IRDAI has released comprehensive corporate governance guidelines, including a cap on salary of CEOS and policy on whistle blowers. The revised guidelines, which came against the backdrop of changes in the Companies Act, 2013, combine the conditions regarding the corporate governance practices, appointment of MD/CEO/Whole Time Director and other Key Management Positions as well as the appointment of statutory auditors of insurers.
Insurers are well advised to put in place a ‘whistle blower’ policy, where-by mechanisms exist for employees to raise concerns internally about possible irregularities, governance weaknesses, financial reporting issues or other such matters, it said.
