Registration of Insurance Company in India
Keywords:
Insurance, Memorandum of Association, Article of Association, IRDA, Registration.Abstract
In recent times, the Indian Insurance Industry has witnessed continued growth in demand and is yielding tremendously towards the National Economy. The substantially increasing market size of the Indian Insurance Industry clearly indicates its growth potential, and thus forming an insurance company can be incredibly lucrative. But disparate to the formation of an un-regulated business, the formation of an insurance company entails the awareness of the distinct variety of legal issues like the capital requirements, registration procedures, obtaining the registration certificate, the manner of investments, etc. And thus, discerning the legal framework required for the formation of Insurance Company becomes relevant. Accordingly, the present paper examines and discusses all the matters relating to the formation of Insurance Company. At the outset, the paper discusses the scope of the Insurance Industry in India followed by the procedure for the formation of a Company under the Companies Act, 1956. In the later section, the procedure for registration of Insurance Company under the Insurance Act is discussed. The paper also states the manner in which the application for registration is to be made, what all documents are to be attached to the application, and all the other relevant requirements for the registration of an Indian Insurance Company.
References
1. Jain Rohit. Formation of Insurance Contract, Law Column, 2021.
2. Number of Insurers across India as of March 2020, As per the report of Statistica
3. Indian Insurance Industry Overview, By IBEF Organization
4. Motor Vehicle Act, 1988 (Act No. 59 of 1988)
5. Section 146 of the Motor Vehicle Act, 1988 Necessitates insurance against third party risk
6. Seventh Schedule, List I Union List, Entry 47
7. Insurance Act, 1938 (Act No. 4 of 1938)
8. Section 2(8) of the Insurance Act, 1938 ‘Insurance Company’
9. A Statutory body formed by the virtue of Insurance Regulatory Development Authority, 1999 (Act No. 41 of 1999)
10. Companies Act, 1956 (Act No. 1 of 1956)
11. Section 7 of the Companies Act, 1956 Incorporation of a Company
12. Section 3(1)(a) of the Companies Act, 1956
13. Section 4 of the Companies Act, 1956 Memorandum
14. See Section 4(6) of the Companies Act, 1956
15. Schedule 1 of the Companies Act
16. See at www.mca.gov.in/
17. Section 5 of the Companies Act, 1956 Articles
18. See Section 5(6) the Companies Act, 1956
19. Section 10 of Insurance Act, 1938 Separation of Accounts
20. Requirements of Capital
21. Act No. 13 of 2013
22. Act No. 15 of 1992
23. Section 6A of the Insurance Act, 1938 —Requirements as to capital structure and voting rights and maintenance of registers beneficial owners of shares
24. Restriction on name of Insurer
25. Insurance Regulatory and Development Authority Act, 1999 (Act no. 41 of 1999)
26. Established under Section 3 of the IRDA Act, 1999
27. Section 3(2) of the IRDA Act, 1999
28. Appointment of Controller of Insurance is governed by Section 2B of the Insurance Act, 1938
29. Section 4 of IRDA Act, 1999—Composition of Authority.
30. Section 5 of IRDA Act, 1999—Tenure of Office of Chairperson and Other Members.
31. Certificate means a certificate of registration granted or renewed by the authority under the IRDA (Registration of Indian Insurance Company) Regulation, 2000.
32. Section 3 of Insurance Act, 1938 Registration
33. IRDA (Registration of Indian Insurance Company) Regulation 2000
34. The Au thority checks the Financial Condition, General Management, Volume of the Business, Interest of the General Public, and Compliance with the provisions u/s 2C, 5, 31A, 32 of insurance Act, 1938
35. Section 3(2A) of Insurance Act, 1938
36. Chapter II, Section 5(2) of IRDA (Registration of Indian Insurance Company) Regulation 2000
37. The form can be seen by clicking here (IRDA/R1, Page 12)
38. Regulation 5 of IRDA (Registration of Indian Insurance Company) Regulation, 2000
39. Chapter III of IRDA (Registration of Indian Insurance Company) Regulation, 2000
40. Other Requirements are mentioned under Chapter III , Section 10(2) of IRDA (Registration of Indian Insurance Company) Regulation, 2000
41. The form can be seen by clicking here (IRDA/R2, Page 20)
42. Choudhary RN. Law of Insurance, 3rd Ed. 2018, Pg 1
43. Section 3A of Insurance Act, 1938
44. Provided under Section 15 of IRDA (Registration of Indian Insurance Company) Regulation, 2000—Manner of Payment of Fees of Registration
45. See here, Page 24 (IRDA/R5)
46. See here, Page 24 (IRDA/R4)
47. Investment of Assets
48. IRDA (Investment) Regulations, 2000
49. Regulation 4(1) of the Regulation of Investment in Life Insurance IRDA (Investment) Regulations, 2000
50. Regulation 2(b), IRDA (Insurance Advertisements) Regulations, 2000: Insurance Advertisement
51. Regulation 2(c), IRDA (Insurance Advertisements) Regulations, 2000: Intermediary or insurance intermediary
52. Regulation 1(d) IRDA (Insurance Advertisements) Regulations, 2000: Unfair and Misleading Advertisement
53. Regulation 11 IRDA (Insurance Advertisements) Regulations, 2000: Procedure for action in case of complaint
54. Section 32-B of Insurance Act, 1938 Insurance Business in Rural and Social Sector
55. Regulation 2(c), IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Rural sector
56. Regulation 2(d), IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Social sector
57. Regulation 2(e), IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Unorganized sector
58. Regulation 2(f), IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: economically backward or vulnerable sector
59. Regulation 3(a) IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Obligation to Rural Sector
60. Regulation 3(a) IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Obligation to Rural Sector
61. Regulation 3(b) IRDA (Obligations of insurers to Rural or Social Sectors) Regulations, 2000: Obligation to Social Sector
62. Act No 43 of 1961
63. CIT vs. Great Eastern, 17 ITR 173
