Tuli & Co | India | 21 May 2019
The Supreme Court recently ruled in a case between Reliance Life Insurance and the wife of an insured party who had died of a heart attack. Reliance had repudiated the respondent's claim due to the suppression of material facts by the insured, who had failed to provide details of a second policy with another insurer. In its decision, the Supreme Court considered the nature of the disclosure......
Tuli & Co | India | 22 May 2018
The Supreme Court recently upheld the validity of a quantum-only arbitration clause and affirmed that once an insurer has denied liability, arbitration is no longer an option (unless the insurer and insured come to an independent agreement to arbitrate). In its decision, the Supreme Court stressed the importance of reviewing an insurer's declinature letter to properly assess whether liability......
Tuli & Co | India | 25 Aug 2015
The Insurance Regulatory Development Authority of India recently issued rules and guidelines for insurers wishing to establish insurance businesses in special economic zones. However, the way in which the guidelines and rules will be implemented, and the enthusiasm with which domestic and global insurance industry players will receive this new means of carrying out insurance business, remain......
Tuli & Co | India | 28 Jul 2015
The insurance regulatory regime has experienced sweeping changes in recent months, but certain aspects are still unclear, including how foreign investment in Indian promoters will be calculated. As such, the insurance industry is eagerly awaiting further clarifications and amendments in order to finalise investment plans and determine how the recent reforms will be applied.
Tuli & Co | India | 10 Mar 2015
In order to implement the Insurance Laws (Amendment) Ordinance 2014, the Ministry of Finance has ratified the Insurance Companies (Foreign Investment) Rules 2015, which provide insurers and insurance intermediaries with much-needed clarity regarding increases in foreign investment. However, further clarifications and amendments are needed and, until then, it may be difficult to implement the......
Tuli & Co | India | 17 Feb 2015
In a recent National Consumer Disputes Redressal Commission case, the insured informed his insurer that his vehicle had been stolen three months after the theft. The insurer repudiated the claim on the grounds that the significant delay in notification was a violation of the insured's policy. The national commission ruled that any delay in notifying the police or an insurer after a vehicle......
Tuli & Co | India | 20 Jan 2015
The long-awaited increase in permitted foreign holdings in an Indian insurance company from 26% to 49% is now law. However, rather than becoming law through the usual legislative process, the reform became law through an unusual and temporary device: an ordinance. This places an unwelcome question mark over the resilience of this otherwise welcome reform.
Tuli & Co | India | 29 Jul 2014
The Allahabad High Court has issued perhaps the sternest order ever issued against an insurer. It directed the insurance industry regulator to examine every policy issued by SBI Life Insurance Company Limited and, if any policy was issued in breach of the file and use procedure and regulations, to discontinue all of SBI Life's policies if appropriate.
Tuli & Co | India | 22 Jul 2014
In the 2014 Budget Speech, the finance minister stated that foreign direct investment in the insurance sector will be raised from 26% to 49% and that the increase will be coupled with "full Indian management and control", meaning that overseas investors will not have significant management rights or controls. The proposal will come into effect once both houses of Parliament pass the Insurance......
Tuli & Co | India | 27 May 2014
The Insurance Regulatory and Development Authority (IRDA) has drafted regulations that permit IRDA-licensed insurance marketing firms to distribute insurance products. If the regulations are finalised in their present form, apart from establishing a new type of distribution channel, the proposed remuneration structure is likely to have far-reaching implications.