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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.


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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