HYDERABAD: Insurance Regulatory and Development Authority (IRDA) has asked the domestic insurance companies, whose applications for permission to
open representative offices aboard are pending, to apply again in conformity with the fresh guidelines.
The new guidelines specify that the overseas representative office is an extended arm of Indian firm, hence is not allowed to contract any liability outside India.
While the policies should be issued only in Indian rupees and to non-resident Indians, the acceptance of the proposal and underwriting of risks shall be done only in India, CR Muralidharan, Member IRDA, said in the notification issued recently.
The companies can undertake development and promotional activities such as gathering financial, economic and commercial information, educating prospects about advantage of insurance, carrying out promotional activities and promoting company's products, customer service activities, identifying prospects living in the host country, among others.
It further points out that all the insurance policies proposed to be issued shall be in tune with KYC norms and anti-money laundering guidelines besides complying with all other laws including Foreign Exchange Management Act, 1999.
Many private insurance players, including the country's fourth largest Reliance Life, are planning to expand their footprint in offshore market.
Reliance Life had approached Insurance Regulatory and Development Authority for their guidance regarding overseas operations.
Source:Economictimes
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