The deadline for compliance of Insurance Regulatory and Development Authority of India (IRDAI) guidelines issued on October 19th, 2015 for insurers ends on January 18th, 2016. According to the guidelines, foreign investors can nominate non-CEO key management personnel in a domestic insurance joint venture, provided it is approved by the board. However, the majority of directors on the board should be the members nominated by the domestic promoters.
These directives are applicable to both life and non-life insurers, regardless of the extent of foreign shareholding. As per an IRDAI notification in December 2015, the guideline offers insurers a maximum of 6 months for compliance, from the date of issue of the guidelines.
Following the FDI hike to 49% in 2015, almost a dozen foreign companies have expressed their interest to increase their stake in insurance joint ventures. ICICI Lombard’s foreign partner is in the process of raising its stake to 35%, bringing in ₹ 1550 crore. In this regard, Mr. Sanjay Datta, Chief - Claims and Underwriting, ICICI Lombard, said, "We are already under the process of increasing the FDI to 35% and all the necessary compliances will be put in place within stipulated time."
Most insurers are working towards complying with the IRDAI ordinances within the pre-determined deadline. However, some insurers are seeking revision of the guidelines relating to foreign investments from the regulatory body.