Irda amends rules to redefine meaning of 'infrastructure facility'
The Insurance Regulatory and Development Authority (Irda) has expanded the definition of ‘infrastructure facility’ under its Registration of Indian Insurance Companies Regulations. In a gazette notification, the insurance regulator made an amendment to the regulation wherein the term ‘infrastructure facility’ will be replaced by ‘harmonised master list of infrastructure sub-sectors’, as specified by the department of economic affairs, ministry of finance .
Insurance companies, both life and non-life, are mandated to invest a certain percentage in infrastructure. To enable them in this endeavour, Irda has specified a list of ‘infrastructure facility’ for insurance firms to invest in.
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According to Section 2 (h) of Irda Registration of Indian Insurance Companies Regulations, 2000, infrastructure facility includes highways, bridges, airports, ports, railways, road transport systems, water supply projects, irrigation projects, industrial parks, water treatment systems and solid waste management systems. It also includes sanitation and sewage systems, generation, distribution or transmission of power, telecommunications and housing projects.
Insurance companies says this has expanded their investment horizon and will enable them to invest in new categories of infrastructure.