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CS Professional · IFSCA - Regulations, Listing and Compliances · Insurance and Reinsurance

Himalaya Assurance Ltd, an Indian insurer, wants to write direct life and general insurance business for customers located outside India from its branch in GIFT IFSC. Under the IFSCA (Registration of Insurance Business) Regulations, 2021, what must it do first?

The insurer must first obtain registration from IFSCA as an IFSC Insurance Office before starting business in GIFT IFSC. IFSCA is the regulator for the IFSC, so IRDAI registration alone is not enough, and business cannot begin before registration.

  1. AObtain registration from IFSCA as an IFSC Insurance Office (IIO) before commencing businessCorrect
  2. BObtain IRDAI approval alone, since it is an IRDAI-registered insurer
  3. CBegin business and apply for registration within one year
  4. DRegister with the Registrar of Companies in the IFSC

Explanation

The Regulations require an entity to be registered by IFSCA before carrying on insurance business in the IFSC. An Indian insurer setting up a branch there is treated as an IFSC Insurance Office. IRDAI registration alone does not authorise IFSC business, and post-facto registration is not allowed.

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