IRDA says no to 'Pvt Ltd' insurance companies

Venkatachari Jagannathan
07 January 2008

Chennai: To ensure better corporate governance and transparency in the insurance sector, the Insurance Regulatory and Development Authority (IRDA) has decided not to issue licences to companies registered as private limited insurance companies under the Indian Companies Act 1956.

According to an IRDA official, prospective entrants in the insurance sector have been asked to register their companies as public limited companies instead. 

"Existing private limited insurers have been asked to become public limited," he said.

Accordingly Aviva Life Insurance Company India Pvt Ltd changed its incorporation status in November 2007 and is now Aviva Life Insurance Company India Ltd.

"Becoming public limited does not mean that the company is planning any public issue. It is mainly to comply with the regulator's directive," said an Aviva spokesperson.

When contacted the spokesperson of the Bangalore-based Metlife India Insurance Co Pvt Ltd said the company was awaiting the Registrar of Companies' sanction for the change in its incorporated status.