Insurance regulator IRDAI today floated draft norms on providing loans or temporary advances to full-time employees of the insurers.
"In view of the above, it has necessitated to frame regulations on loans and temporary advances to the full time employees of the insurers...No loans or temporary advances to non whole-time Director or to their relatives except as provided under Section 29 (1) of the Insurance Act, 1938," the draft said.
Insurance and Regulatory Development Authority of India said employees may be granted loans or temporary advances for loan for purchasing of car, loan for purchasing of personal computer, loan for purchasing of furniture.
Besides, loan for constructing or acquiring a house for personal use and advance for festival can be given by insurance company.
Any other purpose as may be specified by the Authority, it added.
"The interest rate charged on loan or temporary advances to whole-time directors and other officer cannot be lower than the rate charged on loans or temporary advances to the insurer's own employees," it added.
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