IRDA issues draft M&A guidelines for non-life insurance cos

Insurance Regulatory and Development Authority (IRDA) has issued merger and acquisition (M&A) guidelines for non-life insurance companies, reports CNBC-TV18.

According to the guidelines companies are required to submit intent letter two months prior to application and also explain the rationale behind the proposed merger. The merger proposal is required to be send to all policyholders. However, approval from Foreign Investment Promotion Board (FIPB), Reserve Bank of India (RBI) and IRDA is mandatory.

IRDA also says that application fee for non-life insurance M&A will be one tenth of the gross written premium. Fee will be in the minimum bracket of Rs 50,000,00 to Rs 5 c