IRDAI Circular Mandates Disclosure Of Insurance Claims Status
While the circular takes immediate effect, insurance companies have until 30 June 2024, to comply with its provisions outlined across 70 pages
The Insurance Regulatory and Development Authority of India (Irdai) issued a comprehensive master circular on corporate governance for insurers. While the circular takes immediate effect, insurance companies have until 30 June 2024, to comply with its provisions outlined across 70 pages.
The circular stipulates various disclosure obligations for insurers in their annual accounts. These include commission and expense ratios, solvency margin, persistence ratio for life insurance businesses, financial performance and growth rate, description of risk management architecture, details of claims intimated, disposed of and pending, disclosure of pecuniary relationships or transactions of Non-Executive Directors, remuneration package elements for MD & CEO, directors and key management persons, payments to group entities from policyholders' funds and other significant matters impacting the insurer's financial position.
The circular also sets criteria for directors' eligibility, including:
- Maximum age limit for non-executive directors, including the chairperson, at 75 years.
- Independent directors may serve for a maximum of five consecutive years, with the option for re-appointment for a second term subject to a special resolution.
- No independent director can serve for more than two consecutive terms.
- Managing Director (MD), CEO, or Whole-time Director cannot hold the position for longer than 15 years.
These measures aim to enhance transparency, accountability, and governance within the insurance sector.
