Insurance regulator IRDA today said that insurance companies can neither terminate nor appoint chief executives and directors without the prior approval of the authority."No appointment, re-appointment or termination of CEOs, whole-time directors or managing directors of an insurance company is valid without the previous approval of IRDA," the regulator said in a release.It further said that the prior approval of IRDA is a statutory requirement and clearance would be subject to detailed due diligence conducted by it.All the insurers are also advised that such references seeking prior approval should be made in the required format, it said, adding, it should reach IRDA at least 30 days prior to the commencement of appointment to allow sufficient time for the regulator to examine such proposals.
