TagInsurance

Representations & Warranties Insurance in Mergers & Acquisitions

[Ajay Krishna is a 4th-year B.A. LL.B. (Hons.) Student at The National University of Advanced Legal Studies, Kochi] Mergers and acquisitions (M&A) transactions have been steadily growing in India and some of the most highly negotiated provisions in these transactions are those of indemnities in case of breach of representations and warranties. Globally there has been a rapid growth in the use...

Supreme Court on Conflict in Arbitration Agreement of Insurance Policy

[Nikhil Singh is a 2nd Year B.A., LL.B. (Hons.) Student at The West Bengal National University of Juridical Sciences, Kolkata] Introduction Recently, a three-judge bench of the Supreme Court in the case of Oriental Insurance Co Ltd v. Narbheram Power and Steel Pvt Ltd analysed a contentious dispute redressal clause commonly found in insurance agreements. The Court, while finding in favor of...

Stewardship Code for Insurance Companies

Historically, the passivity of institutional investors in India has led to less than significant monitoring of managements and controlling shareholders of companies. However, as I had noted in an earlier paper, the Indian markets began witnessing greater levels of shareholder activism in more recent years. Among the regulatory efforts that have engendered activism, one relates to a 2010 circular...

Assignability of Life Insurance Policies

The controversial practice of companies taking out “dead peasants” insurance on the life of their employees was depicted by Michael Moore in his film “Capitalism: A Love Story”. In this, companies took insurance policies on the lives of their employees and also paid the premium on them. In case of the death of their employees, the claims would be paid out to the employer, and the family of the...

Insurance Companies: IRDA Seeks Control in Indian Hands

[The following post is contributed by Vinod Kothari of Vinod Kothari & Co. He may be contacted at [email protected]] The issue of ownership and control of insurance companies in India has been in a state of flux since early this year. While the intent of the Government was clear – to permit FDI up to 49% in the insurance sector – the Rules framed by the Ministry of Finance in February...

Lack of Regulatory Clarity on Foreign Investment in the Insurance Sector

[The following guest post is contributed by Nivedita Shankar, Senior Associate, Corporate Law Division, Vinod Kothari & Company. The author may be reached at [email protected]]. An increase in the threshold limit for foreign investment in insurance companies has been hailed as a major thrust for the insurance sector, which has seen very few players. In this background, the Indian...

Trading on Insurance Policies in the Secondary Market

[The following guest post is contributed by Ammu Charles, who is an Associate at K Ramakumar and Associates] The Insurance Laws (Amendment) Bill, 2015 was passed by Parliament on March 12, 2015, replacing the ordinance promulgated last year. The Bill was first introduced on December 22, 2008 and seeks to amend the provisions in the Insurance Act, 1938, the General Insurance Business...

DIPP Operationalizes Insurance FDI Reforms

The Government had earlier begun the process of enhancing foreign direct investment (FDI) in the insurance sector by increasing the investment cap from 26% to 49%. Given the political stalemate in the Parliament’s legislative process, the Government had initiated the reforms in December 2014 through the promulgation of the Insurance Laws (Amendment) Ordinance, 2014. Subsequently, the Finance...

IRDA Regulations on Insurance IPOs

Earlier this month, the Insurance Regulatory and Development Authority (IRDA) issued norms for IPOs by life insurance companies. Referred to as the IRDA (Issuance of Capital by Life Insurance Companies) Regulations, 2011, they set out certain preconditions for life insurance IPOs and also specify additional disclosure requirements. The following are some key points: 1. The regulations impose...

The Issue of Limitation in Consumer Complaints

A recent note discusses the decision of the Supreme Court in Kandimalla Raghavaiah v. National Insurance, concluding that it is being misinterpreted, and lays down dangerous precedent for insurance claims. While the concern highlighted by the abovementioned note, that “consumers will continue to find themselves at the receiving end with genuine complaints being thrown out for being time–barred”...

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