Clarification on Circular on Appointment or Continuation of Common Director

IRDAI vide circular Ref: No: IRDAI/F&I/CIR/MISC/191/9/2022 has issued a ‘Clarification on Circular on Appointment or Continuation of Common Director’ dated, September 13, 2022 (Circular) in continuation its Circular dated September 02, 2022 on “Appointment or Continuation of Common Director(s) u/s 48A of Insurance Act, 1938” .

Highlights of the Circular are as follows:

• The Directors appointed under section 48A of the Insurance Act, 1938 after obtaining due approval of the Authority may continue to hold the directorship till completion of tenure of appointment
• The restriction stipulated under clause 3(b) of the Circular on Appointment or Continuation of Common Director is not applicable on directors already appointed or proposed to be appointed as a nominee of a promoter of the insurer. The aforementioned clause is reiterated below for ready reference

“An individual, already acting or proposed to act as Executive Director/Whole-Time Director on the Board of the Insurer/Agent/Intermediary/Insurance intermediary, shall not be appointed as nominee/ common director”.

Source category: IRDAI

Attachments

• /2022/85_Clarification_on_Circular_on_Appointment_or_Continuation_of_Common_Director.pdf