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

Meera Insurance Ltd, registered as an IFSC Insurance Office, wants to understand the nature of business it may write. Which statement is correct under the IFSCA (Registration of Insurance Business) Regulations, 2021 framework?

Meera may carry on permitted insurance business, including life, general and health lines, with non-residents and IFSC units, in specified foreign currency. The framework is offshore-oriented, so it is not limited to domestic rupee retail policies for Indian residents, and it is not restricted to acting as a surety.

  1. AIt may write only domestic rupee retail policies for Indian residents
  2. BIt may carry on insurance business with persons resident outside India and with IFSC units as permitted, in foreign currencyCorrect
  3. CIt may not write any life or general insurance business
  4. DIt may only act as a surety to banks

Explanation

IFSC insurance offices serve offshore-oriented business, dealing in specified foreign currency with non-residents and IFSC units, as permitted by IFSCA. They are not confined to domestic rupee retail business or barred from insurance lines.

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