New Delhi: The Insurance and Regulatory Development Authority of India on Friday permitted UK-based Lloyds to set up business in the country and have floated draft rules and regulations relating to the reinsurance sector.
"Consequent upon promulgation of Insurance Laws (Amendment) Act, 2015, Lloyds UK has been permitted to set up branch office in the country," Insurance regulator IRDAI said in statement.
This necessitates the authority to notify fresh set of regulations for this category of insurers, it said.
Lloyds India being a market shall ensure that the market and the constituents are housed in one location for the conduct of reinsurance business, it said.
The development assumes significance as Prime Minister Narendra Modi is on three-day visit to London.
The regulation will cover both the registration and operations of Lloyds India, it said, adding that Lloyd's UK shall set up Lloyd's India, which will be granted certificate of registration to set up market and associated structures for conduct of reinsurance business in India and outside India.
The constituents of Lloyd's India will be granted recognition by insurance regulator IRDA through a certificate of registration.
There shall be a two-stage process for approval as followed for Branch Office of Foreign Reinsurers, it said.
"One of the important conditions governing approval of Lloyd's India is the commitment given in the letter of comfort by Lloyd's UK and access to the Central Funds of Lloyd's UK with respect to Lloyd's India," it said.
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