Equity investment limit for Insurance companies raised to 15 %
The Insurance Regulatory and Development Authority (IRDA) has raised the equity investment limit for the Insurance companies to 15% up from existing 10%.
- The move follows the Finance Ministry pitching for raising the equity investment limit for insurance giant LIC to up to 30%.
- With this permit Insurance companies will be allowed to increase their investments in equity in a given company from the present level of 10% to a higher level of 12% and 15% depending upon the size of the controlled fund of any given insurer.
- The move would not have any adverse effect on the financial health of the insurer as the insurance companies control sizeable funds.
- Four years back, IRDA had amended investment norms to forbid an insurer from holding more than a 10% stake in a company.
Other steps:
- IRDA also approved the health insurance regulations to enable a more consumer-friendly system. It has referred the matter to insurance advisory committee to add more clarity on bancassurance regulation.
- IRDA also gave nod to standard proposal form to record full details of a policyholder as per the KYC norms for sale of life insurance products.
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Month: Current Affairs - February, 2013