KMGICL exempted from expenditure limit compliance for 5-years

Insurance regulator IRDAI has granted exemption to Kotak Mahindra General Insurance Company (KMGICL), a new entrant in the sector, from mandatory expenditure management limit for five years till 2020-21.

The insurer commenced its operations during the financial year 2015-16.

It had applied to the IRDAI through General Insurance Council seeking exemption from complying with limit of expenses of management stipulated under the Insurance Act, 1938.

After considering the application, the Executive Committee of the General Insurance Council had recommended to the Insurance Development and Regulatory Authority of India (IRDAI) for granting the exemption.

"...after careful consideration of the application of KMGICL and the recommendations of the General Insurance Council...hereby grants exemption to KMGICL from complying with the limits of expenses of management stipulated," IRDAI said in a order.

The exemption will be valid for financial years 2016-17 to 2020-21 in addition to the first partial financial year of 2015-16, during which the company commenced operations.

There are 29 general insurance companies, including four owned by the government.