TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021
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....ernational Financial Services Centre under regulatory purview of The International Financial Services Centres Authority Act, 2019 (50 of 2019). 3. Definitions - (1) In these Regulations, unless the context otherwise requires- (a) 'Act' means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) 'Applicant' means - (i) an 'insurer' registered with the Insurance Regulatory and Development Authority of India under section 3 of the Insurance Act, 1938 (4 of 1938), (ii) a Foreign Insurer or Foreign Re-insurer; (iii) a Society of Lloyd's on behalf of Members of Lloyd's; (iv) a 'Branch Office of foreign insurer' or 'Lloyd's India' registered by the IRDAI; (v) a public company or a wholly owned subsidiary of an insurer or a Re-insurer which is formed and registered under the Companies Act, 2013; (vi) an insurance co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in any State relating to cooperative societies or under the Multi-State Cooperative Societies Act, 1984 (51 of 1984); (vii) a bod....
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....t 1871 of the United Kingdom; (o) 'Lloyd's IFSC' means the branch office of the Lloyd's granted certificate of registration by the Authority under these Regulations to transact insurance or re-insurance business; (p) 'Managing General Agent' or 'MGA' means: - (i) a body corporate incorporated outside India that is authorized to undertake insurance or reinsurance or both pursuant to a binding agreement with a Foreign Insurer or Foreign Reinsurer; or (ii) a company incorporated under the Companies Act, 2013 that is authorized to undertake business of insurance or re-insurance or both pursuant to a binding agreement with a Foreign Insurer or Foreign Re-insurer. (q) 'Parent Entity' or 'Head Office' means the Applicant as defined under clause (b) of this sub-regulation or such other affiliate of the Applicant that has been designated as 'Head Office', with the approval of the Authority; (r) 'Private company' and 'public company' have the meanings respectively assigned to them in clause (68) and clause (71) of Sec. 2 of the Companies Act, 2013 (18 of 2013); (s) 'Net Owned Fund' or 'NOF' means the sum of paid-up equity capital....
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.... (e) the Board of the Applicant undertakes to meet all liabilities arising out of IIOs insurance or re-insurance business, as the case may be; (f) The Board of the Applicant undertakes to comply with the assigned capital, solvency and other requirements as may be specified by the Authority from time to time. (2) A foreign insurer or foreign re-insurer or MGA or Lloyd's, as the case may be, desirous of setting up branch in an unincorporated form in an IFSC, shall meet with the following requirements - (a) the Applicant is registered or licensed for transacting insurance or re-insurance business, or both, in its home country or country of its incorporation or domicile; (b) the Applicant has been granted No Objection Certificate by the regulatory or supervisory authority of its home country or country of its incorporation or domicile, to set up an IIO in an IFSC; (c) the Applicant desirous to transact re-insurance business, shall comply with Net Owned Fund requirement specified under sub-section (3) of section 6 of the Insurance Act, 1938; (d) the Board of the Applicant undertakes to comply with the assigned capital, solvency and ot....
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....tion (7) of regulation 17 of these Regulations; (e) the Applicant shall submit all the details and information as may be required and shall comply with additional conditions as may be specified by the Authority. (4) A public company or a wholly owned subsidiary of an insurer or a re-insurer, desirous of setting up an IIO in an IFSC, shall be a company limited by shares, which is formed and registered under the Companies Act, 2013; (5) An insurance co-operative society desirous of setting up an IIO in an IFSC shall be a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co-operative societies or under the Multi-State Cooperative Societies Act, 1984 (51 of 1984); (6) A Body corporate incorporated under the law of any country outside India, not being of the nature of a private company, desirous of setting up its place of business in an IFSC shall meet with the following requirements: (a) it establishes its place of business in an IFSC, under the provisions of the Companies Act, 2013; and (b) it is registered or certified in a national regu....
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....llowing class of businesses as may be permitted by the Authority subject to such conditions as may be specified:- (a) Life Insurance Business; (b) General Insurance Business; (c) Health Insurance Business; or (d) Re-insurance Business. Provided that the IIO registered as place of business of Indian Insurer or Branch Office of Foreign Insurer or Re-insurer shall be permitted to transact such class of business which is permitted to the Applicant by its home country regulatory or supervisory authority. 11. An IIO shall conduct its business in any freely convertible foreign currencies other than INR, with such persons, whether resident in India or otherwise, as may be permitted by the Authority. 12. An IIO shall not engage itself in any business other than for which the registration has been granted by the Authority. 13. An IIO registered to transact direct insurance business may be permitted to do so within the IFSC, from other SEZs and also from outside India. 14. The IIO registered to transact direct insurance business shall not write direct insurance business from the DTA except in accordance with Section 2CB of the Insurance Act, ....
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....y, shall be maintained by the Applicant at all times during the subsistence and validity of registration of IIO. Provided further that where the Applicant is an MGA, the relevant Foreign Insurer or Foreign Reinsurer shall comply with the Assigned Capital requirements. (3) Paid-up Equity Capital: A Public Company, a Wholly Owned Subsidiary of an insurer or a re-insurer, an insurance cooperative society or a Body Corporate seeking registration from the Authority shall comply with paid-up equity capital requirements as prescribed under sub-section (1) of section 6 of the Insurance Act, 1938. (4) Solvency Margin Requirement: (i) An Applicant registering an IIO as 'place of business' of Indian Insurer, 'branch office' of the foreign insurer, foreign re-insurance, MGA or Lloyd's shall maintain such solvency margin for its IIO, as stipulated by its home country regulatory or supervisory authority; Provided that - (a) Such solvency margin may be maintained in the home country, country of its incorporation or domicile; (b) The assets backing such solvency margin shall be invested as per the requirements of its home country regulatory or superv....
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....) An officer in-charge of finance and accounts having relevant experience. (ii) An Applicant of Lloyd's IFSC shall appoint - (a) Principal Officer, and (b) An officer in-charge of finance and accounts having relevant experience. Provided that an officer in-charge of finance and accounts of Lloyd's IFSC shall also be responsible for finance and accounts related matters of Service Companies of Lloyd's IFSC; (iii) An Applicant of Service Company of Lloyd's IFSC shall appoint - (a) Principal Officer, and (b) An Officer in-charge of underwriting of risk having relevant experience. (iv) The above-mentioned officers shall - (i) be in direct employment of the IIO or the Service Company of Lloyd's IFSC as the case may be, and shall be resident in India; and (ii) satisfy the 'fit and proper' criteria as specified by the Authority. (8) The Applicant other than those mentioned in sub-regulation (7) of Regulation 17, with prior permission of the Authority, shall :- (a) appoint at least the following Key Managerial Persons (KMP) who shall be responsible for the day to day administration an....
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....tion: For the purpose of implementation of these Regulations and matter incidental thereto, or in order to facilitate and regulate financial services related to insurance and re-insurance in an IFSC, the Authority may specify such norms, procedures, processes, manners or provide clarification and relaxations, by way of guidelines or circulars, as it may deem fit. 19. Inspection, Investigation and Information: The Authority shall have the power to inspect and/or investigate the affairs of the IIO including calling for the information from the IIO, its employees and the Applicant, so far as it relates to its activities as an IIO. 20. Action in case of Default: (1) If pursuant to an inspection and/or investigation or otherwise, the Authority is of the opinion that the operations of an IIO are not being conducted in accordance with the provisions of the Act, rules or regulations made or circulars and guidelines issued thereunder or its activities are not in the interests of the insurance market or in the public interest, the Authority may take appropriate disciplinary action against it including but not limited to suspension or cancellation of certificate of registration....
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....erson responsible for the affairs of the proposed IIO Provide a certified copy of the board resolution appointing the person responsible for affairs of IIO 9 Regulatory approvals Provide copies of regulatory approvals for opening of an office in SEZ for conducting insurance business in the SEZ. Annexure - 10 Annual Reports Annual reports for the past 3 years. Annexure - 11 Details of the Office proposed to be opened: a. Name of the office: b. office Address: c. Address for Communications (state the name of the Principal Officer, telephone numbers, fax numbers, mobile number, e-mail address and such other details: d. Principle Officer for IIO & Key Management Personnel and allocation of responsibilities.(Proposed): e. Organizational structure. Reporting relationships of the IIO to the insurer: f. Planned infrastructure at proposed office 12 Details of payment of fee 13 Solvency margin of the Indian insurer for three years preceding the date of application Section B: IIO Business Strategy 14 Types of Insurance or Re-insurance arrangem....
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.... I, the undersigned, solemnly declare that the facts given in this application form on behalf of the Applicant company, are true and that the projections and estimations are based on reasonable assumptions. Place Date: Signature of the Authorised Person (with Designation and Seal) • English Translation: If any of the document which is not in English, a certified English translation is required. The English translation to be certified "true copy" by the insurance supervisory authority in country of the Applicant or an external legal counsel. FORM - B APPLICATION BY A FOREIGN INSURER OR FOREIGN RE-INSURER FOR GRANT OF CERTIFICATE OF REGISTRATION AS AN IIO S.No. Particulars Applicant's Response Remarks Section A : Company Profile 1 Name of the Applicant 2 Address of its registered office 3 Date of incorporation as a Insurer / Re-insurer: [DD/MM/YYYY] Certificate of incorporation/Deed of Covenant/Other valid proof 4 Registration No. (issued by the regulatory Authority in the country of the Applicant's domicile) and date of first registration [DD/MM/YYYY] &nbs....
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....nagement Personnel and allocation of responsibilities.(Proposed): (e) Organizational structure. Reporting relationships of the IIO to the holding company (f) Planned infrastructure at the proposed office 15 Details of payment of fee 16 Amount of Assigned Capital and the form in which it is maintained. Please indicate the sources of funds to meet the "Assigned Capital" requirement. 17 Particulars of Previous Application: Has the Applicant ever applied for license in International Financial Services Centre to carry out insurance business? If so, give particulars. 18. Details of shareholders of foreign (re)insurer: [Please give full name, address, percentage of holding in the paid up capital of the insurer, Occupation, Qualifications and Experience, Number of shares held and Percentage of share capital in the company] Please attach separate sheets if necessary. Details of persons holding more than 1% of the issued capital of the Applicant and promoters are to be given in separate statements. Full Name [first, middle, surname]/ Name of the Corporate Date of Birth/ Date of incorpora....
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....d in underwriting and in training of underwriters and upgradation of skills of the local persons by the head office. Annexure - 26 Retention Limits and Reinsurance The nature of re-insurance arrangements should be described fully, giving the following details: • The basis of reinsurance. • Terms of reinsurance. • Manner of re-insurance support from head office • Retention limits - in India • Retrocession within India • Retention limits - outside India Annexure - 27 Internal Controls The company will need to establish a set of procedures and norms for various activities. The manner in which these will be monitored should be described. Annexure - 28 Expenses of Administration The proposed expenses as a per cent of premium. Annexure - 29 Financial Projections A description of the model used for financial projections should be provided, based on assumptions, for a period of 5 years, for each year from the start. Please provide details against each of the items listed in the next cell. (Amount should be in USD) (a) Amoun....
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....nes of insurance business Lines of Insurance or Re-insurance Business or both Countries of operation (separate for MGA and the Foreign Insurer or Foreign Re-insurer) 8 Amount Of Authorized capital, Subscribed capital and Issued Capital & Face value of shares and their numbers of the relevant Foreign Insurer/s or Foreign Re-insurer/s or both. (separate for MGA and the Foreign Insurer or Foreign Re-insurer) 9 Name, Address and contact details of - 1) Authorized person to make the application; and 2) the person responsible for the affairs of proposed IIO Provide a certified copy of board resolution in support of both. (separate for MGA and the Foreign Insurer or Foreign Re-insurer) 10 Net Owned Funds of the relevant Foreign Insurer or Foreign Re-insurer, at close of immediately preceding financial year (Amount to be specified as Rs. In crore. Currency conversion shall be as per rate prevailing at the time of application) 11 Credit rating for the last 3 years from internationally renowned credit rating agencies (minimum of 'BBB' or its equivalent) of the Foreign Insurer or Foreign Re-in....
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.... 19 Particulars of Previous Application: Has the applicant ever applied for license in International Financial Services Centre to carry out insurance business? If so, give particulars. 20. Details of shareholders ( Separate for MGA and the Foreign Insurer or Foreign Re-insurer) as applicable [Please give full name, address, percentage of holding in the paid up capital of the insurer, Occupation, Qualifications and Experience, Number of shares held and Percentage of share capital in the company] Please attach separate sheets if necessary. Details of persons holding more than 1% of the issued capital of the applicant and promoters are to be given in separate statements. Full Name [first, middle, surname]/Name of the Corporate Date of Birth/ Date of incorporation Address with Telephone Nos., Fax Nos., E-mail Qualifications* Experience* Present occupation* No. of equity (voting rights) shares and percentage of total holding Remarks (1) (2) (3) (4) (5) (6) (7) (8) Mr./Ms. ....
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....ngements should be described fully, giving the following details: Annexure - • The basis of re-insurance. • Terms of re-insurance. • Manner of re-insurance support from head office • Retention limits - in IFSC • Retrocession within IFSC • Retention limits - outside IFSC 29 Internal Controls The company will need to establish a set of procedures and norms for various activities. The manner in which these will be monitored should be described. Annexure - 30 Expenses of Administration The proposed expenses as a per cent of premium. Annexure - 31 Financial Projections A description of the model used for financial projections should be provided, based on assumptions, for a period of 5 years, for each year from the start. Please provide details against each of the items listed in the next cell. (Amount should be in USD) (a) Amount of business. (b) Size Of Support and administrative staff. (c) Premium income. (d) Investment income. (e) Commissions and other sales related expenses. (f) Expenses of adm....
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....es: 9 Voting Rights of each class of Shareholders: 10 Details of shareholders 11 Name, Address and contact details of the person responsible for the affairs of the proposed IIO Provide a certified copy of the board resolution appointing the person responsible for affairs of IIO 12) Promoters: [Please give full name, address, percentage of holding in the paid up capital of the insurer, Occupation, Qualifications and Experience, Number of shares held and Percentage of share capital in the company] Please attach separate sheets if necessary. Details of persons holding more than 1% of the paid up capital of the applicant and promoters are to be given in separate statements. Full Name [first, middle, surname] Date of Birth Address with Telephone Nos., Fax Nos., Email Qualification Experience Present occupation No. of equity (voting rights) shares and percentage of total holding Remarks (1) (2) (3) (4) (5) (6) (7) (8) Mr./Ms.  ....
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....nts of accounts of the company or body corporate for the last 5 years are to be given. If there are more than one investor, the information may kindly be furnished in such a manner as to indicate clearly the inter-relationship, if any, of parties. If an investor is a nominee of another, details of the principal Investor in the above areas are to be given. Adequate care may be taken to furnish full and complete information truthfully. Any misrepresentation found later will lead to disqualification of the applicant, its promoters and others connected thereto. If the total required Capital has not yet been issued, please provide information on the expected subscription to shares and whether the potential shareholders have given any commitment or assurance to subscribe to the capital. In case an Indian investor is having shareholding in any other insurers, separate detail of the same need to be provided. 14 Applicant: This section should set out the background information. Following information should be included: &n....
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.... If the foreign investor is a company or a body corporate registered in India or in a foreign country, give the name of the company or body corporate in column (1), furnish the date of registration in column (2), mention the areas of operation of the company in col. (5), leaving the columns 4 and 6 blank. The particulars of persons nominated by such foreign investors in the above pro forma; and particulars indicating the countries of operation, nature of business enclosing statements of accounts of the company or body corporate for the last 5 years should also be provided. 16 The Applicant Company: This section should provide the key aspects of the Company. This will cover the following: 16(a) Name of the applicant Company: 16(b) Date of Registration [DD/MM/YYYY] (As per Companies Act, 2013) 16(c) Registration Number 16(d) Registered Office Address 16(e) Head Office Address 16(f) Addre....
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....sp; 18(j) Experience (covering preceding 5 years) 18(k) (a) Details of previous employment (in the last 5 years) (b) If previous employer was regulated by a regulatory body, then: i. Name of the Previous Employer: ii. Nature of Employer's business: iii. Name of the Regulatory body supervising the Employer: iv. Last Designation (including duties & responsibilities. v. Date of Appointment: vi. Date of Resignation: 18(l) Details of other business interests of the Key Management Person during the preceding 5 years in the form of holding equity shares in excess of 2% or Directorships in any other entity 18(m) Relationship of KMP with the Insurer and related parties of insurer, if any: (a) Details of any shareholdings or voting powers in excess of 2% in the Insurer and related parties of insurer: (b) Details of any Business relationships with the Insurer or related parties of insurer: (c) Details of any Business relationships between the Directors' and....
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....agement Person is on deputation / secondment from any other organization? If yes, (a) furnish the full particulars of the Parent Organization: (b) whether any remuneration etc., is paid by the Parent Organization, if so complete details of the remuneration: 18(w) Whether the Key Management Person is into the full time / part time employment of any group company / associated company or the promoting partner of the insurer? In the Remarks column, please mention whether any director or key management person is an agent, broker, intermediary, director or employee of any other insurance company (or Re-insurer) in India or in any foreign country or director of any other company in India or in any foreign country, 19) External Auditors*:(Proposed) Full Name [first, middle, surname] Date of Birth Address with Telephone Nos., Fax Nos., Email Date of Appointment Experience in auditing insurance companies Period of appointment Remarks (1) (2) (3) (4) (5) (6) (7) &....
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....ding the date of application Section B: IIO Business Strategy 27 Types of Insurance or Reinsurance arrangements to be offered, as the case may be The Applicant may give detail of the types of insurance or reinsurance arrangements that it will offer to the Indian and other markets. Annexure - 28 Underwriting This section should describe the approach used for underwriting of proposals, etc. Please also state the nature of support to be provided in underwriting and in training of underwriters and upgradation of skills of the local persons by the head office. Annexure - 29 Recruitment and Training Different areas of the company require personnel with different skill sets. Some of the special technical skills would require special focus. The company may submit a detailed write-up on its plans to impart technical skills and knowledge locally. Annexure - 30 Internal Controls The company will need to establish a set of procedures and norms for various activities. The manner in which these will be monitored should be described. Annexure - 31 Expenses of Administration The ....
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....Company and a cover-holder under which the Service Company authorises the cover-holder to enter into a contract of insurance on behalf of the members of a syndicate for whom the Service Company acts as an agent; (c) "Chain of Security", in relation to a member of Lloyd's, means the member's premiums trust fund, funds at Lloyd's as defined in paragraph 17 of the Lloyd's Membership Byelaw (No. 5 of 2005), other personal wealth of the member and the New Central Fund; (d) "Council of Lloyd's" means the Council of Lloyd's established by the Lloyd's Act 1982 of the United Kingdom; (e) "Cover-holder", in relation to a Service Company, means a person authorised by the Service Company under a binding authority to enter into a contract of insurance on behalf of the members of a syndicate - (i) for whom the Service Company acts as an agent; and (ii) who have authorised the Service Company to enter into such binding authority with the person; (f) "Principal officer", in relation to the administrator or a Service Company, means any person, by whatever name described, (i) who - a) is in the direct employment of the administr....
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....rough a Service Company; (3) the member authorises Service Company acting on behalf of it for the purposes of these Regulations to accept service of notices and legal processes in respect of or connected to the carrying on of insurance business in the IFSC, including any notice or direction of the Authority to the member; and (4) Lloyd's has given an undertaking to the Authority that the holder of any insurance policy issued by the member under these Regulations shall have recourse to the Chain of Security, in accordance with and subject to the terms of the relevant Lloyd's trust deeds and Lloyd's byelaws, conditions and requirements governing the trust deeds, to the same extent as the holder of a general business policy issued by the same member of Lloyd's in London. 5. Members of Lloyd's: (1) A member of Lloyd's who wish to transact insurance business in an IFSC under these Regulations shall apply for registration with the administrator; (2) An application for registration under sub-regulation (1) shall be in such form and contain such particulars as the administrator may determine; (3) the administrator shall not register the Appli....
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....ubmitted by service company to Lloyd's IFSC: (1) The service company shall submit the Lloyd's Service Company Coverholder Undertaking through which the Service Company agrees to comply with all relevant rules and requirements of Lloyd's and the local legal, fiscal, taxation and regulatory authorities; (2) The service company shall also submit the Lloyd's Coverholder Decision Paper which provides detailed information on the proposed Service Company, including: (a) the level of underwriting and claims authority granted to the Service Company, (b) the business strategy for the Service Company, (c) details relating to principal staff operating in the Service Company, (d) financial information, (e) professional indemnity details, (f) classes of business to be underwritten by the Service Company, (g) the approach the Service Company will take to ensure compliance with registration requirements (h) other requirements as specified by Lloyd's subject to approval of the Authority. (3) Subsequent to submitting the decision paper, the service company shall perform Lloyd's Service Company Self- As....
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.... in an IFSC under these Regulations. 10. Cancellation of registration of Service Company: (1) The Authority may, on any of the grounds set out in sub-regulation (2) direct the administrator to cancel the registration of any Service Company; (2) The grounds referred to in sub-regulation (1) are - (a) that the Service Company has not commenced business within 12 months after being registered under regulation 7 of second schedule; (b) that the Service Company has ceased to act as an agent in an IFSC for any member of Lloyd's; (c) that it appears to the Authority that the Service Company has failed to satisfy an obligation to which it is subject to by virtue of these Regulations; (d) that the Service Company is carrying on its business in a manner likely to be detrimental to the interest of the policy holders or insurance market ; (e) that the Service Company has contravened any of the provisions of the Insurance Act, 1938, any of the regulations made thereunder or any direction given by the Authority under the Act or the regulations made thereunder; (f) that any of the officers of the Service Company holding a ....
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....uirements of relevant foreign insurer or foreign re-insurer for acting on its behalf from an IFSC and also compliance with the local legal, fiscal, taxation and regulatory authorities; (3) The MGA shall also submit certified copy of 'binging agreement' which provides detailed information on the proposed MGA, including but not limited to the following: (a) the level of underwriting and claims authority granted to the MGA, (b) the business strategy for the MGA, (c) details relating to principal staff operating in the MGA, (d) financial information, (e) professional indemnity details, (f) classes of business to be underwritten by the MGA, (g) the approach the MGA will take to ensure compliance with registration requirements (h) other requirements as may specified by relevant foreign insurer or foreign re-insurer. (4) The MGA under the 'binding agreement' shall be responsible for the following - (a) Binding insurances and amendments thereto on behalf of foreign insurer or foreign reinsurer; (b) Acting on behalf of foreign insurer or foreign re-insurer for the purpose of receiving....