The Central Government on 30th July, 2020, notified the Insurance Regulatory and Development Authority of India (Regulation of Insurance Business in Special Economic Zone) (Amendment) Rules, 2020 amending the previous Rules of 2015.
The new rules of 2020 provide for the regulation of intermediaries or insurance intermediaries in Special Economic Zones (SEZs), the Insurance Regulatory and Development Authority of India(IRDAI) can allow a registered intermediary or insurance intermediary to transact business in Special Economic Zones if the following conditions are satisfied:
- That set up their place of business in the Special Economic Zone (SEZ) with the prior approval of the Insurance Regulatory and Development Authority of India.
- That such approval includes approval for acting as an intermediary or insurance intermediary that solicits, procures or services insurance business, from entities within the SEZs and outside India, subject to the Special Economic Zones Act, 2005 and the related rules.
- That acting as intermediary or insurance intermediary with SEZs, there shall be compliance with guidelines of the Insurance Regulatory and Development Authority of India in terms of the So=pecial Economic Act, 2005
These conditions are also applicable to an intermediary or insurance intermediary from outside the country who wish to transact business as intermediary or insurance intermediary in SEZs.
The IRDAI may also direct that intermediaries or insurance intermediaries transacting in SEZs should comply with its directions and with relevant laws, rules and regulations that may be issued by it periodically.
