The Insurance Regulatory and Development Authority of India vide its notification dated 20th April 2021 has published the IRDAI (Manner of Assessment of Compensation to Shareholders or Members on Amalgamation) Regulations, 2021.
The Object of this regulation is to provide for the manner of assessment of compensation for the shareholders or members whose interests in, or rights against, the transferee insurer resulting from amalgamation are less than his interest in, or rights against the original insurer.
Every person who, immediately before the appointed date, is registered as a shareholder or a member of the original insurer and the interest in, or rights of such shareholder or member against the transferee insurer are less than the interest in, or rights against the original insurer, shall be eligible for compensation in accordance with these regulations, Provided that the eligible shareholders or members shall be considered for payment of such compensation only where the residual value of the assets is positive.
