You are here: Home » PTI Stories » National » News
Business Standard

IRDAI floats draft norms for providing loans to employee

Press Trust of India  |  New Delhi 

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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 03 2016. 21:57 IST