Exposure Draft on Amalgamation of Non Life Insurance Co.

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 [email protected] 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

Sd/-
(J. Hari Narayan)
Chairman