The Ministry of Finance on 19th May 2021 has published the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2021 to further amend the Indian Insurance Companies (Foreign Investment) Rules, 2015.
The Amendment substitutes rule 4 which states that an Indian Insurance Company having foreign investment and its majority of its directors, majority of its Key Management Persons, and at least one among the chairperson of its Board, its managing director and its Chief Executive Officer, shall be Resident Indian Citizens.
An Indian Insurance Company having foreign investment exceeding 49% for a financial year for which dividend is paid on equity shares and for which at any time the solvency margin is less than 1.2 times the control level of solvency, not less than 50% of the net profit for the financial year shall be retained in general reserve; and not less than 50% of its directors shall be independent directors, unless the chairperson of its Board is an independent director, in which case at least one-third of its Board shall comprise of independent directors.
