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IRDAI notifies CG Regulations, 2024

Mahak Agarwal | corplaw@vinodkothari.com

Introduction

The Guidelines for Corporate Governance (‘2016 Guidelines’) for insurers in India have been around for close to a decade now. These Guidelines were initially brought as an update to the then 2009 Guidelines for the purpose of aligning the same with the extensive changes to the governance of companies brought about by the Companies Act, 2013. As such, the new Guidelines were framed to be mostly in line with the Act of 2013 except certain provisions such as requiring the CEO to be a WTD of the Board (where the chairman is NED), prescribing fit and proper criteria for directors, requiring certain additional committees, having only profit criteria for CSR applicability, etc.

Through the years, these Guidelines have served as a valuable source of direction in ensuring corporate governance for insurers; laying down guidance for the composition, roles and responsibilities of the Board, functions of various Board Committees, appointment and remuneration of KMPs, disclosures in financial statements, etc.

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IRDA relaxes stringent norms for Common Directors among insurance intermediaries

– Kaushal Shah, Executive | kaushal@vinodkothari.com

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Our related write-up:

IRDA rolls out conditions for common directorship in insurance company and intermediary – https://vinodkothari.com/2022/09/irda-rolls-out-conditions-for-common-directorship-in-insurance-company-and-intermediary/

Write ups on Corporate Laws – https://vinodkothari.com/category/corporate-laws/

IRDA rolls out conditions for common directorship in insurance company and intermediary

If compliant, to be regarded as deemed approval under Section 48A of the Insurance Act, 1938.

– Aanchal Kaur Nagpal, Manager & Sharon Pinto, Manager (corplaw@vinodkothari.com)

Insurance relationships are fundamentally built on trust between insurers and their customers. (Insurance and Regulatory Development Authority of India (‘IRDA’) has been quite stringent with respect to curbing instances of conflicts of interest in case of insurance companies and/ or insurance intermediaries.

As per Exposure Draft on IRDAI (Conflict of Interest) Guidelines, 2019[1], “Conflict of Interest” means a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another and includes situations when a person’s impartial and objective performance of duties or decision-making could be jeopardized because of personal interests being involved;

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