(a) whether the Government is contemplating to introduce new guidelines for mergers and
acquisitions among non-life insurance companies in the country;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken/being taken by the Government to protect the interests of policy
holders?
Minister of State in the Ministry of Finance (Shri Namo Narain Meena)
(a)to(c): Yes, Sir. The Insurance Act. 1938 provides for the amalgamation and transfer of
life insurance business. The Act does not contain any specific provision for the amalgamation
of non-life insurance companies. The Insurance Regulatory and Development Authority (IRDA)
has informed that they are in the process of formulating the guidelines for mergers and
acquisitions of non-life insurance companies. The proposed guidelines would address issues
relating to protection of the interests of policyholders, which would inter-alia cover payment
of claims by the amalgamated entity, as and when they arise apart from the policy servicing
aspects etc.