Insurers must seek nod for top-level changes: Irda

The Insurance Regulatory and Development Authority (Irda) pointed out that its prior approval was essential for appointment, re-appointment or termination of CEO, whole-time director or managing director of an insurance company.

"We advise that prior approval of the authority is a statutory requirement and clearance will be subject to detailed due diligence conducted by it," Irda said.

The regulator observed that insurers sought approvals without providing adequate time to examine such proposals and there were instances where approvals were sought post facto. Irda said that such proposals should be made at least 30 days prior to the commencement of appointment to allow sufficient time to it.