The number of applications for a non-life insurance licence being vetted by the insurance regulator, the IRDAI, is at least 19.
Narayana Health Insurance, Paytm General Insurance and Prudential Health Insurance, among others, are at various stages of the approval process, a person familiar with the matter told Business Standard.
Of the 19 applicants, only Narayana Health Insurance has reached the R2 stage of the application. Twelve of them were at the R1 stage as of 19 December 2023. The remaining six were in the ‘No Objection Certificate’ (NOC) stage of the process.
A No Objection Certificate (NOC) is issued for the sole purpose of enabling the applicant to apply for incorporation of the proposed company with the word “Insurance” in its name with the Registrar of Companies.
According to the regulator, for a Certificate of Registration as an Indian insurance company, an applicant has to undergo three stages. R1 is the first stage where the application is examined by the nodal departments. In the second stage – R2, the shareholding pattern of the company, the products sold, and the professional experience of the management, among others, are scrutinised. During these stages, IRDAI can ask queries/seek clarification of the documents submitted and advise them to ensure compliance accordingly. In R3, a request is made for a Certificate of Registration.
The IRDAI is committed to its vision of ‘Insurance for All by 2047’, and accordingly, more players will be required to increase penetration. Currently, the penetration of the general insurance industry stands at 1%.
