TMI BlogReview of FDI Policy on Insurance Sector - Amendment 'Consolidated FDI Policy Circular 2014'X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry route 6.2.17.7 Insurance 6.2.17.7.1 ( i ) Insurance Company ( ii ) Insurance Brokers ( iii ) Third party Administrators ( iv ) Surveyors and Loss Assessors 26% (FDI+FII/FPI+NRI) Automatic 6.2.17.7.2 Other conditions (1) FDI in the Insurance sector, as prescribed in the Insurance Act, 1938, is allowed under the automatic route. (2) This will be subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Authority under regulation 11, who for remuneration arranges insurance contracts with insurance companies and/or re-insurance companies on behalf of his clients. (6) As per IRDA (TPA-Health Services) Regulations, 2001, TPA means a Third Party Administrator who, for the time being, is licensed by the Authority, and is engaged, for a fee or remuneration, by whatever name called as may be specified in the agreement with an insurance company, for the provision of health services. (7) Surveyors and Loss Assessors will be governed by the IRDA Insurance Surveyors an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2.17.7.2 Other conditions ( a ) No Indian insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine per cent of the paid up equity capital of such Indian insurance company. ( b ) Foreign direct investment proposals which take the total foreign investment in the Indian insurance company above 26 per cent and upto the cap of 49 per cent shall be under Government route. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance Brokers, Third Party Administrators, Surveyors and Loss Assessors and Other Insurance Intermediaries appointed under the provisions of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999): ( h ) Provided that where an entity like a bank, whose primary business is outside the insurance area, is allowed by the Insurance Regulatory and Development Authority of India to function as an insurance intermediary, the foreign equity investment caps applicable in that sector shall continue to apply, subject to the condition that the revenues of such entities from their primary (i.e. non-insurance related) business must remain above 50 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consultation with the Insurance Regulatory and Development Authority (IRDA) in order to ensure that the 26 per cent limit of foreign shareholding applicable for the insurance sector is not being breached. 3.2 Revised Position Applications for foreign direct investment in private banks having joint venture/subsidiary in insurance sector may be addressed to the Reserve Bank of India (RBI) for consideration in consultation with the Insurance Regulatory and Development Authority of India (IRDAI) in order to ensure that the 49 per cent limit of foreign shareholding applicable for the insurance sector is not being breached. 4.0 The above decision will take immediate effect. (Atul Chaturvedi) Joint Secretary to the Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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