Governance Insurance Legal Alerts RBI

Insurance Law Brief-May 2024

We extend a warm welcome to our esteemed readers as we present our newsletter. In this edition, we shed light on the latest developments in India’s corporate legal sphere for April 2024. Our dedicated team has compiled a range of news and insights, encompassing regulatory advancements to keep you informed. Stay ahead with our carefully curated newsletter, featuring regulatory updates and insights. Sit back, relax with your favorite drink, and embark on a journey through India’s corporate legal landscape.

We would like to bring to our readers our Insurance Law Newsletter, focusing on the regulatory developments in the Indian Insurance Law sphere for the month of May 2024. This has been compiled by our enthusiastic team which ensures that our readers and the wider legal fraternity stay abreast with the law. We encourage you to dive into this newsletter and to keep yourselves up to date with the latest developments in the Indian Insurance Legal Landscape.


  • The Insurance Regulatory and Development Authority of India (IRDAI), vide circular dated May 10, 2024, issued the Master Circular on Rural, Social Sector and Motor Third Party Obligations. This circular stipulates that both life and non-life insurance companies shall mandatorily conduct a minimum percentage of business towards meeting rural, social sector, and motor third-party obligations. The Life Insurance Council, in consultation with the Ministry of Panchayati Raj, shall identify gram panchayats for fulfilling rural sector obligations.

Besides, it also offers clarifications regarding:

  • compliances relating to shares allotted under the Employee Stock Option Plan, or any other similar scheme for employees’ / directors’ benefit;
    • additional requirements to be complied with by an insurer, before submitting application seeking prior approval for transfer of shares;submission of a confirmation along with intimation that the insurer shall be approaching the appropriate financial regulator for listing of equity shares; and
    • compliances to be undertaken by a transferee insurer pursuant to the implementation of a scheme of amalgamation and transfer under the provisions of the Insurance Act, 1938, and the Companies Act, 2013.

  • prescription of key elements to be included in the board policy on commission structures for intermediaries;
    • details needed to be specified in an insurer’s business plan; and
    • method of computing expenses of management.
  • IRDAI on May 22, 2024, issued the Master Circular on Corporate Governance for Insurers, 2024, which shall be applicable to all insurers, except foreign companies engaged in re-insurance business through a branch established in India. This circular, while effective immediately, grants time to insurers until June 30, 2024, to ensure compliance with its provisions. However, the specific timelines for certain compliances mentioned therein shall remain unchanged. Amongst other things, this Master Circular prohibits both conflicts of interest in key management positions, as well as the holding of both business and control functions / two or more control positions, by a single individual.
  • The IRDAI vide its circular dated May 28, 2024, states that an entity licensed by it, which sends any commercial communication to its existing / prospective customers, shall fulfill the requirements prescribed by the Telecom Regulatory Authority of India on May 22, 2024, vide press release no. 25 of 2024, in connection with the possible approaches and measures to deal with unsolicited commercial communications and frauds through telecom resources.
  • insurers should decide within one hour on the request for cashless authorization;
  • final authorization on discharge from the hospital to be decided within 3 hours from receipt of the request; and
  • no need for policyholders to submit any documents for claim settlement. Instead, the insurers and third-party administrators should collect the required documents from the hospital.

From the Docket:

We trust that this edition of our newsletter has proven to be an enlightening and valuable resource for your professional endeavors. If you have any questions about any of these developments or would like to see something different next month, we warmly encourage you to reach out to us at

We will be back next month with another newsletter. Until then, stay safe, stay healthy, and enjoy!