Irda lists norms for closure of liaison insurance offices

Chennai, Jul 19 The Insurance Regulatory and Development Authority (Irda) has announced a set of norms for closure of liaison offices established in India by insurance companies registered outside India. Irda’s framework for approval of opening a liaison office of foreign insurance companies registered outside India is already in place.

As per the norms, the requests for closure of liaison office shall be submitted to IRDA in form Irda FIC - 2 attached as annexure ‘1’. The application for closure of liaison offices shall be submitted along with the documents including certified copy of Irda’s permission for establishing the branch/liaison office in India, a chartered accountant’s certificate indicating the manner in which the remittable amount has been arrived at and supported by a statement of assets and liabilities of the applicant indicating the manner of disposal of assets, confirming that all liabilities in India including arrears of gratuity and other benefits to employees etc of the office have been either fully met or adequately provided for; confirming that no proceeds accruing from sources outside India has remained unrepatriated to India.

As per the guidelines, the insurance companies should also enclose the no-objection/tax clearance certificate from Income Tax authority for the remittance or an undertaking from the applicant and a certificate from the chartered accountant regarding undertaking to be obtained from a person making remittance of foreign exchange as advised by RBI from time to time and confirmation from the parent entity that no legal proceedings in any court in India are pending against the liaison office and there is no legal impediment to the closure/remittance.

Source: Financial Express