Irda seeks common stand on surplus funds

The Insurance Regulatory and Development Authority (Irda) will take a common stand along with other regulators on the issue of parking surplus funds with the government.

While raising funds for its operations, Irda ended up with a marginal surplus. According to the insurance regulator’s Chairman J Hari Narayan, Irda has been communicating with the finance ministry on the issue.

“The issue is not new and it has been going on for some years now,” he said, while refusing to specify how much surplus funds Irda had. It may be recalled that the finance ministry had asked market regulator Sebi and insurance watchdog Irda to deposit surplus funds with the government.

The directive followed suggestions by the Comptroller and Auditor General (CAG) of India, which felt the move would improve the regulators’ accountability to the exchequer.

Surplus funds generated by financial sector regulators through fees and penalties on companies are now parked in their respective accounts.