Further, the application is examined based on certain requirements as stated in Sub Regulation 7 of the IRDAI (Registration of Indian Insurance Companies) (Seventh Amendment) Regulations, 2016 which is as under:

1. All submissions in R-1 are examined by respective nodal Departments. The R-1 application also includes the following documents:
   • A certified copy of the Memorandum of Association and Articles of Association, where the applicant is a Company and incorporated under the Companies Act, 2013 (18 of 2013); or
   • A certified copy of the Act of Parliament setting up the statutory body to carry on insurance business;
   • The name, address and the occupation of the directors;
   • A certified copy of the annual report of Indian Promoters and the Foreign Investors for the last five years preceding the year of filing of requisition of registration application;
   • A certified copy of the shareholders’ agreement between Indian Promoters and Foreign Investors of the applicant;
   • Projection of Business for 5 years duly approved by the Board of Directors of the applicant.
   • the general track record of conduct and performance of each of the Indian Promoters and Foreign Investors in the fields of business/profession they are engaged in;
   • the record of conduct and performance of the directors and persons in management of the Indian Promoters, Foreign Investors and the applicant
   • the capital structure of the applicant;
   • the ability to meet the obligation to provide life insurance or general insurance or health insurance to the
   • persons residing in the rural sector, workers in the unorganized sector or informal sector or for economically
   • vulnerable or backward classes of the society and other categories of persons specified by the Authority
   • the ability to meet the obligation to underwrite insurance business in third party risks of motor vehicles as specified by the Authority in respect of general insurance companies;
   • the planned infrastructure of the applicant;
   • the proposed business expansion plan for five succeeding years, including establishment of place of business in rural areas, to effectively carry out the insurance business;
   • and other relevant matters for carrying out the provisions of the Act.
2. During the process, IRDAI raises queries, seeks clarifications/documents if required. The application and submissions made by the applicant are examined from all perspectives including the financial, investment, corporate governance, solvency, actuarial etc. by respective Departments. On receipt of satisfactory notes from various departments, the R1 application is taken to the Board for approval.
3. The Authority on being satisfied with the information submitted and on verification that-
   • the requisition in Form IRDAI/R1 is complete in all respects and is accompanied by all documents required therein; and
   • the applicant shall carry on all functions in respect of the insurance business including management of investments within India as may be specified; may accept the requisition and issue the application for registration to the applicant.
4. Once the Board approves, R1 clearance letter is issued to the applicant along with conditions if any, noted and advise them to make their compliance and file R2 application accordingly.

1. Application for registration R2 is filed by the applicant as prescribed under IRDAI (Registration of Indian Insurance Companies) (Seventh Amendment) Regulations, 2016.
2. The R2 application must include the following-

   Provided that in case of the Indian promoter being Limited Liability Partnership, such affidavit shall be signed by the Designated Partner

   • Evidence of having rupees one hundred crore or more paid up equity share capital, in case the application for grant of certificate is for life insurance business or general insurance business or health Insurance business;
   • Evidence of having rupees two hundred crore or more paid up equity share capital, in case the application for grant of certificate is for re-insurance business;
   • An affidavit by the promoters and foreign investors of the applicant certifying that the requirements of the second proviso to section 6(1) of the Act to the effect that paid-up equity capital is adequate after excluding any preliminary expenses of the company have been satisfied;
   • A statement indicating the distinctive numbers of shares issued to each Indian promoter and Investors in respect of share capital of the applicant
   • An affidavit by the managing director, chief executive officer or whole-time director of the Indian promoters and the foreign investors of the applicant certifying that the holding of foreign paid up equity capital, referred to in sub-clause (b) of clause (7A) of Section 2 of the Act, is calculated in accordance with Indian Insurance Companies (Foreign Investment) Rules, 2015 read with Regulation 11 of these Regulations and does not exceed forty nine percent of the total paid-up equity capital of the applicant company:
   • In case of there being foreign investment in the applicant, an affidavit by the managing director, chief executive officer or whole-time directors and the Indian promoters and Foreign Investors of the applicant certifying that the company is “Indian owned and controlled” as per clause (b) of sub-section (7A) of the section 2 of the Act read with Indian Insurance Companies (foreign Investment) Rules, 2015 and Guidelines issued by the Authority on “Indian Owned and Controlled” as amended from time to time;
   • Where the foreign direct investment is more than 26 percent, a certified copy of the approval given by FIPB in accordance with Indian Insurance Companies (Foreign Investment) Rules, 2015;
   • A certified copy of the published prospectus, if any
   • A certified copy of the standard forms of the insurer and statements of the assured rates, advantages, terms and conditions to be offered in connection with insurance policies together with a certificate by an actuary in case of life insurance business that such rates, advantages, terms and conditions are workable and sound;
   • A certified copy of the Memorandum of Understanding or Management Agreement or Shareholders Agreement or Voting Rights Agreements or any other agreements in whatsoever form entered into between the Indian promoters and the foreign investors, if any, or amongst the promoters as a whole including details of the support / comfort letters exchanged between the parties;
   • Proof in support of payment of the non-refundable fee of rupees five lakh.
   • A certificate from a practicing chartered accountant or a practicing company secretary certifying that all the requirements relating to registration fees, equity share capital, and other requirements of the Act have been complied with by the applicant;
   • Any other information required by the Authority during the processing of the application for registration
3. While considering the application the following areas are also examined i.e.
   • The nature of insurance products;
   • The level of actuarial, accounting and other professional expertise within the management of the applicant company;
   • The organisation structure of the applicant to carry on all functions in respect of the insurance business including management of the investments within its own organisations;
   • All other relevant matters for carrying out the provisions of the Act
4. During process of R-2 application, IRDAI raises queries, asks for clarifications/documents if required. The application and submissions made by the applicant are examined from all angles including by respective Depts. After receipt of satisfactory notes from various departments, the R2 application is taken to the Board for approval.
5. Once the Board approves, R2 clearance letter is issued to the applicant along with conditions if any, stipulated by other departments and advise them to make their compliance accordingly for issuance of Certificate of Registration (R3).

1. The applicant then makes its submissions for compliance with the conditions of R-2 and requests for issuance of Certificate of Registration R-3 (CoR).
2. IRDAI examines R-3 request along with the following that-
   • The applicant is eligible, and in its opinion, is likely to meet effectively its obligations imposed under the Act;
   • The financial condition of the promoters, foreign investors and the general character of the management of the applicant are sound;
   • The volume of business likely to be available to, and the capital structure and earning prospects of the applicant will be adequate;
   • The interests of the general public will be served if the certificate is granted to the applicant in respect of the class of insurance business specified in the application; and
   • The applicant has complied with the provisions of sections 2C, 5, 31A and 32A of the Act and has fulfilled all the requirements of these sections applicable to it. may register the applicant as an insurer for the class of business for which the applicant is found suitable and grant the applicant the certificate in Form IRDAI/R3: Provided that the Authority may impose such conditions as may be deemed fit at the time of grant of the Certificate of Registration. The applicant shall be bound by the conditions subject to which the certificate in Form IRDAI/R3 has been issued.
3. IRDAI examines if the submissions at R-3 stage are satisfactory and are in order and after being satisfied, issues the CoR. It may be noted that the Chairman is empowered to issue the CoR and the matter is not required to be placed before the Board for approval.
4. Due diligence in respect of CEO (Designate) if pending is taken up separately while processing application for CEO appointment / remuneration as per Corporate Governance Guidelines, 2016.