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Date: 2017-12-21 Category: Not Applicable State: Union Government Country: India

Insurance Regulatory and Development Authority of India {Registration and Operations of International Financial Service Centre Insurance Offices(IIO)} Guidelines, 2017

Issued by International Financial Services Centres Authority · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The document provides the "Insurance Regulatory and Development Authority of India {Registration and Operations of International Financial Service Centre Insurance Offices (IIO)} Guidelines, 2017". These guidelines aim to establish the process for registration and operation of insurers and reinsurers in IFSC Special Economic Zones. They came into force from the date of notification. The document includes various annexures of forms and formats for application. **Key Points / Main Content** * **Chapter I - Introduction** * The guidelines are issued under the authority of the IRDAI Act, Special Economic Zones Act, and related rules. * The objective is to put in place the registration and operations of insurers/reinsurers in IFSC Special Economic Zones in alignment with IFSC-SEZ. * Defines key terms such as 'Act', 'Applicant', 'Authority', 'Certificate', 'Domestic Tariff Area', 'Foreign insurer or reinsurer', 'Indian insurer', 'International Financial Service Centre', 'International Financial Service Centre Insurance Office', 'Net Owned Fund', 'Special Economic Zone', etc. * **Chapter II - Registration** * Outlines the registration process for IIOs. * Specifies that an IIO's sole object is insurance/reinsurance business from an IFSC. * Defines permissible business activities. * Lists classes of insurance business for which an IIO can be registered: Life, General, Health, and Reinsurance. * Specifies capital requirements, including minimum assigned capital and Net Owned Fund (NOF). * Sets non-refundable application processing fee of INR 50,000. * Sets annual fee of INR 1 Lakh, to be paid before 31st January. * Specifies Eligibility Criteria for Registration of IIO. * Specifies Application for Registration of IIO. * **Chapter III - Grant of Registration** * Outlines considerations for granting a Certificate of Registration, including performance record, infrastructure, and management capabilities. * Specifies factors that may lead to refusal of registration, such as misrepresentation of facts or failure to fulfill requirements. * **Chapter IV - Post-Registration** * Describes the process for issuing a duplicate Certificate of Registration (Form C, C1). * Explains the procedure for voluntary surrender of the Certificate of Registration. * Details conditions under which the Authority may revoke, suspend, or cancel a Certificate of Registration. * Specifies the effect of revocation, suspension, cancellation, or voluntary surrender. * **Chapter V - Operational Guidelines** * Requires IIOs to commence operations within twelve months of registration. * Requires IIOs to display name, address and IRDAI registration number in public domain. * Mandates that monetary transactions be in foreign currency. * Specifies appointment, reappointment, removal and managerial remuneration of Principal Officer. * Sets limits on retrocession. * Requires a separate statement of assets, liabilities, and solvency margin. * Details repatriation of surplus. * Requires delegation of authority to be exercised prudently. * Requires supervision and control. * Requires specific reporting requirements to the Authority. * **Miscellaneous Provisions** * Includes Authority's power to inspect. * Includes Repeal and Savings. * Includes Power of the Authority to issue clarifications etc. **Impact Analysis** * **Applicants (Indian and Foreign Insurers/Reinsurers):** * **Impact:** Must meet the eligibility criteria and comply with all application requirements to obtain IIO registration for operating in IFSC-SEZs. * **Action Required:** Submit a complete application, including required documents (Form A, B), and pay the necessary fees. * **Existing IIOs:** * **Impact:** These guidelines supersede previous guidelines and circulars, requiring compliance with the new provisions. * **Action Required:** Review and align operations to comply with updated capital requirements, operational guidelines, and reporting requirements. * **Insurance Regulatory and Development Authority of India (IRDAI):** * **Impact:** Responsible for implementing and enforcing these guidelines, including processing applications, conducting inspections, and taking regulatory actions. * **Action Required:** Develop internal processes for application review, monitoring compliance, and issuing clarifications as needed.

Key Entities Referenced

Insurance Regulatory and Development Authority of India (IRDAI): The primary regulatory authority issuing the guidelines and responsible for the registration and supervision of IIOs. Insurance Regulatory and Development Authority of India {Registration and Operations of International Financial Service Centre Insurance Offices (IIO)} Guidelines, 2017: The core policy document, providing guidelines for the registration and operation of International Financial Service Centre Insurance Offices. International Financial Service Centre (IFSC): The specific geographic zone where the Insurance Offices (IIOs) operate under these guidelines. Special Economic Zones Act, 2005: The Act that enables establishment and operation of special economic zones where IFSCs operate. Insurance Act, 1938: Referenced act that defines basic insurance terms.
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oi, *rr arrctrq BFrqrr* e+{ Fd*-rfl srf}rs{ur j!&, TNSURANcE REGULAToRY AND lnlcrl DEVELOPMENT AUTHORITY OF INDIA Guidelines lnsurance Regulatory and Development Authority of lndia {Registration and Operations of lnternational Financial Service Centre lnsurance Offices (llO)) Guidelines, 2017 G u idel i nes Refe rence N o I R DA/R l/G DU SEZl26g I 1 2 t20 1 7, d aled 21 - 1 2-20 1 7 Page 1 of 33INDEX Sr. P a rticu la rs Annexure - Page No. No. / Form No. No. CHAPTER_ I Powers of Author to issue Guidelines 3 1 2 ob ective J Short Title and Commencement 3-4 4 Definitions 4 5 licabili CHAPTER- II 4-5 o R istration of llO 7 Classes or Subclasses of lnsurance Business for which llO may 5 be istered with the Autho 5-6 8 Ca ital Re u irement 9 lication Processin fees 6 t, 10 Annual Fee 11 EIi ibitit Criteria for R istration of llO 6 '7-7 0 12 lication for R istration of llO .III CHAPTER 13 Consideration for rant of Certificate of R istration of llO o '10 14 Grant of Certificate of R istration 10 Refusal for rant of Certificate of R istration 10-11 CHAPTER.IV to lssue of a du licate Certificate of R istration 1 17 Volunta Surrender of Certificate of R istration 11 18 Revocation, Suspension, Cancellation of Certificate of 12-13 R istration 19 Effect of Revocation, SusPension, Cancellation, voluntary 13-14 surrender of Certificate of R istration 20 Maintenance of books of account, records, and confidentialitY of 14-15 information submission of annual re rt to Authori CHAPTER _ V 21 o rational uidelines to all the llOs 15-17 22 Ivlis cellaneous Provisions for llOs 17 -18 18-19 Autho ower to ins ct 10 Re eal and Savi S 25 Power of the Authori to issue clarifications etc 19 FORMS / FORMATS Annex-1 / 20-23 26 Application by an lndian lnsurer for Grant of Registration as llO' Form - A Annex - 2 / 24 Certificate of Registration to lndian lnsurer as llO Form A1 Annex-3 / 25-30 28 Application by Foreign lnsurer's for Grant Of Registration as llO Form - B Annex-4 / 31 ?o Certificate of Registration to Foreign lnsurer as llO Form - Bl Annex-5 / JZ 30 Application for issue of Duplicate Certificate of Registration Form - C Annex-6 / 3'1 Duplicate Certificate of Registration Form - C1 Page 2 of 33CHAPTER - I 1 ln exercise of the powers conferred by Rule 3 of the IRDAI (Regulation of lnsurance Business in Special Economic Zone) Rules, 2015, read with Section 18(2) of the Special Economic Zones Act, 2005 and Section 14 of IRDA Act, '1999 the Authority hereby makes the following Guidelines; 2 Objective: These Guidelines aim to put in place the process of registration and operations of insurers, reinsurers in IFSC Special Economic Zones in alignment with the objectives of IFSC-SEZ. 3. Short Title and Commencement: i. These Guidelines may be called the "lnsurance Regulatory and Development Authority of lndia {Registration and Operations of lnternational Financial Service Centre lnsurance Offices (llO)) Guidelines, 2017' . ii. These Guidelines shall come into force from the date of notification. 4 Definitions: ln these Guidelines, unless the context otheruise requires; a. 'Act' means the lnsurance Act, 1938; b. 'Applicant' means an lnsurer (lndian or foreign) or a Reinsurer (lndian or Foreign) as the case may be. c. 'Authority' means the lnsurance Regulatory and Development Authority of lndia established under Section 3(1) of the lnsurance Regulatory and Development Authority Act, 1999 (41 of 1999). d. 'Certificate' means a Certificate of Registration (CoR) granted by the Authority. e. Domestic Tariff Area (DTA) means the area as defined under Section 2 (i) of the Special Economic Zones Act, 2005. f. 'Foreign insurer or reinsurer' means a body corporate incorporated under the law of any country outside lndia and duly registered with its home country regulatory or supervisory Authority for transacting insurance or reinsurance business. g. 'lndian insurer' for the purpose of these guidelines means an ,,lnsurer,, as defined under Section 2(9) (a) and (c) of the Act. h. 'lnternational Financial Service Centre' (IFSC) means an lnternational Financial Services Center which has been approved by the Central Government under Section 18(1) of the Special Economic Zones Act, 2005. Page 3 of 33,lnternational Financial service centre lnsurance office' (llo) means a branch office (of an applicant) to transact direct insurance business or reinsurance business as permitted by the Authority' j.'NetOwnedFund'(NOF)shallconsistof(i)paidupequitycapital,(ii)free reserves, (iii) Securiiies Premium Account, sum of which is reduced by (i) Accumulated Losses, (ii) book value of intangible assets, which shall be computed on the basis of last audited Balance Sheet and any capital raised afterthe Balance Sheet date shall not be accounted for' k. ,special Economic Zone' (sEZ) means a special economic zone as defined under Section 2(za) of the Special Economic Zones Act' 2005' t. All words and expressions used herein but not defined in these Guidelines, but defined in the lnsurance Act, 1938 (4 of 1938) or lnsurance Regulatory and DevelopmentAuthorityAct,lggg(41of1999)orSpecialEconomicZones.Act, 2005, shall have the meanings respectively assigned to them in those Acts, Rules, Regulations issued under those Acts, as the case may be' 5 Applicability: These guidelines are applicable for, a. The applicants who are willing to apply for registration of llO' b. The lndian insurer or reinsurei registered as llO with the Authority under these Guidelines to transact Direct lnsurance Business or Reinsurance Business or both. c. The foreign insurer or reinsurer registered as llo with the Authority under these Guidelinel to transact Direct lnsurance Business or Reinsurance Business or both. _ CHAPTER II 6. Registration of llO: a. No person or entity shall commence or undertake insurance or reinsurance business from an IFSC without obtaining prior registration as an llO from the AuthoritY. b.Thesoleobjectofthello,onbeingregisteredwiththeAuthority'shallbeto exclusively carry on insurance or relnsurance business from an IFSC. An llo shallnot.ngageitselfinanybusinessotherthanthosepermittedbythe Authority. in" ,ugi"t"red llo may be permitted to transact direct insurance business ". within tie IFSC, from other SEZs and from outside lndia d.Thelloregisteredtotransactdirectinsurancebusiness,shallnotwritedirect insurancebusinessfromtheDTAexceptinaccordancewithSection2CBofthe Act. Page 4 of 33e. ln case of reinsurance business, the llO; i. May accept reinsurance business from within the IFSC, from other SEZs and from outside lndia. ii. May accept reinsurance business from the insurers operating in the DTA in accordance with the order of preference for cession, as per extant Regulations notified by the Authority. No llO shall be permitted to transact a class of business, which is not permitted to applicant company by its home country regulatory or supervisory Authority. 7. Classes or Subclasses of lnsurance Business for which llO may be reg istered with the Authority; i. Life lnsurance Business ii. General lnsurance Business iii. Health lnsurance Business iv. Reinsurance Business Provided that, the llO may be permitted to transact direct Life insurance business or Direct General insurance business but not both or Reinsurance Business. However, the llO may be allowed to transact health insurance business as provided under extant Health lnsurance Regulations notified by the Authority. 8. CapitalRequirement: a. Assigned Capital The applicant shall demonstrate a minimum assigned capital of lndian Rupees Ten Crore (Rs. 10 Crore). Provided that, in case the applicant is Foreign Direct lnsurer, then such applicant Company shall possess paid-up equity capital as per provisions of Sec. 6 (1) of the Act. lt Such Assigned Capital, may be held in the form of Government Securities issued by the Government of lndia or held as deposits with Scheduled Banks in lndia and shall be maintained by the llO at all times during the subsistence and validity of its registration under these guidelines. b. Net Owned Fund (NOF): The Applicant shall maintain net owned funds (NOF) as applicable to the Branches of Foreign Reinsurers under Section 6 (2) of the lnsurance Act, 1938 or as may be prescribed by the Government of lndia. Provided that, maintaining of NOF requirement is not applicable for Foreign Direct lnsurer. Such NOF shall be maintained by the applicant at all times during the subsistence and validity of its registration. Page 5 of 33Provided that, the requirements of such assigned capital and NOF, as the case may be, are applicable for foreign insurers, reinsurers who make an application for registration of llO to the Authority. Further provided that, the applicant shall inform the Authority about change in shareirolding pattern or ownership of applicant Company, if any, within thirty days of effecting such change. 9. Application Processing fees; An applicant shall, along with the application, pay a non-refundable processing fee of lndian Rupees 5O,0bO/- (lndian Rupees Fifty Thousand only) and applicable taxes, if any, in favour of the Authority, by way of NEFT/RTGS payable at Hydeiabad or through such other payment mode as may be stipulated by the Authority from time to time. 10. Annual Fee; a. The llo shall pay annual fee of lndian Rupees one Lakh (Rs. 1 Lakh) and applicable taxes,'if any, for every financial year to the Authority before 31"t day of January of the preceding financial year' Explanation: For the Financial year 2018-2019 the annual fees shall be paid by 31st January 2018. b. lf the llo fails to deposit the annual fee before the date specified in clause 10 (a),theAuthoritymayacceptthepaymentofannualfeealongwithlatefeeof ien percent of the annual fee, if paid before the end of financial year in which the annual fee was required to be paid' c. where the llo has failed to pay the annual fee before the end of the financial yearthen,itscertificateofregistrationshallbeliabletobecancel|ed. d. Manner of payment of Annual Fees: The Annual Fee, Late fee and applicable taxes, if any, inrll be remitted in favour of the Authority, by way of NEFT/RTGS p"V"Uf" a['Hyderabad or through such other payment mode as may be stipulated by the Authority from time to time' 11. Eligibility Criteria for Registration of llO; a. lndian lnsurer or lndian Reinsurer: TheChairpersonoftheAuthoritymayconsiderrequestsforregistrationfroman lndian insurer or lndian reinsurei to selup llO on being satisfied that: i.Theapplicantisanlndianinsurerorlndianreinsurerregisteredwiththe AuthoritY; ii. The applicant has been in continuous operation during the preceding 5 years from the year in which the application is made; and Page 6 of 33iii. The applicant has satisfactory track record in respect of regulatory compliance. b. Foreign lnsurer or Foreign Reinsurer; The Chairperson of the Authority may consider requests for registration from a foreign insurer or foreign reinsurer to set-up llO on being satisfied that: The applicant is registered or licensed for transacting insurance or i. reinsurance business in the country of incorporation, ii. The applicant has been duly authorized by the regulatory or supervisory authority of its home country to set up an llO in lndia; iii. The applicant has been in continuous operation during the preceding 5 years from the year in which the application is made; iv. The applicant is complying with the provisions of Assigned Capital, Paid-Up Equity Capital and NOF as mentioned in Clause Nos. B of these guidelines. v. The applicant has satisfactory track record in respect of regulatory or supervisory compliance in its country of incorporation and also in any other country in which it is functioning. vi. The applicant shall be registered or certified in a National Regulatory Environment and with whom the Government of lndia has signed Double Taxation Avoidance Agreement. vii. The applicant shall have a solvency margin as stipulated by its home country regulatory or supervisory Authority. viii. The applicant shall have a minimum credit rating which is having at least good financial security characteristics from any of the internationally renowned credit rating agencres for the last three years. c. The applicant shall not be eligible to make an application if its; Application for registration as llO has been rejected by the Authority at any i. time during the preceding two financial years as on the date of requisition for registration application; or ii. The Certificate of Registration as llO, has been cancelled or withdrawn by the Authority in the preceding two financial years as on the date of application for registration as llO. 12. Application for Registration of llO; a. An applicant desirous of obtaining a Certificate of Registration as llO from the Authority shall submit an application as specified by the Authority. lndian lnsurer or lndian Reinsurer shall submit an application rn Form - A and Foreign lnsurer or Reinsurer shall submit an application in Form - B, seeking registration as llO. b Every application for registration of llO by the applicant shall be accompanied by, Page 7 of 33A certificate of approval from the appropriate authority as prescribed in the Special Economic Zones Act, 2005 for conducting insurance business in the IFSC. A certified copy of the Certificate of lncorporation, Memorandum of Association and Articles of Association of the applicant or a corresponding document which details the manner of formation of Company and conduct of its business; Certified copies of the published annual report of applicant for the last five years preceding the year of filing of application for registration of llO. Certified copy of approval from the board of directors of the applicant through a resolution, in support of the commitment to set up such llO. the name, address, occupation and contact details of the Directors, Chief Executive Officer of the applicant and the person proposed to be in-charge of the operations in proposed llO. A copy of the registration certificate issued by the Authority (in case of lndian insurers or lndian reinsurers). vI Business Projections of the llO for the next 5 years; ln addition to the above, applicant from a Foreign Country shall submit the following; viii A copy of the Certificate of Registration issued by its home country Regulatory or Supervisory Authority to transact insurance or reinsurance business, as the case may be. ix. A statement indicating infusion of the assigned capital of lndian Rupees Ten Crore (Rs. 10 Crore) or more. x. A copy of the certificate from its home country regulatory or supervisory Authority that, the applicant has necessary permission to open an llO in SEZ, lndia. xi. A note on the regulatory architecture of the country where the applicant is incorporated and licensed along with its reporting and compliance structure; xii. a certificate from a practising chartered accountant or a practising company secretary certifying that all the requirements relating to processing fees, assigned capital, NOF and other requirements have been complied with by the applicant. Nothing in sub-clause 12 (b) above, shall prevent the Authority from seeking further or additional information as may be needed for processing of the application for registration of llO. Provided that, in case, if any of the required documents to be filed with the Authority along with application for registration of llO is in a language other than English, then true and correct translation of all such documents in English language duly certified shall be enclosed along with the certified copies of original documents. Further Provided that, such translated documents pertaining to Audited and other Financial reports shall have monetary values in lndian Rupees only. while furnishing such financial documents with the Authority, the applicant sh_all ensure that, true and correct currency conversion rate is made applicable for Page 8 of 33the period for which such audited and other financial report is submitted with the Authority. Explanation: Translated documents pertaining to Audited Financial Reports shall be certified by Practicing Chartered Accountant. All other translated documents as mentioned are to be certified by Practicing Company Secretary. c. The Authority may require an applicant to furnish relevant documents or any further information or data or clarifications or may direct the applicant to comply with additional requirements within such time, as may be given, for the purpose of consideration of the application. Non-submission of such requirements within the given time, may lead to rejection of the application for registration as llO. d. Subsequent to submission of the application, the applicant shall not carry out any change in the structure, composition and other aspects such as Assigned Capital. of the applicant Company which may have a bearing on decision for grant of llO registration, without prior approval of the Authority. e. The applicant shall bring to the notice of the Authority, on its own and forthwith, any such further information, which might have a bearing on the consideration of their application in terms of these guidelines. Provided that, where the registration has already been granted before receipt of such information on changes incorporated, the Authority reserves the right to review the registration already granted. CHAPTER - III 13. Consideration for grant of Certificate of Registration of llO; a. The Chairperson of the Authority shall take into account, all matters relating to carrying on the business of insurance or reinsurance as the case may be, by the applicant. b. lnter alia, the Chairperson of the Authority shall also consider the following matters for grant of certificate of registration as llO, namely - i. The record of performance of lnsurance or Re-insurance business carried on by the applicant; ir. The record of performance of the directors and Key Managerial persons in the management of the applicant, iii. The proposed infrastructure of the llo such as adequate office space, lr equipment, infrastructure and trained manpower to effectivery carry out the insurance business from IFSC; iv. The organisation structure consisting of Key Managerial persons of the applicant Company and also of proposed llO; v. The proposed llO shall be capable of underwriting risks of specified rnsurance or reinsurance business and setfltng claims vi. The commitment to appoint in the proposed llO, sufficienfly skilled staff to underwrite the classes of insurance or reinsurance business and settlement of claims Page 9 of 33v any other requirements that the Authority may consider necessary for grant of Certificate of Registration. ln addition to the above the following may be considered in the matter of applicants from foreign cou ntries: viii. documentary proof of having lndian Rupees ten crore or more as assigned capital; ix. an affidavit by the person authorised by the Board of Directors or the executive committee of Management, of the applicant, as the case maybe, certifying that the requirements of the assigned capital have been satisfied. x. an affidavit by the applicant certifying the Net Owned Fund of the company. xi. certificate from a practising Chartered Accountant or a practising Company Secretary certifying that all the requirements relating to processing fees, assigned capital, NOF and other requirements of the Act have been complied with by the applicant. c. The application is complete in all respects and is accompanied by all required documents. d. The applicant is a bonafide applicant for registration; e. The financial condition and the general character of management of the applicant are sound; and f. The applicant is eligible, and in its opinion, is likely to meet effectively its obligations as specified under the Act as well as the Special Economic Zones Act, 2005; 14. Grant of Certificate of Registration; The Chairperson of the Authority, on being satisfied that the applicant fulfils the requirements and conditions of these guidelines, may register the applicant as an llO for the Class or Classes of lnsurance business or reinsurance business for which the applicant is found suitable and grant him a Certificate of Registration in specified Form No. ,q1 or Bl as the case may be. Provided that the Authority may grant certificate of registration with such terms and conditions as it may deem fit. 15. Refusal for grant of Certificate of Registration a. The Chairperson of the Authority may refuse grant of Certificate of Registration to an aPPlicant if it finds that: the applicant has misrepresented the facts_ or failed to fulfil the requirements i. as siipulated in the Aci, IRDA Act, 1999, Special Economic Zones Act' 2005 and rules, regulations, guidelines under these Acts' Page 10 of 33ii. the application is not complete in all respects or not conforming to the instructions mentioned in the form for application or not complying with the requirements of these guidelines or directions of the Authority. Provided that before refusing grant of Certificate of Registration, the Authority shall offer reasonable opportunity to the applicant of being heard or to complete the application or conform to the instructions mentioned in the form or comply with the requirements within thirty days of receipt of communication from the Authority. b. Any order of refusal to grant Certificate of Registration shall be communicated to the applicant by the Authority in writing through a speaking order. c. An applicant, against whom an order refusing to grant Certificate of Registration has been passed by the Authority, shall not, for a period of two years from the date of such refusal, submit a fresh application to the Authority for grant of Certificate of Registration as an llO. d. An applicant aggrieved by the decision of the Authority under these guidelines, may file an appeal before Securities Appellate Tribunal (SAT) as per provisions of Sec. I 10 of Act. CHAPTER - IV 16. lssue of a duplicate Certificate of Registration: a. ln case a Certificate of Registration is lost or destroyed or mutilated, the llO shall submit to the Authority an application for issue of duplicate Certificate of Registration in in Form - C. b. Such llO shall pay a processing fee of lndian Rupees five thousand and applicable taxes, if any, to the Authority in the manner mentioned in Clause No. 10 (d) of these Guidelines. c. The Chairperson of the Authority, on being satisfied that the original Certificate of Registration has been lost, destroyed or mutilated, shall issue a duplicate Certificate of Registration in the Form C-1. 17. Voluntary Surrender of Certificate of Registration: a. An llO, who has been granted Certificate of Registration, may choose to voluntarily surrender its Certificate of Registration by making an application to the Authority stating the reasons for surrender and the application shall be accompanied by such documents as may be specified by the Authority from time to time. b. On being satisfied with the reason for surrender, the Authority may pass an order agreeing to the surrender of Certificate of Registration by'an llb Page 11 of 3318. Revocation, Suspension, Cancellation of Certificate of Registration; a. The Authority may by order, revoke, suspend or cancel the Certificate of Registration granted to an llO or may initiate any other regulatory action if it is satisfied that, an llO: i. is functioning in a manner detrimental to the interests of the insured, policyholder, ceding insurer or reinsurer, as the case may be. ii. has experienced deterioration in financial conditions, because of which the llO cannot function effectively; iii. has furnished wrong or false information or undertaking or wilfully concealed or failed to disclose material facts in the application for obtarning a Certificate of Registration; iv. or applicant Company is under liquidation or is adjudged as being insolvent. v. has violated or failed to comply with these guidelines or any other provisions of the lnsurance Act,193B, Insurance Regulatory and Development Authority Act, '1999, SEZ Act, 2005 or any of the rules, regulations, guidelines or circulars issued under these Acts. vi. has failed to furnish information relating to its business as a llO or failed to submit periodical returns as required by the Authority; vii. did not co-operate with any inspection, audit or enquiry conducted by the Authority or caused by the Authority; viii, has failed to resolve the complaints of the policyholders, ceding insurer or reinsurer or failed to give a satisfactory reply to the Authority in this regard. ix. or applicant Company has failed to maintain specified equity paid-up capital, Assigned Capital or failed to infuse additional capital as advised by the Authority or failed to meet the NOF requirements. x. has failed to pay to the Authority the Annual fees, penalties imposed or the reimbursement of expenses, if any, under these guidelines; xi. has violated the conditions, if any, imposed at the time of issuance of Certificate of Registration. xii. did not carry out its obligations or did not adhered with provisions as mentioned in these guidelines. xiii. has a Principle Officer, who does not fulfil the applicable norms. xiv. has been set up only to divert or siphon off the funds within a group of companies or their associates. xv. indulges in manipulating the specified insurance or reinsurance business, as the case may be; xvi. indulges in unfair trade practices; xvii. has failed, at any time, to comply with the provisions of Section 64VA of the Act as to maintain the excess of the value of assets over the amount of liabilities, xviii. has transferred all or part of the business to any person or has amalgamated with the business of any other insurer without the approval of the Authority, xix. makes default in complying with, or acts in contravention of, any requirement of the Act or of any rule or any regulation or order made or any direction issued there under, Page 12 of 33xx. carnes on any business other than specified insurance or reinsurance business, as permitted by the Authority. xxi. fails in complying with any direction issued or order made by the Authority under the lnsurance Regulatory and Development Authority Act, 1999, xxii. fails in complying with, or acts in contravention of, any requirement of the Companies Act, 2013, the Foreign Exchange Management Act, 1999, the Prevention of Money Laundering Acl, 2002 or the Special Economic Zones Act, 2005, xxiii. is convicted of an offence under any law for the time being in force, b. Notwithstanding the above, where the Authority is of the opinion that the operations of the llO are not in the interests of the Indian insurance market or public interest, the Authority reserves the right to take appropriate steps including the right to direct the applicant to close the llO after giving an opportunity of being heard. c. The Authority may revoke or cancel registration already made under these Guidelines, if it is satisfied that, in case of an llO or its applicant Company i.e such a foreign insurer or reinsurer has been debarred by law or practice by the home country supervisor or regulator to carry on insurance or reinsurance business. d. Before taking action under Clause No. 1B (a) of these Guidelines, the Authority shall grant a reasonable opportunity of being heard, to the llO. e. However, the Authority may issue an order revoking or suspending the Certificate of Registration without notice if the llO; is found to be guilty of fraud or is convicted of a criminal offence; commits such defaults which require immediate action in the opinion of the Authority; fl has not commenced business within specified time lines from the date of Certificate of Registration, as mentioned in these gutdelines. Provided that the Certificate of Registration so revoked or suspended shall not be cancelled by the Authority unless an enqurry is conducted and the llO has been given a reasonable opportunity of being heard. f. Every order made by the Authority under Clause No. 18 of these guidelines shall be in writing stating clearly the reasons for revocation, suspension or cancellation of the certificate of Registration and shall be served on the llo. 19. Effect of Revocation, suspension, cancellation, voluntary surrender of Certificate of Registration: on and from the date of the order issued by the Authority, of revocation, cancellation, suspension or voluntary surrender of the certificaie of registration, the llo shall cease to transact new insurance/reinsu rance uusines"s unies" mentioned otherwise in the order. Page 13 of 33Provided that, the Authority may direct the llO to continue to service the existing insurance or reinsurance contracts for such a period as may be specified in the Order made by the Authority. 20. Maintenance of books of account, records, and confidentiality of information, submission of annual report to Authority; a. An llO shall maintain proper records, documents, evidence and books of all transactions carried out by it in terms of these guidelines. b. The llO shall submit financial returns including statement of accounts in the matter as may be specified in the IRDA (Preparation of Financial Statements and Auditor's Report of lnsurance Companies) Regulations, 2002. c. All other records shall be maintained for such period as may be specified by the Authority. d. Such records, documents, evidence, books etc., and any information contained therein shall be made available to the Authority or to such person appointed by the Authority for investigation into or inspection of the functions of the llO. e. While maintaining the records in terms of these guidelines, the llO shall follow strictly the professional confidentiality as required. However, this does not prevent the llO from disclosing the relevant information relating to its business to any Court of Law, Tribunal, the Government or the Authority in case any investigation is carried out or is proposed to be carried out against the any insurer or reinsurer or any other person or for any other reason. f. The llO shall submit separate financial returns including statement of accounts, in the manner as may be specified by the Authority. An llO shall furnish the Authority an annual report and any other return of its s activities as may be specified by the Authority. h. Every llO shall file periodical information to the Authority relating to its business activities in such form(s) as may be specified by the Authority. i. Every llo shall furnish declarations and undertakings in such form(s) and at periodicity as may be specified by the Authority. Provided that, in case if, any of the required documents to be filed with the Authority are in other than English or Hindi language, then true and correct translatibn of all the documents in English language duly certified by concerned Authorized person is also to be enclosed' FurtherProvidedthat,translateddocumentspertainingtoAudited-andoth.er only f r"n"i"l reports shall have monetary values in lndian Rupees While Page 14 of 33furnishing such financial documents with the Authority, the applicant shall ensure that, true and correct currency conversion rate is made applicable for the period for which such audited and other financial report is submitted with the Authority. Explanation: Translated documents pertaining to Audited and other Financial Reports shall be certified by Practicing Chartered Accounting. All other translated documents are to be certified by Director or designated CEO of proposed llO. CHAPTER - V 21. Operational guidelines to all the IlOs a. Commencement of Business Operations; An llO shall commence business, for which it has been authorised, within twelve months from the date of grant of Certificate of Registration by the Authority. Provided, however, that if the llO is not able to commence business within the specified period of twelve months, it can, before the time limit expires, but at least thirty days in advance, seek an extension of time in writing to Chairperson of the Authority for commencing business operations. The Chairperson of the Authority, on receipt of the request, shall examine it and communicate the decision in writing. No extension of time shall be granted by the Chairperson of the Authority beyond eighteen months from the date of grant of certificate of registration under these guidelines. b. Every llO which has been granted Certificate of Registration shall display and be identified in public domain by the name with which it is registered with the Authority, IRDAI registration number, address of the llO and the applicant Compa ny. c. All the monetary transactions with respect to insurance or reinsurance business made by an llo shall be in foreign currency and not in lndian Rupees. d Appointment of Principar officer, The appricant shail appoint a principar Officer, who will be in charge of the llO. The appointmeni, reappointmeni, removal and manageriar remuneration payabre to the principar officer shafl be with the prior approval of the Authority. Page 15 of 33e. Reinsurance and Retrocession i. The llO shall retrocede not more than 90% of its reinsurance business The surplus available after such retrocession arrangements as mentioned in Clause Nos. 21 (e) (i) of these guidelines shall be held in the form of Government Securities issued by Government of lndia or in deposits with Scheduled Banks in lndia or invested as per extant lnvestment Regulations notified by the Authority. f. Solvency Margin: The llO shall prepare and submit a separate statement of assets, liabilities and solvency margin requirements in the manner as may be specified in the IRDAI (Assets, Liabilities and Solvency Margin of General lnsurance Business) Regulations, 2016 and IRDAI (Assets, Liabilities and Solvency Margin of Life lnsurance Business) Regulations, 2016. g. Repatriation of surplus: Any repatriation of the surplus generated by the operations of the llO shall be only with prior approval of the Authority. The Authority before granting such an approval shall obtain all relevant information and satisfy itself that the assets of the llO are adequate to meet their liabilities. ln addition, the repatriation of surplus shall comply with the other requirement of RBl, FEMA as applicable. h. Delegated authorities: The llO shall provide systems and checks to ensure that delegated powers are exercised prudently and ludiciously by the authorised officials and has no adverse fallout on the operations in IFSC. The llO shall also review its delegated powers and functionaries as regards to adequacy of such powers to meet local operational requirements and the delegated authority. A copy of such review shall be filed with the Authority annually. Supervision and Control: i. The Board of the applicant shall ensure to have in place effective supervision and control and to monitor continued viability of llO through necessary returns, ii. Such returns shall include: a) Financial reporting covering statement of account giving details of activities; b) Business reporting. iii. A copy of synopsis of the findings of the inspection, audit, scrutiny and compliance submitted by the llO and put up to the Audit Committee of the applicant Company shall also be submitted to the Authority Once Board of applicant Company has taken such findings on records' Reporting requirements by the llO to the Authority: i. ine fb oi foreign insurer shall immediately report to the Authority any f ,"grlrtory or sup;rvisory action taken by the home country regulator with tuii Aetaiis and the penalty, any administrative action imposed and the remedial steps taken. ii. nti tne llOs shall submit periodic returns in such form and such manner as the Authority may specify from time to time Page 16 of 33iii. Downgrading Reporting: The llO shall immediately report along with relevant documents to the Authority any downgrade in Credit Rating by a internationally renowned credit rating agency. iv. Erosion of Net Owned Fund: The branch office shall immediately report to the Authority more than 57o erosion in the NOF of the applicant Company. k. Corporate Governance: The llO shall have a Board Approved Executive Committee consisting of Principal Officer or CEO of the llO and other two Key Managerial Persons preferably the Chief Risk Officer and the Chief Finance Officer. The Executive Committee shall keep the CEO of the applicant Company informed about the decision taken by the Executive Committee. The CEO of applicant Company shall keep the Board informed about the major and important decisions taken from time to time. I. lnformation Technology: The llO shall have its lT system which will have all the transaction details and information relating to its business transactions. m. Protection of Policy Holders' lnterest: With respect to underwriting of direct insurance business sourced from and within IFSC, other SEZs and DTA, the llO shall comply with extant Protection of Policy Holders' lnterest Regulations as notified by the Authority. n. Outsourcing: Activities related to outsourcing shall be in compliance with extant Outsourcing Regulations as notified by the Authority. o. Advertisement: Activities related to advertisement shall be in compliance with extant Advertisement Regulations, Circular or Guidelines as notified by the Authority. 22. Miscellaneous Provisions for llOs 1) The Principal Officer or Chief Executive Officer of an llO shall be responsible for the proper day to day administration of an llO as well as regulatory compliance issues. 2) ln particular, and without prejudice to the generality of the provisions contained in these guidelines, it shall be the duty of every llO, that it shall; a. have effective grievance management systems in place. b. ensure to resolve the grievances of policyholders within fifteen days of receipt of the same. c comply with the regulations, circulars, guidelines and directions that may be issued by the Authority from time to time. Page 17 of 33d. not submit any wrong, incorrect, misleading data or information or undertaking to the Authority or to the insurer or to any other stake holder of the insurance business. e. have systems in place to identify, monitor, control and deal with frauds f. put in place systems and internal processes for detection of fraud and its mitigation, delineate and disseminate information on fraudulent cases and submit such information on fraudulent cases as directed by the Authority. g. comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines as issued by the Authority from time to time; h. follow the provisions of lnsurance Act, 1938, IRDA Act, 1999, SEZ Act, 2005 and Rules, Regulations, circulars, guidelines issued under these Acts. Provided that, the Provisions of notification Ref. S.O. 870 (E) dated 27-03- 2015 (File No. 14017/98/2014-lns.ll) issued by Department of Financial Services, Ministry of Finance, Government of lndia are applicable for all llOs. i. comply with the requirements of Special Economic Zones Act, 2005, Foreign Exchange Management Act, 1999 and any other law in force governing the operations of such llO. j. follow extant Foreign Exchange Management (IFSC) Regulations, 20'15 or any other corresponding circular guidelines issued by RBl, from time to time, in the matter of currency transactions in SEZ-lFSC. 23. Authority's power to inspect; a. The Authority, with or without prior notice, may appoint one or more of its officers as "inspecting authority" to undertake inspection of books of accounts, records and documents of the llO for any of the purposes mentioned in Clause No. 23 (b) of these guidelines. b. The inspection under Clause 23 (a) may be carried out for any of the following purposes, namely: i. to ensure that the statutory books or books of account are being maintained in the manner as required; or ii. to ensure that the provisions of the Act, other applicable norms, rules, regulations, guidelines, circulars, advisories are being complied with; or iii- to inspect the complaints received from any insured, any insurer or reinsurer, other llO or any other person on any matter having a bearing on the activities of the llO; or iv. to inspect the affairs of the llo suomotu in the interest of proper development of llO business or in policyholders' interests' c. An llo shall maintain all the books of account, statements, documents, etc., at its llo office address as notified to the Authority, and it shall be the duty of all Page 18 of 33officers and employees of the llo to make these available to the inspecting authority. 24. Repeal and Savings a. From the date of commencement of these guidelines, the following guidelines shall be superseded: i. IRDAI (lnternational Financial Service Centre) Guidelines, 2015 issued vide Ref. No. IRDA/NL/GDL/MISC/065/0412015 daled 06-04-2015 along with all forms and circulars issued there under. ii. Circular No. IRDA/NUCIR/MISC/O1910112016 dated 28-0'1-2016 to the extent applicable for insurer or reinsurer. b. The llOs which have been issued Certificate of Registration by the Authority as per provisions of guidelines with Ref. No. IRDA/NL/GDL/MISC/065/04/2015 dated 06-04-20'15 and which continue to be valid as on the date of notification of these guidelines shall be deemed to be holding valid Certificate of Registration as if they have been issued under these guidelines. c. Applications for grant of Certificate of Registratlon as an llO, which are filed as per provisions of guidelines with Ref. No. IRDA/NL/GDL/MISC/065/04/201 5 dated 06-04-201 5 and under process with the Authority as on the date of notification of these guidelines shall be processed for grant of Certificate of Registration under these guidelines. d. Where any inspection has been conducted or proceedings have been initiated by the Authority as per guidelines with Ref. No. IRDA/NL/GDL/MlSCi065/04/20'15 dated 06-04-2015; they shail continue to be governed by said guidelines, only till their final disposal. 25. Power of the Authority to issue clarifications etc.: In order to remove any doubts or the difficulties that may arise in the application or interpretation of any of the provisions of these guidelines, the Chairperson of the Authority may issue appropriate clarifications or guidelines as deemed necessary. P.J. Joseph Member (Non-Life) v Page 19 of 33An nexu re - 1 FORM _ A APPLICATION BY AN INDIAN IN RER / REINSURER FOR GRANT OF CERTIFICATE OF REGISTRATION AS INTERNATIONAL FINANCIAL SERVICE CENTRE INSURANCE oFFrcE (ilo) Sr. Pa rtic u la rs Applicant's Response l Remarks No. Section A: Company Profile Name of the applicant 1 2 Address of its registered office Date of incorporation [DD/MM/YYYY] 4 Registration No. and date of first Copy of the registration IDD/MM/YYYY] registration certificate 5 Line of business currently handled a. Lines of lnsurance or Reinsurance Business as the case may be b. Countries of operation 6 Amount of Authorised capital, Subscribed capital, lssued capital & Face value of shares and their num bers 7 Board Resolution Annexure - Provide a copy of the resolution by the applicant's board in support of the commitment to set up an llO. I Name, Address and contact details Provide a certified of the person responsible for the copy of the board affairs of the proposed llO resolution appointing the person responsible for affairs of llO o Regulatory approvals Annexure - Provide copies of regulatory approvals for opening of an office in SEZ for conducting insurance business in the SEZ. 10 Annual Reports Annexure - Annual reports for the past 5 Years. a. 11 Details of the Office proposed to be Name of the office: b. opened: office Address. c. Address for Communications (state the name of the Principal Officer, telephone numbers, Jax- Page 20 of 33numbers, mobile number, e-mail address and such other details: d. Principle Officer for llO & Key Management Personnel and allocation of responsibilities. (Propose d): e. Organizationalstructure. Reporting relationships of the llO to the insurer: f. Planned infrastructure at pro osed office 12 Detajls of payment of fee prescribed under the Guidelines 13 Solvency margin of the lndian insurer for five years preceding the date of application S€ction B: llO Business Strategy 14 Market Research and Analysis Annexure - The applicant may have undertaken some form of market analysis to ascertain the market potential. The applicant may furnish full description of the research, along with the conclusions reached 15 Types of lnsurance or Annexure - Reinsurance arrangements to be offered, as the case may be The applicant may give detail of the types of insurance or reinsurance arrangements that it will offer to the lndian and other markets. lo Underwriting Annexure - This section should describe the approach used for undeMriting of proposals, etc. Please also state the nature of support to be provided in underwriting and in training of underwriters and upgradation of skills of the local persons by the head office. 17 I nform ati on Tec h n ol ogy Annexure - lnsurance industry is very much dependent on computer technology. Full description should be provided for the following: . The different areas where computer systems will be employed. . The degree to which the systems will be used for policyholder Page 21 of 33servrcrng. . The degree of interconnectivity of the systems. . A description of how the l/T systems will be used to develop the required Management lnformation Systems. . Extent of procedures and operations which will remain manual. 18 Retention Limits and Reinsurance Annexure - The nature of reinsurance arrangements should be described fully, giving the following details: . The basis of reinsurance. . Terms of reinsurance. . Manner of reinsurance support from head office . Retention limits . Retrocession within lndia '19 Recruitment and Trai ning Annexure - Different areas of the company require personnel with different skill sets. Some of the special technical skills would require special focus. The company may submit a detailed write-up on its plans to impart technical skills and knowledge locally. 20 lnternal Controls Annexure - The company will need to establish a set of procedures and norms for various activities. The manner in which these will be monitored should be described. 21 Expenses of Administration Annexure - The proposed expenses as a Per cent of premium. 22 Technical skills Annexure - The technical skills of the PeoPle who will work in the IIO and Plan for imparting knowledge for skill at local level. ,upgradqtio! 11 Financial Proiections a. Amount of business. Annexure - A description of the model used for b. Size of suPPort and financial projections should be administrative staff. c. provided, based on assumPtions, for Premium income. a period of 5 Years, for each Year d. lnvestment income from the start. Please Provide e. Commissions and other details against each of the items sales related exPenses. listed in the next cell. (Amount f. Expenses of I Page 22 of 33should be Rs in crore) admlnistration. g. Statutory reserves. h. Required solvency margins. i. Profit and loss accounts and balance sheets. j. First year and renewal expense ratios. k. Capital needs l. Break-even periods and the Return on Capital. m. Retrocession with group companies n. Retrocession with othe rs This section should also discuss the manner in which the future capital needs will be met. 24 Conclusion ln conclusion, please discuss the viability of the operations. Any special issues or concerns should also be indicated Certification l, the undersigned, solemnly declare that the facts given in this application form on behalf of the applicant company, are true and that the projections and estimations are based on reasonable assumptions. Place Date: Signature of the Authorised Person (with Designation and Seal) Page 23 of 33Annexure - 2 FORM - A1 /NSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (Seal of the Authority) CE RTI F I C ATE O F R EG I ST RATI O N Number._ Registration This is to certify that (Name of Reinsurer/lnsurer and his address) has this day been registered in accordance with the lnsurance Regulatory and Development Authority of lndia (Registration and Operations of lnternational Financial Service Centre lnsurance Offices) Guidelines, 2017 as IFSC lnsurance Office (llO) to transact the classes of business specified in the Schedule below. Gtven under the seal of the Authority at this day of lwo thousand and Authorised Signatory INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Schedule Classes of business which may be transacted:-- 1 2 2 Page 24 of 33Annexure - 3 _ FORM B APPLICATIoN BY A FOREIGN INSURER / REINSURER FOR GRANT OF CERTIFICATE OF REGISTRATION AS INTERNATIONAL FINANCIAL SERVICE CENTRE TNSURANCE OFFTCE (ilO) ' S.No. lParticulars Applicant's Response Remarks i Section A : Company Profile 1 Name of the applicant 2 Address of its registered office 3 Date of incorporation as a Reinsurer Certificate of IDD/MM/YYYY] incorporation/Deed of Covenant/Other valrd proof 4 Registration No. (issued by the Copy of the regulatory Authority in the country of registration the applicant's domicile) and date of certificate f irst reg istration ID D/lvlM/YYYY] 5 Current lines of insurance business a. Lines of lnsurance or Reinsurance Business b. Countries of operation 6 Amount of Authorised capital, Subscribed capital and lssued Capital & Face value of shares and their numbers 7 Name, Address and contact details Provide a certified of the person responsible for the copy of board affairs of the proposed llO resolution appointing the person responsible for affarrs of llO I Net Owned Funds of the applicanl as at close of immediately preceding financial year (Amount to be specified as Rs ln crore. Currency conversion shall be as per rate prevailing at the time of application) 9 Credit rating for the last 3 years from Preceding year Communication from 1 internationally renowned credit rating Rating Agency: the rating agency agencies (minimum of 'BBB' or its Preceding year 2 equivalent) Rating Agency: Preceding year 3 Rating Agency: 10 Board Resolution Annexure - Provide a copy of the resolution by the applicant's board rn support of the commitment to set up an llO. 11 Regulatory approvals in lndia Annexure - Page 25 of 33a. Provide certificates of approval from the appropriate authority for opening of an ucting office/cond of business inthe SEZ. b. Permanent Account number (if allotted by lT authorities) c. Service Tax Registration details (if allotted) 12 Certificate from CA Annexure - Provide a certificate from a practicing Chartered Accounlant in lndia or a practising Company Secretary of lndia certifying that all the requirements of the Act read with lnsurance Regulatory and Development Authority of lndia (lnternational Financial Service Centre) Guidelines, 201 5 guidelines and notificattons issued under section 2CA of the Act have been complied with by the applicant 13 Annual Reports Annexure - Annual reports for the past 5 ars 14 Details of the office proposed to be (a) Name of the Office: opened: (b) Office Address(representat ive address or company address if the llO office address is not available). Address (c) for Communications (state the name of the Principal Officer, telephone numbers, fax numbers, mobile number, e-mail address and such other details: (d) Principle Officer & Key Management Personnel and allocation of responsibilities.(Pro Page 26 of 33 1posed). (e) Organizational structu re. Reporting relationships of the llO to the holding compa ny (f) Planned infrastructure at the proposed office 15 Details of payment of fee prescribed under the IFS tnes 16 Amount of Assigned Capital and the form in which it is maintained. Please indicate the sources of funds to meet the "Assigned Capital" re uirement Particulars of 17 Previous Application. Has the applicant ever applied for license in lndiato carry out insurance busrness? lf so, give particulars. 18. Details of shareholders of foreign reinsurer: [Please give full name, address, percentage of holding in the paid up capital of the insurer, Occupation, Qualifications and Experience, Number of shares held and Percentage of share capital in the companyl Please attach separate sheets if necessary. Details of persons holding more than 1% of the issued capital of the applicant and cromoters are to begtven rn separate slatements Full Name Date of Address with Qualfic Experien Present No. of equity Remarks [filst, middle, Birth/Dat Telephone Nos., ations' ce occupation (voting rights) surnameyName of eof Fax Nos , E-mail shares and the Corporate incorpor percentage of qtroJl total holding o,___ (1) L2) (3) (4) (5) (6) (7) "Columns 4 to 6 may be left blank for corporate shareholders. Section B: R ulatory mpliance in the home country 19 Name, Address and contact details of the Regulatory Authority in the counlry of domicile where the applicant is registered 20 Regul alo ry Arch aite cture Provide an Provide note on the Annexure with brief tre hg eul atory architecture of of the regulatory Regulatory Supervisory or architecture in the Authority areas of accounting, where the applicanl is solvency and other registered/licensed giving reporting provisrons related to 1. requirements- Products 2. Market conduct 3. Aqcguqtilg Page 27 of 334. Asset Valuation 5. Liability Valuation 6. Solvency 7. ERM 8. Fit & Proper criteria L Framework with regard to of supervision subsidiary and foreign branches established in other urisdictions 21 Ce rtif i c ate of Auth orizati o n Annexure - Provide a certificate of authorization granted by the or Regulatory Supervisory Authority of the country of lnco ration to set up an llO Minimum Solvency 22 Margin prescribed by the regulator in the Jountry of domicile 23 Solvency margin of the applicant for five years preceding the date of application Section C: llo Business Strategy 24 Geographic Spread.' Give the Annexure - of the addresses administrative office 25 Market Research and Analysis AnnexuTe - The applicant may have undertaken some form of market analysis to ascertain the market potential. The applicant may furnish full description of the research, along with the conclusions reached 26 Types of Reinsurance Annexure - arrangements to be offered The applicant may give detail of the types of reinsurance arrangements that it will offer to the lndian and other markets. Also, please include a note on the lrnes of business proposed to be underuritten at the llo and stamp of the Parent com n being used at the llo Annexure - 27 Underwriting This section should describe the approach used for underwrittng of proposals, etc. Please also state the nature of support to be Provided in underwriting and in training of underwriters and uPgradation of skills of the local Persons bY the head office Annexure - 28 tnformation Technology Page 28 of 33lnsurance industry is very much dependent on computer technology. Full description should be provided for the following: . The different areas where will computer systems be employed. . The degree to which the systems will be used for policyholder servicing. . The degree of interconnectivity of the systems. . A description of how the l/T systems will be used to develop the required Management lnformation Systems. . Extent of procedures and operations which will remain manual. 29 Retention Limits and Reinsurance Annexure - The nature of reinsurance arrangements should be described fully, giving the following details: . The basis of reinsurance. . Terms of reinsurance. . Manner of reinsurance support from head office . Retention limits - in lndia . Retrocession within lndia . Retention limits - outside lndia 30 Recruitment and Training Annexure - Different areas of the company require personnel with different skill sets. Some of the special technical skills would require special focus. The company may submit a detailed write-up on its plans to impart technical skills and knowledge locally. 31 lnternal Controls Annexure - The company will need to establish a set of procedures and norms for various activities. The manner in which these will be monitored should be descnbed. 32 Expenses of Administration Annexure - The proposed expenses as a per cent of premium. 33 Technical skitts Annexure - Page 29 of 33The technical skills of the people who will work in the branch and plan for imparting knowledge for skill u radation at local level 34 Financial Projections (a) Amount of business. Annexure - A description of the model used for (b) Size of support and financial projections should be administrative staff. provided, based on assumptions, for (c) Premium income. a period of 5 years, for each year (d) lnvestment income. from the start. Please provide (e) Commissions and other details against each of the items sales related expenses. listed in the next cell. (Amount (f) Expenses of should be Rs in crore) administration. (g) Statutory reseryes. Required (h) solvency margins. (i) Profit and loss accounts and balance sheets. U) First year and renewal expense ratios. (k) Capital needs (l) Break-even periods and the Return on Capital. (m) Retrocession to group companies (n) Retrocession to others This section should also discuss the manner in which the future capital needs will be met. 35 Conclusion ln conclusion, please discuss the viability of the operations. Any special issues or concerns should also be indicated Certification l, the undersigned, solemnly declare that the facts given in this application form on behalf of the Applicant Company, are true and that the projections and estimations are based on reasonable assumPtions. Place Date: Signature of the Authorised Person (his/her designation with Seal) Page 30 of 33Annexure - 4 - FORM 81 /NSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (Seal of the Authority) CERTI FICATE O F REG ISTRATIO N Number._ Registration This is to certify that (Name of Foreign lnsurer / Reinsurer with llO address) has this day been registered in accordance with the lnsurance Regulatory and Development Authority of lndia (Registration and Operations of lnternational Financial Service Centre lnsurance Offices) Guidelines,2017 as IFSC lnsurance Office (llO) to transact the classes of business specified in the Schedule beiow. Given under the seal of the Authority at day two thousand th is of and Authorised Signatory INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Schedule Classes of business which may be transacted:- 1. Page 31 of 33Annexure - 5 - FORM C APPLICATION FOR ISSUE OF DUPLICATE CERTIFICATE OF REGISTRATION (An applicant shall apply in the following format along-with with the documents specified herein.) To lnsurance Regulatory and Development Authority of lndia. Hyderabad We request you to issue a duplicate certificate of registration for which we give below the following details. 1. Name of lndian lnsurer/ Foreign lnsurer: 2. RegistrationNumber: 3. Date of Certificate of Registration. 4. How original certificate has been lost, destroyed or mutilated? 5. Particulars of remittance of fee. Place Yours truly, Date: Signature of the Chief Executive Officer. (Name of the Chief Executive Officer) (With Seal) Notes: 1. Enclose the original copy of the resolution of the board for the issue of duplicate certiflcate, in duplicate. 2. Enclose a DD for Rupees flve thousand drawn in favour of lnsurance Regulatory and Development Authority of lndia payable at Hyderabad or a proof of electronic fund transfer of the amount to the account of lRDA|. Page 32 of 33Annexure - 6 - FORM C1 /NSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (Seal of the Authority) CERTIFICATE OF REGISTRATION . DUPLICATE Registration Number This is to certify that (Name of Foreign lnsurer with llO address) has this day been registered in accordance with the lnsurance Regulatory and Development Authority of lndia (Registration and Operations of lnternational Financial Service Centre lnsurance Offices) Guidelines,2OlT as IFSC lnsurance Office (llO) to transact the classes of business specified in the Schedule below. Given under the seal of the Authority at day two thousand th is of and Authorised Signatory INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Schedule Classes of business which may be transacted.- 1. Page 33 of 33

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