IRDAI Suggests Changes In Pay Norms Of Private Insurers' Heads

IRDAI has proposed changes in guidelines on remuneration of non-executive directors, MDs, CEOs and whole-time directors of private insurance entities

Insurance sector regulator Insurance Regulatory and Development Authority of India (IRDAI) on Monday proposed modifications in the guidelines on remuneration of non-executive directors, managing directors, CEOs and whole-time directors of private insurance companies with a view to check excessive risk taking behaviour of top executives.

As per the proposed guidelines, the remuneration of chief executive, managing directors and whole time directors will be divided between fixed pay, perquisites and variable pay.

Also, the fixed pay should be reasonable and all the fixed items, including perquisites, should be treated as part of fixed pay, as per IRDAI's exposure draft.

The regulatory has sought comments on the exposure draft of 'Guidelines on Remuneration of Non-Executive Directors and Managing Director, Chief Executive Officer, Whole-time Directors of Insurance companies' by January 19.