Insurers seek more time from IRDAI on management control issue

Several insurers with foreign partners have sought more time from the regulator to report on the issue of management control, a top IRDAI official has said.
Earlier, IRDAI (Insurance Regulatory and Development Authority of India) had asked insurers to report whether their companies -- having foreign joint venture partner either with 26 per cent or 49 per cent -- are being managed by the Indian promoters or not.
"Some companies have already submitted their report on ownership and management control. There was a deadline of January 18 but we are waiting for more clarity to come from them," IRDAI chairman T S Vijayan told reporters on the sidelines of a Ficci insurance summit today.

"The JV agreements are already there between foreign partners and domestic partner, but they have to give certain clarification on the issue," he said.
On the issue of finalising the reinsurance regulations, Vijayan said the final norms on reinsurers were likely to come within next two-three weeks.
"The regulations on Llyods and reinsurers are in making process and it has to be approved by authority and then it will be notified in the gazette."

"Exposure draft on Llyods is already there and needs to be finalised," he added.
On the latest move by IRDAI to cap agency commissions, Vijayan said commission should not be destructive in the market and it should be within the expense management ratio.

"Not that every insurer can pay a higher commission and hence we have suggested a cap. The whole idea is to reduce discrepancy in commission payout and create a level playing field," he said.
On the claim settlement of recent Chennai floods, Vijayan said that the regulator is monitoring the issue.
"Even though the claims are high, the insurers are doing it very well, we are monitoring the situation. Few days ago we had some meeting with stakeholders from Chennai markets and discussed the issues at length," he said.