IRDAI extends D-SII tag of LIC,GIC and New India Insurance

Tags: Economics/Business

• Insurance Regulatory and Development Authority of India (IRDAI) has kept government owned Life Insurance Corporation (LIC), General Insurance Corporation of India (GIC),and New India Insurance as Domestic Systemically Important Insurers (D-SIII) for 2021-22.
• Last year also the same insurance companies were in the D-SIII list.
• D-SIII means that they are so important to the insurance sector in India that if any of these companies fails then it will cause massive problems for the insurance sector as a whole.
• D-SIII means these companies are perceived to be too big or too important to fail.
• These Companies will be subjected to close watch and regulation of the IRDAI.

IRDAI 

• It was set up in 1999
• Its Headquarters is at Hyderabad 
• It is the regulator of the Insurance sector in India.
• It was set up on the recommendation of R.N. Malhotra Committee set up by the government of India in 1993 on the Insurance sector.