IRDAI identifies LIC, GIC and New India Assurance as D-SIIs

Published on September 28, 2020
Current Context: The Insurance Regulatory Development Authority of India (IRDAI) has identified LIC (Life Insurance Corporation of India), GIC (General Insurance Corporation of
IRDAI identifies LIC, GIC and New India Assurance as D-SIIs

India) and New India Assurance as D-SIIs (Domestic-Systematically Important Insurers).
  • IRDAI has also asked these three insurance companies to increase the level of corporate governance, by identifying relevant risks and to have risk free management culture.
  • They are also asked to increase regulatory supervision by IRDAI. 
  • The mark of D-SIIs refers to insurers of such size, market importance level and global inter-connections whose failure or distress can result in a significant dislocation in the country’s finance system. Therefore, to fulfil the mark of D-SIIs, these insurers have to function their operation without any interruptions in insurance services to the economy of the country.
  • The D-SIIs are perceived as insurers which are ‘too big or too important to fail’ (TBTF). 
  • The parameters defined by IRDAI to identify such insurers, monitor them, identify their methodology and supervision of their mark of D-SIIs are: Size of operations with respect to total revenue, including premium underwritten and the value of assets and global activities with more than one jurisdiction. 
  • Static Part: 
    • HQ of IRDAI: Hyderabad
    • Chairman of IDRAI: Subhash C Khuntia
    • HQ of LIC, GIC, New India Assurance: Mumbai

Question: 

Q.1 IRDAI has identified which of the following insurance company/companies as D-SIIs (Domestic-Systematically Important Insurers)?
a. LIC
b. United India Insurance Company Ltd
c. New India Assurance Company Ltd 
d. Both (a) and (c)

Can I help you?

ramandeep singh

Hey I am Ramandeep Singh. I am determined to help students prepaing for RBI, SEBI, NABARD and IBPS exams. Do you want me to help you ?

Join my class here
    Follow me:
Close Menu
Close Menu