Insurance Regulatory and Development Authority

The CEOs of All Insurers

Dear Sir,

Guidelines on Corporate Governance for the Insurance Sector

The Authority had issued the Exposure Draft on Corporate Governance for the Insurance Sector vide Press Release dated May 28, 2009 inviting comments from all stakeholders.

The Authority has received responses from various entities/individuals, which have been compiled along with the Authority’s views thereon. These are placed at Annexure I.

The Guidelines on “Corporate Governance for the Insurance Sector” have now been finalized based on the requisite modifications and are placed at Annexure II. It may be observed that the companies are required to take necessary action to ensure that the compliance of the Guidelines is in place latest from the financial year commencing April 01, 2010. These final guidelines may now be placed before the Boards of the Company along with an action plan towards compliance. A Compliance Report may be furnished to the Authority in due course.

Yours faithfully,

/Sd.-
(C. R. Muralidharan)
Member (F&I)