IndiaInsurance
10th February 2011, 02:21 AM
Policyholders’ will have the right to inspect merger and acquisition proposals for general insurance companies after they receive an in-principal approval from the regulator. Merging entities will also have to cite a reason for the acquisition or merger proposal.
After a company submits a proposal for a merger or an acquisition, the Insurance Regulatory & Development Authority (Irda) may ask insurers to send a copy of the application to all its policyholders. Customers of non-life companies range from large corporates who have bought industrial covers to an illiterate driver in rural India, who buys a motor cover.
Irda has prepared a draft exposure for schemes of arrangement and transfers of non-life insurance business and intends to incorporate it in the Insurance Amendment Bill of 2008. This is because there are no guidelines for mergers and acquisition of non-life companies under the present set of rules and Acts.
More... (http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/policyholders-can-now-inspect-insurers-ma-proposals/articleshow/7464246.cms)
After a company submits a proposal for a merger or an acquisition, the Insurance Regulatory & Development Authority (Irda) may ask insurers to send a copy of the application to all its policyholders. Customers of non-life companies range from large corporates who have bought industrial covers to an illiterate driver in rural India, who buys a motor cover.
Irda has prepared a draft exposure for schemes of arrangement and transfers of non-life insurance business and intends to incorporate it in the Insurance Amendment Bill of 2008. This is because there are no guidelines for mergers and acquisition of non-life companies under the present set of rules and Acts.
More... (http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/policyholders-can-now-inspect-insurers-ma-proposals/articleshow/7464246.cms)