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Tag: IRDAI

IRDAI issues draft guidelines on trade credit insurance

IRDAI issues draft guidelines on trade credit insurance

Finance
IRDAI on Wednesday proposed a regulatory framework to facilitate general insurance companies to offer trade credit insurance covers to suppliers as well as licensed banks and other financial institutions to help businesses manage country risk. Trade credit insurance protects businesses against the risk of non-payment for goods and services by buyers. It usually covers a portfolio of buyers and indemnifies an agreed percentage of an invoice or invoices that remain unpaid as a result of protracted default, insolvency / bankruptcy. Based on the recommendations of a working group on revisiting guidelines on trade credit insurance, the Insurance Regulatory and Development Authority of India (IRDAI) has now come up with draft guidelines on trade credit insurance. IRDAI said the proposed guidel...
IRDAI approves Axis-Max Life deal

IRDAI approves Axis-Max Life deal

Finance
The Insurance Regulatory and Development Authority of India (IRDAI) has approved Axis Bank’s proposal to acquire 12% stake in Max Life along its subsidiaries Axis Capital and Axis Securities, Max Financial said in a statement on Wednesday. As per the proposed transaction, Axis Entities have the right to acquire up to 19% stake in Max Life, of which, Axis Bank proposes to acquire up to 9%, and Axis Capital Limited and Axis Securities Limited together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction. In addition, Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years. As per terms of the original deal Axis Bank in April 2020...
Irdai cautions public not to fall prey to fraud by Digital National Motor Insurance

Irdai cautions public not to fall prey to fraud by Digital National Motor Insurance

Finance
NEW DELHI: Insurance sector regulator Irdai has cautioned the general public against falling prey to fraud and cheating by Digital National Motor Insurance in selling policies without a license. It has been brought to the notice of Irdai that an entity by the name of Digital National Motor Insurance operating from Bangalore has been selling insurance policies, although it has not been licensed or granted registration by the authority to sell insurance policy of any kind, the regulator said in a public notice. The company's website is https://dnmins.wixsite.com/dnmins. The email-id of the entity is digitalpolicyservices@gmail.com. "The Authority cautions the public not to make any transaction related to insurance business with M/s DIGITAL NATIONAL MOTOR INSURANCE," Insurance Regulatory a...
IRDAI imposes Rs 15 lakh penalty on Bharti AXA General Insurance Company

IRDAI imposes Rs 15 lakh penalty on Bharti AXA General Insurance Company

Finance
Regulator Irdai has imposed a total penalty of Rs 15 lakhs on Bharti AXA General Insurance Company in two different cases for violation of various provisions concerning motor insurance. In this first case, the Insurance Regulatory Development Authority of India (Irdai) slapped a penalty of Rs 10 lakh on the private sector insurance company for non-compliance with minimum obligations under regulations concerning third-party motor insurance business. It was alleged that during 2017-18, the private sector insurer has underwritten Rs 380 crore as against the minimum obligatory motor third-party insurance business of Rs 399.94 crore, resulting in a shortfall of Rs 19.94 crore. In percentage terms, the shortfall worked out to around 4.99 per cent of the motor-third party insurance business obli...
IRDAI issues exposure draft on compensating shareholder on merger of insurers

IRDAI issues exposure draft on compensating shareholder on merger of insurers

Finance
NEW DELHI: Regulator IRDAI has come out with draft regulations for determination of compensation to shareholders on merger of insurance companies, under which payment will be based on the residual value of assets. "...compensation to the shareholders whose rights against the acquiring insurer has been reduced...shall be paid based on the residual value of the assets," said the exposure draft on which the Insurance Regulatory and Development Authority of India (IRDAI) has invited comments from the stakeholders by November 20. The residual value, it added, will be equal to the value of the assets of the acquired insurer as on the day immediately before the appointed day, less the total amount of liabilities. Further, the compensation shall be "paid either in cash and/or in kind or partially ...