specialised and emerging lines such as cyber risk and warranty and indemnity insurance.<\/li>\n<\/ul>\n<p>In addition, the IRDAI (Insurance Products) Regulations 2024 has introduced \u201c<em>index linked life insurance products<\/em>\u201d where the benefits under a policy are directly linked to a publicly available index.<\/p>\n<p>With regard to claims, while the focus used to be on more traditional lines of insurance (such as catastrophe, life, health and motor insurance), over the past decade or so the Indian insurance market has evolved and liability products such as PI, D&amp;O, cyber policies and EPL have come to the forefront. There is familiarity and demand for these products and consequently significant claims activity. Among liability products, the past five years show there has been a steady upward trend in claims made under PI and cyber policies, and this remains the busiest claims area, followed closely by D&amp;O.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">9805<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/140018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=140018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}