Insurance Newsletter – October 2015

"CONTROLLED" CLARIFIED – CHANGING RULES OF THE GAME?

The Insurance Regulatory and Development Authority of India ("IRDAI") has issued Guidelines ("Guidelines") on 19 October 2015 to further clarify "Indian Owned and Controlled" requirement for Indian insurance companies. As previously reported in our newsletters, the cap on foreign investment in Indian insurance companies ("Insurers") has been increased to 49% (from the earlier 26%) subject to them being "Indian owned and controlled, in such manner as may be prescribed". Earlier this year, the Central Government had issued¹ the Indian Insurance Companies (Foreign Investment) Rules, 2015 ("Rules") to prescribe the manner of ownership and control of Insurers² as defined under the amended (Indian) Insurance Act, 1938 ("Amended Act").