IRDA to issue IPO guidelines in 2 weeks
The Insurance Regulatory and Development Authority is set to issue final guidelines for initial public offerings (IPOs) of general insurance companies in the next couple of weeks. HT reports.india Updated: Oct 04, 2012 00:05 IST
The Insurance Regulatory and Development Authority (IRDA) is set to issue final guidelines for initial public offerings (IPOs) of general insurance companies in the next couple of weeks.
“The insurance advisory committee had a look at the recommendations. It should be out within the next two weeks,” J Hari Narayan, chairman, IRDA, said on the sidelines of an event organised by the Confederation of Indian Industry (CII) here.
The draft guidelines on the same, issued last month, stated that only those general insurance companies which have been in operation for at least 10 years would be allowed to visit the capital market with prior approval from the sector regulator.
The insurance regulator also said that the guidelines would be issued to prevent insurance companies from arbitrarily increasing renewal premiums on health policies under which benefits had been claimed previously.
“We have seen that if a party makes a claim in a given year, it is likely that the insurance company may increase that party’s premium because a claim has been made,” Hari Narayan said.