Question
Under the Insurance Act, 1938 , which of the following
is the minimum paid-up capital requirement for a company to carry out life or general insurance business in India?Solution
As per the amended provisions of the Insurance Act, 1938 (read with IRDAI regulations), the minimum paid-up equity capital required for: · Life insurance, · General insurance, or · Standalone health insurance business is ₹100 crore. For reinsurance businesses , the requirement is higher— ₹200 crore. This financial threshold ensures only companies with sound capital backing are allowed to operate in the insurance sector, safeguarding policyholder interests.
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Y= AB+A(B+C)+B(B+C)
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