- The new amendments were approved by the IRDAI to simplify rules to set up insurance firms.
- To ensure flexibility, private equity (PE) funds will now be able to directly put in money in insurance companies, and investment through special purpose vehicles (SPVs) was made optional.
- This will in turn promote ease of doing business as the process of establishing an insurance firm will be smooth and hassle-free.
- The new rules aim to enable policyholders, merchants, and insurers to provide “insurance for everyone” by 2047.
- According to the new rules, a single investor taking 25% (earlier 10%) in an insurance company will be classified as an “investor” and any investment more than that will make them a “promoter”.
- IRDAI is a regulatory body that was established in 1999 with its headquarters in Hyderabad. The current Chairperson of the company is Debasish Panda.
Question:
Q.1 According to the recent amendments approved by the IRDAI, a single investor taking _____% in an insurance company will be classified as an “investor”.a. 25
b. 30
c. 35
d. 40
