IRDAI: Walking The Talk?

• IRDAI provides clarity on the 'Indian ownership and control' test required to be met by all Indian insurance companies and insurance intermediaries.
• Defines 'Control' to mean the right to appoint a majority of the directors or control the management or policy decisions.
• Provides a compliance window till February13, 2016 to comply with the guidelines which may be extended for another period of 3 months upon request being made to the IRDAI.
• IRDAI allows Indian insurance companies to issue preference shares and debentures, subject to prior approval from the IRDAI and certain restrictions on the terms of such instruments.

In a move to liberalize the insurance sector, the Insurance Laws (Amendment) Act, 2015 ("2015 Act") was notified in March, 2015. The 2015 Act, amongst other things, increased the foreign investment limit in Indian insurance companies and allowed Indian insurance companies to issue 'other forms of capital' as may be prescribed by