Capital and net-worth requirements require insurance intermediaries to maintain unencumbered owned-fund investments, promptly cure shortfalls, and report compliance. Insurance intermediaries seeking registration must maintain prescribed minimum paid-up capital and net worth. Capital or contributions must remain ... Summary
Capital and net-worth requirements require insurance intermediaries to maintain unencumbered owned-fund investments, promptly cure shortfalls, and report compliance.
Insurance intermediaries seeking registration must maintain prescribed minimum paid-up capital and net worth. Capital or contributions must remain unpledged and unencumbered, while investments by promoters, shareholders, partners or members must come from owned funds and not borrowings or loans. An IIIO must immediately restore any net-worth shortfall and report compliance. Paid-up capital and net-worth certification by the statutory auditor, Chartered Accountant or Practising Company Secretary must be submitted half yearly.
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