To,

All the Insurers,

Dear Sir,
           
At present, the in-principle approval of IRDA to insurers in respect of opening of new places of business do not prescribe a time limit for the actual opening of offices. It has been observed that some of the insurance companies take an unduly long time to open new places of business after obtaining the sanction for the same from the Authority, defeating the objective of expeditious opening of branch offices to provide better reach to the customer. It has therefore been decided that effective from 1st January 01, 2006, new places of business should be opened within a period of one year from the date of approval letter from the Authority and after the expiry of the time limit, insurers have to apply afresh.

2. Insurers are advised to review the existing position in respect of the branches/offices where in-principle approval of IRDA has been granted but the offices have not been opened for more than one year thereafter and furnish us the full details.

3. Insurers shall also intimate to IRDA henceforth, the date of opening of the approved branch office, within 15 days of its opening.


Yours faithfully,


(C. R. Muralidharan)
Member