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

Sundaram General Insurance, an Indian insurer, wants to write insurance business from its GIFT City branch for clients outside India. Which statement best describes the regulatory position of this branch?

The GIFT City branch needs registration with IFSCA as an IFSC Insurance Office and is regulated under IFSCA's insurance framework. An existing Indian insurer can set up such an office as a branch, but it does not escape IFSCA registration or supervision.

  1. AIt must obtain separate approvals from IRDAI for every policy issued from the IFSC
  2. BIt is regulated by IFSCA as an IFSC Insurance Office under IFSCA's insurance regulations, not under the domestic IRDAI frameworkCorrect
  3. CIt is exempt from any registration since it is part of an existing Indian insurer
  4. DIt must be regulated by SEBI because GIFT City is a securities hub

Explanation

Insurers and reinsurers operate in the IFSC by registering with IFSCA as an IFSC Insurance Office, which can be a branch of an existing insurer. Registration by IFSCA is required even for an existing Indian insurer. Option 3 is wrong because being an existing insurer does not remove the need for IFSCA registration.

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