For the governance of the insurance sector, regulatory authority is established. It is called the Insurance Regulatory and Development Authority. It is a statutory body that plays a crucial role in governing the insurance sector, its main objective is to frame the rules and regulations for the insurance company and to keep a check on the workings of the insurance company. The main purpose of Insurance firms’ is to uphold the resources and invest the same somewhere else. Companies that work under the insurance industry have to follow the mind-boggling economic patterns. Reporting, however, is the basic requirement that the authorities ask for from the companies. To fulfill the objective of transparency and accountability, IRDA Compliance for insurance companies is essential. To ensure better governance of the organization, they are obliged to submit their details.

The company that is willing to conduct the business of insurance must be registered as a company under the companies act.

The insurance company must be registered as a public company with the Companies Act 2013.

The company is required to be compliant with the Insurance Act and Insurance Laws for being registered with the IRDAI and should have the minimum capital requirements.

1. Requirements for an Insurance Company- 100 Crores (minimum capital amount)
2. Requirements for Reinsurance Company- 200 Crores (minimum capital amount)

There are various IRDA compliance for insurance companies that have to be followed by an insurance company.

• Establishment of an Insurance Company and Corporate Governance Norms.
• The company must be registered as a public company with the CA 2013 or previous company law.
• Companies should file resolutions to the Ministry of Corporate Affairs, declare from directors, appoint directors and auditors, and do annual filings.
• Insurance companies registered under this Act are liable to file various board resolutions regarding topics such as appointment or resignation of directors, appointment of auditors, issues related to shares, etc. with the ROC.
• There is exemption from the insurance company from the filing of the balance sheet in XBRL. The annual return that they file in AOC-4, and MGT-7 must be filed within 60 days of the AGM (Annual General Meeting)
• Another provision that the IRDAI has issued for the insurance companies is Corporate Governance Guidelines. It is mandatory for the company to follow the regulations and also should strictly abide by the rules given in these guidelines while the formation of the committees.
• In E-Commerce there is internet Compliance for Insurance Companies.
• An independent ISNP (Insurance Self Network Platform) has to be set up by the applicant.
• Permission is required from the authority before setting up such a platform.
• To set up an internet e-commerce platform in India, application is required to be made in Form-ISNP-1 to conduct e-Commerce activities.
• The applicant is required to pay a fee of Rs.10,000
• The applicant has to fill in the required details, and the authority will return it back within 15 days.
• The authority would allow and permit to secure the license.
• Conditions that are kept by the authority before giving permission.
• Consideration of the interests of the policyholders will be taken into account.
• The authority would look at the prospects of internet-based insurance functions prior to granting permission.
• There should be no breaching of the guidelines by the company that is issued by the authority.
• No violations by the applicant regarding the provisions of the IRDA Act, 1999, Insurance Act, 1938, Regulations Guidelines, insurance Rules, orders, notices, circulars, etc. issued by the authority.
• The company must Comply with Insurance Regulatory and Development Authority / Audit.

A business that is established in India has to fulfill a particular set of compliance, filings, and returns as written under the provisions of various tax and corporate laws. In easier terms, compliance means abiding by rules and orders applicable to the entity. Every entity is governed by a certain law and order and that business or firm needs to follow the rule and regulations written in it. The scope and consequences of the company’s relevant laws and regulations must be considered by the management and executive board. There should be a compliance management system that functions as a supporting risk management program, as it can minimize the enforcement risk.

In Annual compliance a specific set of compliance that a company has to fulfill after being incorporated so that it can start and continue its operations. If Non-complied with such compliance it may result in striking off of the company’s name and disqualification of the directors of that particular company.