IRDAI to issue regulations to govern Lloyd's syndicates

Chennai, March 13 (IANS) India's insurance regulator will frame guidelines for syndicates of Britain's Lloyd's to operate in the country, a senior official said Friday.

He also said the Insurance Regulatory and Development Authority of India (IRDAI) would come out with revised regulations governing the non-life and health insurance sectors in three months following the passage of the insurance bill by the parliament on Thursday.

"The basic philosophy of protecting the policyholder's interest would continue to permeate in the proposed regulations," M.Ramaprasad, member (Non-Life), Insurance Regulatory and Development Authority of India (IRDAI) told IANS on Friday.

According to him, being a member of Lloyd's syndicate in Brittain will not be the qualifying criteria to start operations here.

"We will have separate regulations governing the insurance syndicates of Lloyd's and those who qualify under the norms would be allowed to operate. The norms would also take care of the policyholder's interests relating to claims settlement," Ramaprasad said.

Lloyd's is not an insurance brand but a marketplace where syndicates come together to underwrite a risk.

The Lloyd's market is home to 57 managing agents and 93 syndicates underwriting risks.

"We will first satisfy ourselves the comfort levels of syndicates before allowing them," he said.

Ramaprasad said IRDAI will also have to come out with regulations for allowing branches of foreign reinsurers to transact business in India.

On the health insurance sector, the earlier regulations would be studied again and if changes are needed it would be made, he remarked.