Non-life insurance companies cannot save more than three bank accounts in order to deposit premium money. That is, insurance companies can save one account at any of the three different scheduled banks. If a company has already stored more than three bank accounts, additional accounts will have to be closed by July 5.
The Insurance Development and Regulatory Authority (IDRA) recently issued a notification issuing notification to non-life insurance companies. The notification was issued to protect the interests of the insurance customers, to bring good governance to the insurance company and to ensure a strong internal control system.
IDRA says insurance companies can save a bank account to consolidate capital and accumulate other income as needed. On the other hand, a bank account should be kept for payment of claim and management costs.