Registration of Insurance Company – Check Full Procedure. Understanding The Rules Regarding Registration Of Insurance Company, The procedure for application of registration of an insurance company is very cumbersome. We have made an effort to simplify the steps to be followed for the registration of an insurance company.
Registration of Insurance Company – Check Full Procedure
The Insurance Act, 1938 extends to whole of India.
India Insurance company means any company engaged in insurance business and
- Which is Formed and registered under Companies Act
- In which holding by any foreign company either directly or via its subsidiaries does not exceed 26% of paid up capital of such Indian Insurance Company.
- Moreover the only purpose of such Indian Company is to carry Life Insurance Business, General Insurance business or re-insurance business.
No person after the commencement of the Insurance Act, 1950, should carry any class of Insurance Business in India unless he is —
- A Public Company
- A Society registered under the Co-operative Society Act.
- A body Corporate incorporated under law of any country outside India but it should not be a private company.
However the above restrictions may be relaxed by the Central Government by notification in the official gazette.
Procedures Relating to Registration
After the act has commenced no person shall carry insurance business unless he has obtained Certificate of Registration. If the person is in the Business of Insurance before commencement of act then he should obtain registration within 3 months post commencement of act.
In order to register as an Insurance company applicant should file the application along with aforesaid documents.
- Certified copy of Memorandum of Association
- Certified copy of Article of Association
- Name, Address and occupation of any of the directors if Insurer is a company
- Name, address of any manager of the company or name & Address of any other person to whom the notice may be served on behalf of the company.
- Detail about the class or classes of insurance business to be undertaken by the company.
- Certified copy of prospectus if such prospectus is issued by the company. The rates, advantages, terms etc to be affected by the Insurance Company.
- An affidavit by the principal officer of the Insurer wherever required.
- Receipt of payment made as required by the Authority.
On receipt of application for registration and after making appropriate enquiry if the controller is satisfied that-
- The Company is financially Sound
- The Interest of the general public will be served
- The volume of the business, capital structure & earning capacity are adequate
- The Applicant has complied with all the provisions of the act, he may register the applicant as Insurer and grant hi, a certificate of Registration.
In the case of any insurer having his principal place of business outside India, the Authority, shall withhold registration or shall cancel a registration already made, if he is satisfied that in the country in which such insurer has his principal place of business Indian nationals are debarred by the law.
The Authority shall cancel the registration of an insurer either wholly or partly as the case may be-
- If the insurer fails to comply with the provisions relating to deposits or if the insurer fails to comply with provisions as to excess of the value of his assets over the amount of his liabilities as per sec 64VA.
- If the Insurer is adjudged as Insolvent
- If the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer
- If the whole of the deposit made in respect of insurance business has been returned to the insurer
- Failing to comply with the act
- If the Authority has reason to believe that any claim upon the insurer arising in India under any policy of insurance remains unpaid for three months after final judgment in regular course of law.
Renewal of Registration
- An insurer who has been granted a certificate of registration under section 3 shall have the registration renewed annually for each year on 31st march of that year.
These were the basic list of steps to be followed for the application of registration of Insurance Company.
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