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IRDAI Approves Amendments Regarding Insurance Firms

Published on November 29, 2022
Current Context: The Insurance Regulatory and Development Authority of India (IRDAI) approved the amendments to rules registering insurance companies and investing in them.
IRDAI Approves Amendments Regarding Insurance Firms
  • 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

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