The Insurance Regulatory and Development Authority of India has issued Insurance Regulatory and Development Authority of India (Remuneration of Non-executive Directors of Private Sector Insurers) Guidelines, 2016. The need to bring in professionalism to the Boards of insurers cannot be overemphasized. In order to enable insurers to attract and retain professional directors it is essential that such directors are appropriately compensated. Accordingly, the Authority has finalised the guidelines on remuneration for non-executive Directors, as under for implementation by the private sector insurers. These guidelines shall be effective from 1st October, 2016 or from the date of appointment/ re-appointment of MD/ CEO/ WTDs and Non-executive Directors, whichever is later.
According to above guidelines, the Board of Directors should formulate and adopt a comprehensive remuneration policy for the non-executive Directors. While formulating the policy, the Board shall ensure compliance with the provision of the Companies Act, 2013. The insurers may pay sitting fees to the non-executive directors and reimburse their expenses for participation in the Board and other meeting, subject to compliance with the provisions of the Companies Act, 2013. Insurers are required to make disclosure in respect of remuneration paid to such directors in their Annual Financial Statements.
The National Company Law Tribunal has prescribed the fee of Rs. 200/- per inspection for inspection of the records as provided under rule 114 of the NCLT rules, 2016. The rule 114 (Inspection of the Records) of NCLT rules, 2016 provides that the parties to any case or their authorised representative may be allowed to inspect the records of the case by making an application in writing to the Registrar and by paying the fee prescribed thereof i.e. Rs. 200/- per inspection.