General insurers can bring out an IPO, post 10 years of operation

Irda says that approval for public issue would be valid only for one year

Insurance Regulatory and Development Authority (Irda) has finalised the norms for initial public issue (IPO) by general insurers and said that only those who have been in operation for 10 years, will be entitled to bring out an IPO.

In the final norms published in the gazette, it has further said that the approval granted by the authority would be valid only for a year, within which the company has to file the Draft Red Herring Prospectus with Securities and Exchange Board of India (Sebi) under the ICDR Regulations.

Among the other guidelines published in the gazette, Irda (Scheme of Amalgamation and Transfer of Life Insurance Business), Regulations 2013 said that companies have to give a two months notice of the intention to implement the scheme and this should be prior to application of implementation of the scheme.

Irda, has said, that it may direct such companies, to sent a direct notice of this application to every Indian citizen who is a policyholder. After in-principle approval is given by Irda, the life insurer would need to take approval from other authorities such as Foreign Investment Promotion Board, Sebi, Reserve Bank of India and Competition Commission of India (CCI). After receiving these approvals, insurers would need to get the final nod from Irda.

In the Irda (Third Party Administrators-Health Services), Regulations 2012, published in the gazette, Irda has asked TPAs to seek prior approval from it to change in the shareholding, exceeding 5% of paid-up share capital.

The Health Insurance Guidelines gazetted by Irda have said that entry age for a health insurance policy can be up to 65 years. Irda has asked insurers to not deny renewals for products on grounds of age, except areas like travel insurance.

The guidelines have allowed non-allopathic treatment to be provided coverage, provided that treatment has been taken in a government or government authorised institution. Option to migrate to other suitable health insurance policy has been given to consumer, under the rules.