Regulator IRDAI has issued regulations for insurance firms to carry out offshore business from Gujarat-based GIFT International Financial Services Centre (IFSC). Under the regulations, for the first time in the country, foreign insurers are permitted to open IFSC Insurance Office (IIO) at GIFT IFSC
Insurance operations will get a major boost with Insurance Regulatory and Development Authority of India (IRDAI) issuing enabling regulations for undertaking offshore insurance business from IFSC. Companies would also be allowed to undertake domestic insurance and reinsurance business in line with the provisions of IRDAI regulation.
Firms opening office at GIFT IFSC are permitted a 10-year tax holiday complete tax holiday in first five years and a tax reduction of 50 per cent for the remaining five years. The IRDAI regulations would help Indian insurers to set up their offshore office in GIFT SEZ IFSC to undertake dollar business which otherwise was restricted in India.With the business guidelines in place, we are now hopeful that foreign and domestic insurance companies would participate in making GIFT IFSC a hub for International Insurance business