Why is Insurance Company Compliance Required?

IRDA compliance is crucial for several reasons:

• Registration Assurance: Ensures that the insurance company is registered according to regulatory requirements.
• Claims Handling: Facilitates the settlement of claims and grievances from policyholders.
• Policyholder Interests: Protects the interests of policyholders.
• Monitoring Systems: Establishes a proper system for monitoring insurance companies.
• Foreign Exchange Regulations: Ensures compliance with the Foreign Exchange Management Act (FEMA) for foreign investments.

Who Regulates IRDA Compliance?

The primary authority overseeing IRDA compliance for insurance companies in India is the Insurance Regulatory and Development Authority of India (IRDAI). The foundational laws include:

• Insurance Act, 1938
• IRDA Act, 1999

Additional regulations may be enforced by various other authorities:

• Companies Act, 2013: For corporate governance and company registration.
• FEMA: For foreign exchange regulations, overseen by the Reserve Bank of India (RBI).
• E-Commerce Compliance: Governed by IRDA guidelines for internet insurance activities.

Eligibility Criteria for Insurance Company Compliance

To conduct insurance business, a company must meet specific eligibility criteria:

1. Company Registration: Must be established as a public company under the Companies Act.
2. Minimum Capital Requirements:
• Life Insurance: ?100 crores
• Reinsurance: ?200 crores
3. Compliance with Insurance Laws: Must adhere to relevant insurance regulations and requirements.

Insurance Company Compliance Requirements

1. Company Setup and Governance

• Register as a public company under the Companies Act.
• File necessary resolutions, declarations, and annual filings with the Ministry of Corporate Affairs.

2. E-Commerce Compliance

• Obtain prior permission to set up an independent Insurance Self Network Platform (ISNP).
• Submit application in Form ISNP-1 and pay a non-refundable fee.
• Ensure the website aligns with IRDA guidelines regarding pricing and information transparency.

3. Reporting Obligations

Insurance companies must file various reports:

• Quarterly and monthly reports
• Annual performance reports, including risks and management details
• Ensure adherence to solvency margin ratios.

4. Compliance under FEMA

Insurance companies with foreign investments must comply with FEMA regulations, including annual reporting to the RBI.

Documentation Required for Insurance Company Compliance

For E-Commerce Insurance Business

• Form ISNP-1
• KYC Documents
• Application fee
• Company Law Documentation:
• Identity and address proofs of directors and shareholders
• Memorandum and Articles of Association
• IRDAI Documentation:
• Evidence of minimum capital requirements
• Details about directors' qualifications and share capital distribution

How Can Compliance Calendar LLP Help?

Compliance Calendar LLP offers comprehensive assistance for insurance companies to ensure they meet all IRDA compliance requirements. Our services include:

• Monitoring and tracking application statuses.
• Providing post-engagement support for compliance needs.