“Insurance Regulatory and Development Authority of India (Lloyd’s India) Regulations, 2016” sets forth the guidelines and requirements for Lloyd’s to operate in India, particularly focusing on the reinsurance business. Here’s a detailed summary of the regulation:
Chapter I: General Provisions
Title and Commencement: Specifies the title and the commencement date of the regulations.
Definitions: Clarifies key terms such as “Act,” “Applicant,” “Authority,” “Indian reinsurer,” “Insurance Brokers placing risks with Lloyd’s India,” “Lloyd’s India,” “Managing Agent,” “Members of Lloyd’s India,” “Net Owned Fund (NOF),” “Service Companies of Lloyd’s India,” and “Syndicates of Lloyd’s India.”
Chapter II: Constituents of Lloyd’s India
Details the structural elements comprising Lloyd’s India, including members, syndicates, and service companies.
Chapter III: Registration of Lloyd’s India
Registration Process: Describes the application process for Lloyd’s India to engage in reinsurance business, including eligibility criteria, required documentation, and the Authority’s process for evaluating applications.
Chapter IV: Members of Lloyd’s India
Outlines the obligations and operational guidelines for members participating in Lloyd’s India.
Chapter V: Service Companies of Lloyd’s India
– Registration and Operations: Specifies the norms for establishing service companies within Lloyd’s India, including capital requirements, responsibilities, and the registration process.
Chapter VI: Syndicates Participating in Lloyd’s India
– Details the registration and operation of syndicates under Lloyd’s India, including capital requirements and responsibilities.
Chapter VII: Insurance Brokers Placing Risks with Lloyd’s India
– Describes the norms and requirements for insurance brokers who wish to place risks with Lloyd’s India, aligning their operations with the relevant IRDA regulations.
Chapter VIII: Manner and Payment of Fees
– Fees: Sets out the fee structure for annual operations, including the process for paying, the consequences of late payments, and fee amounts based on reinsurance business volumes.
Chapter IX: Procedure for Action in Case of Default
– Penalties and Procedures: Details the circumstances and procedures for suspension or cancellation of registration due to non-compliance or operational misconduct.
Chapter X: Operations of Lloyd’s India
– Operational Requirements: Specifies the operational and financial conduct requirements for Lloyd’s India, focusing on solvency margins, investments, and geographical business scope.
Chapter XI: Appendices and Forms
– Provides various forms and annexes required for the application, registration, and operational processes.
These regulations ensure that Lloyd’s India operates under strict compliance with Indian regulatory standards, maintaining a structured approach to reinsurance business while ensuring the security and proper management of reinsurance operations within India
