IRDAI’s Remuneration Guidelines for Insurer’s NEDs and KMPs

On 30 June 2023, the IRDAI issued the “Guidelines on Remuneration of Non-Executive Directors and Key Managerial Persons of Insurers” (“Remuneration Guidelines”) for private sector Insurers (other than branch of foreign reinsurers), which expressly replace and supersede the IRDAI (Remuneration of Non-Executive Directors of Private Sector Insurers) Guidelines 2016 and the IRDAI (Remuneration of Chief Executive Officer/ Whole-time Director/ Managing Director of Insurers) Guidelines 2016, both issued on 5 August 2016 (collectively, “Erstwhile Guidelines”).

The Remuneration Guidelines follow the same structure as proposed in the IRDAI’s exposure draft of 3 May 2023, and provide separate guidance in relation to an Insurer’s:
(i) Non-Executive Directors[1] , and (ii) Key Managerial Persons[2] by way of 2 separate annexures.

Key Changes
The primary changes under the Remuneration Guidelines are as follows: Read more