VERSED | The Veritas Legal Newsletter

Insurance | July – September 2024

Regulatory Updates

Prevention of Money-Laundering (Maintenance of Records) Amendment Rules, 2024

The IRDAI has introduced certain amendments to the Prevention of Money-Laundering (“Maintenance of Records”) Rules, 2005 (“PML Rules“). The amendments introduced by the IRDAI include the following: (i) for complying with Know your Customer (“KYC”) norms, the Insurers shall adopt the procedure specified in Rule 9 (1C) of the PML Rules; (ii) in cases where updated KYC information is obtained from a client, such updated information has to be provided to the Central Know Your Customer Registry (“CKYCR”) as per Rule 9(1D) and if information of any update in the KYC record of an existing client is informed by the CKYCR, the Insurers shall retrieve the updated KYC records from the CKYCR and also update the KYC record maintained by it.

Master Circular on Protection of Policyholders’ Interests, 2024

The IRDAI by way of a circular dated 5 September 2024 has issued the Master Circular on the Protection of Interests of Policyholders (“Master Circular”).The Master Circular has repealed approximately 30 prior guidelines and circulars issued by the IRDAI in relation to protection of interest of policyholders.The Master Circular, inter alia, provides a summary of the important and relevant information at various stages of an insurance contract for the prospects/ policyholders / customers. The Master Circular includes provisions in relation to protection of policyholders interest and provides the different returns required to be filed by an Insurer in relation to issuance of insurance policies.

The Master Circular provides in detail the information that a prospect/policyholder should know before buying a life, health or retail general insurance policy. Provisions in relation to, inter alia, activities undertaken prior to sale of insurance policies, proposal for sale of insurance policies, issuance of insurance policies, servicing of policyholders and settlement of claims and other service related aspects have been set out in the Master Circular.

Circular- Subscribers to Other Forms of Capital

The IRDAI notified the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024 (“Registration Regulations, 2024”) and also issued the Master Circular on Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers, 2024 on 15 May 2024 (“Master Circular on Registration, 2024”) earlier in the year. Pursuant to the circular dated 6 September 2024 the IRDAI has, inter alia, introduced the provision that the other forms of capital issued by an Insurer may be subscribed by any entity incorporated, set-up or registered under any Indian law or any entity incorporated, set-up or registered under any law in force in any Financial Action Task Force compliant jurisdiction.   

For more information contact:

Shubhangi Pathak
Practice Head – Insurance
shubhangi.pathak@veritaslegal.in

DISCLAIMER
VERSED by Veritas Legal intends to provide the readers with an overview of some of the noteworthy legal developments for education / information purposes only. This newsletter should not be construed or relied on as legal advice, or to create a lawyer-client relationship. Readers should reach out to us for any specific factual or legal questions or clarifications; and are encouraged to seek legal advice before acting on any information provided herein. The enclosed information is available in the public domain and shall not be construed as dissemination of any confidential information.

Back To Top
Search

DISCLAIMER

The Bar Council of India does not permit soliciting work or advertising by advocates in any manner or form. By clicking on "AGREE" below, the user acknowledges and confirms that:

  1. There has been no advertisement, personal communication, solicitation, invitation or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
  2. The website is a resource solely for the purpose of providing general information about Veritas Legal at the user’s own risk, cost and liability; 
  3. The information provided in this website shall not be construed as legal advice or create any lawyer-client relationship in any manner whatsoever; 
  4. The links provided on this website shall in no way be considered referrals, endorsements or affiliations with the linked entities and Veritas Legal shall not hold responsibility for the content of such links.

The user shall not hold Veritas Legal responsible for any action taken relying upon the content of the website. In cases where the user has any legal issues and requires assistance, he/she/it must seek independent legal advice.

AGREE DISAGREE