FCS Deepak Pratap Singh
Quick Summary
As you are aware that the Insurance Act,1938 is notified on 26th February,1938 and main objective was to consolidate and amend law relating to business of Insurance. Since there were many companies engaged in the business of insurance in pre-independence period and there was no legislature to contro
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FAQ :
The main objective of the Insurance Act, 1938, was to consolidate and amend the law relating to the business of insurance, providing comprehensive provisions for effective control over the activities of insurers and protecting the interests of the insurance public.
The Insurance Laws (Amendment) Act 2015 increased the ceiling for foreign investment in insurance companies from 26% to 49% of the paid-up equity capital.
A new requirement was imposed by the 2015 amendment stating that insurance joint ventures must be Indian-controlled, even with the increased foreign ownership ceiling.
The amendment proposes to regulate health insurance as a separate class of insurance, distinct from general insurance business, to give it priority through a more focused regulatory regime.
General insurance companies must comply with Schedule B of the IRDA (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations, 2002, which includes preparing a balance sheet, profit and loss account, receipts and payments account, and a revenue account.
Insurers' financial statements must conform to applicable Accounting Standards (AS) from the Companies Act, 1956, with specific modifications, such as preparing Cash Flow Statements only by the Direct Method and not applying AS 13 (Accounting for Investments).
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