IRDAI has issued Insurance Regulatory and Development Authority (Regulations of Insurance Business in Special Economic Zone) Rules, 2015 (“IRDAI SEZ Rules”). IRDAI SEZ Rules permits insurer registered with IRDAI and insurer registered with foreign authority to transact the business of insurance and re-insurance within SEZ, domestic tariff area (“DTA”) and abroad. It further allows insurer and re-insurers to accept reinsurance business of all classes of business within SEZ and from insurers operating in DTA as well as from outside the country in accordance with the IRDAI regulations on re-insurance.
Recently, IRDAI inserted new Rule 4 to IRDAI SEZ Rules whereby permission have been granted to an intermediary registered with IRDAI or an intermediary from outside the country, to transact business as an intermediary or insurance intermediary in the SEZ subject to certain conditions.
Further, IRDAI has also notified the IRDAI (Registration and Operation IFSC Insurance Office) Guidelines, 2017 (‘IRDAI IFSC IIO Guidelines’) in exercise of the power conferred by Rule 3 of IRDAI (RIB) Rules, 2015 read with SEZ Act. The IRDAI (Registration and Operations of IFSC IIO) Guidelines aims to put in place the mandatory requirement of making registration in order for obtaining authorization to act as Insurance Intermediary offices in IFSC. The process of registration and operations of insurers, reinsurers in IFSC SEZ is framed in alignment with the objectives of IFSC SEZ.
IRDAI IFSC IIO Guidelines provides that the applicant willing to undertake operations as Insurance Intermediary offices in IFSC may register itself as any of the 5 categories of intermediary viz. Insurance Broker, Corporate Agent, Surveyor and Loss Assessor, Third Party Administrator and any other category of intermediary recognised by the IRDAI from time to time. The Insurance Intermediary offices in IFSC registered with IRDAI shall ensure compliance to certain minimum regulatory requirements, inter alia, scope of operations, accounting and foreign exchange requirements. The Insurance Intermediary offices in IFSC will also be responsible for discharge of the duties, functions and obligations as per applicable extant regulations, circular or guidelines notified by the IRDAI.
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