FCS Deepak Pratap Singh
Quick Summary
As you are aware that Governance means system by which an entity is directed, controlled and it is prudent method of decision making, fixing accountability, responsibility and doing business for the benefit of public as well as owners of the entity. Governance is a process to run an entity according
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FAQ :
The main objective is to provide a governance structure for insurers that recognises and meets the expectations of all stakeholders, especially policyholders, and ensures the adoption of sound and prudent principles and practices for governance.
These regulations are scheduled to come into force from April 1, 2024.
Every insurer must have a Board comprising competent and qualified individuals. There should be a minimum of three Independent Directors, and the MD/Chief Executive Officer must be a Whole-time Director. The Chairperson's appointment requires prior approval from the Competent Authority.
If the number of Independent Directors falls below the minimum, the vacancy must be filled before the next Board meeting or within three months from the vacancy date, whichever is later, with intimation to the Authority.
Insurers must mandatorily constitute committees such as the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, Risk Management Committee, Policyholder Protection, Grievance Redressal and Claims Monitoring Committee, and Investment Committee. A 'With Profits Committee' is required for insurers transacting participating life insurance business.
Yes, the constitution of the Policyholder Protection, Grievance Redressal and Claims Monitoring Committee (PPGR&CM Committee) is not mandatory for reinsurance companies.
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