Section 35 of the Insurance Act, 1938 lays down the framework for amalgamation and transfer of life insurance companies. However, a similar provision is not available in case of non-life insurance companies. This anomaly is proposed to be rectified in the Insurance Amendment Bill, 2008.
Against the background of the fact that there exists a statutory/regulatory gap with respect to the non-life insurance companies pending the amendment, the Authority is presently in the process of laying down the framework for amalgamation of non-life insurance companies.
The Exposure Draft lays down the framework for amalgamation of non-life insurance companies. Comments are invited on the Exposure draft at the email id mamta@irda.gov.in latest by 22nd February, 2011. Based on the comments received the Authority would finalize the framework for amalgamation of non-life insurance companies.
The Exposure Draft can be accessed at the following link
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(J. Hari Narayan)
Chairman
