CEOs of life companies can join as directors on boards of insurance companies overseas, as Insurance Regulatory Development Authority (IRDA) has permitted them for the same. However, IRDA has made it clear that a CEO of a life insurance firm will be prohibited from being a director on the board of any other Indian insurance company, bank or investment company, in its final guidelines on governance.
However, There is no such restriction for CEOs of non-life companies. The insurance regulator has also advised insurers to allow employees to raise concerns internally on possible irregularities in financial reporting and governance weaknesses.
All insurers have to mandatorily set-up a policyholder protection committee among other things, that will monitor miss-selling of insurance products and supervise the conduct of market intermediaries.
The objective behind the move is to ensure that investments are done in order to enable the firm to meet its cash flow and capital requirements at a future date.
However, There is no such restriction for CEOs of non-life companies. The insurance regulator has also advised insurers to allow employees to raise concerns internally on possible irregularities in financial reporting and governance weaknesses.
All insurers have to mandatorily set-up a policyholder protection committee among other things, that will monitor miss-selling of insurance products and supervise the conduct of market intermediaries.
The objective behind the move is to ensure that investments are done in order to enable the firm to meet its cash flow and capital requirements at a future date.
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