REGISTRATION OF

INSURANCE
COMPANIES
PRESENTED BY FARAZ KHAN
ROLL NO. 20
REGISTRATION OF INSURANCE COMPANIES

• The registration of insurance company and issuance of insurance company license is

regulated under the Insurance Regulatory and Development Authority of India(IRDAI).
• To obtain the certificate of Registration as an Indian Insurance company an applicant has
to undergo three linear stages :-
• R1 Stage
• R2 Stage
• R3 Stage
 R1 STAGE

The application is examined based on certain requirements as stated in Sub Regulation 7 of

the IRDAI Regulations, 2016 which is as under:
• All submissions in R-1 are examined by respective nodal Departments.
• During the process, IRDAI raises queries, seeks clarifications/documents if required. The
application and submissions made by the applicant are examined from all perspectives
including the financial, investment, corporate governance, solvency, actuarial etc. by
respective Departments. On receipt of satisfactory notes from various departments, the
R1 application is taken to the Board for approval.
R1 STAGE CONTINUED

• The Authority on being satisfied with the information submitted and on verification that-
• The requisition in Form IRDAI/R1 is complete in all respects and is accompanied by all documents
required therein; and
• The applicant shall carry on all functions in respect of the insurance business including
management of investments within India as may be specified; may accept the requisition and
issue the application for registration to the applicant.
• Once the Board approves, R1 clearance letter is issued to the applicant along with conditions if any,
noted and advise them to make their compliance and file R2 application accordingly.
 R2 STAGE

• After R1 the candidate can apply for the R2 application.

• If this application is made for the business of Life Insurance, General Insurance, or
Health Insurance, there must be documentary evidence proving that the paid-up capital of
the business is at least Rs.100 crore.
• If the application is made for the business of Reinsurance, there must be documentary
evidence proving that the paid-up capital of the business is at least Rs.200 crore.
R2 STAGE CONTINUED

• Documents required in R2 Stage are :-

• The affidavit provided by the Indian promoters and foreign investors stating that the paid-up capital
available is adequate even after the exclusion of the preliminary expenses.
• Certified copies of the prospectus.
• Documentary evidence showing proof of payment of a non-refundable fee of Rs. 5 lakh.
• Document certifying the compliance of FDI Rules, ensuring that the ceiling on capital held by
foreign investments stands at 26% and is being adhered to.
• Practicing Chartered Accountant or Company Secretary certification as required.
 R3 STAGE

• After meeting the requirements and conditions in R2 Stage, the Applicant can proceed with the R3 stage.
• In this stage IRDAI examines R-3 request along with the following that-
• The applicant is eligible, and in its opinion, is likely to meet effectively its obligations imposed under the Act.

• The financial condition of the promoters, foreign investors and the general character of the management of the applicant are
sound.
• The volume of business likely to be available to, and the capital structure and earning prospects of the applicant will be
adequate.
• The interests of the general public will be served if the certificate is granted to the applicant in respect of the class of
insurance business specified in the application.

• IRDAI examines if the submissions at R-3 stage are satisfactory and are in order and after being satisfied, issues
the Certificate of Registration.
THANK YOU