An organization chartered to operate as an insurer. Any corporation primarily engaged in the business of furnishing insurance protection to the public.
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Every Insurer seeking to carry out the business of insurance India is required to obtain a certificate of registration from the IRDA. (a) The applicant need to be a company registered under the provisions of the Indian Companies Act, 1956. Consequently any person intending to carry on insurance business in India would need to set up separate entity in India. (b) The aggregate equity participation of a foreign company (either by itself or through its subsidiary company or its nominees) in the applicant company cannot exceed twenty six percent of the paid up capital of the insurance company. (c) The applicant can carry on any one of the life insurance business, general insurance business or reinsurance business. Separate companies would be needed if the intent were to conduct more than one business. The name of the applicant needs to contain the words “insurance company” or “assurance company.” (d) A minimum paid up equity capital of rupees one billion in case of an applicant which seeks to carry on the business of life insurance or general insurance; two billion in case of a person carrying on exclusively the business of reinsurance. A promoter is not permitted to hold at any time more than 26 per cent of the paid up capital.