Date: 18th May, 2016
Guidelines for Corporate Governance for insurers in India
The Authority had initially issued Guidelines on Corporate Governance for insurance companies vide circular dt. 5th August, 2009. The Authority had also issued separate guidelines for appointment/reappointment and remuneration of MD/CEO/WTD as well as other Key Management Persons (KMPs), as also the Appointment of statutory auditors of insurers through various circulars.
In view of the extensive changes to the governance of companies brought about by the Companies Act, 2013, it was decided to review the various guidelines of the Authority relating to the governance of insurance companies. After due consultation with the industry representatives and other stakeholders and professionals, the Authority has drawn out the revised Guidelines on Corporate Governance for insurance companies. The revised guidelines combine the stipulations regarding the Corporate Governance practices, appointment of MD/CEO/WTD and other KMPs as well as the appointment of statutory auditors of insurers. These are applicable from FY 2016-17 onwards. These guidelines shall be applicable to all insurers granted registration by the Authority except that:
(i) reinsurance companies may not be required to have the Policyholders’ Protection Committee; and
(ii) branches. of foreign reinsurers in India may not be required to constitute the Board and its mandatory committees as indicated herein.
All insurers are hereby advised to ensure compliance with the guidelines