IRDAI Regulations. This policy is subject to IRDAI (Protection of policy holders’ interest) Regulation, 2017 and IRDAI (Health Insurance) Regulations 2016 and Guidelines on Standardisation in health insurance, as amended from time to time.
IRDAI Regulations. (a) The Parties hereby agree that the payment of the Coupon on the relevant Coupon Payment Date shall be subject to the provisions of the IRDAI Regulations and shall be governed by the following conditions, unless otherwise allowed by IRDAI upon request by the Issuer:
(i) the Coupon on the Debentures shall be charged to the profit and loss account of the Issuer and will be paid annually;
(ii) the Issuer shall not be liable to pay the Coupon for any financial year, if the payment of such Coupon is prohibited in terms of IRDAI Regulations including, without limitation, if the Issuer’s solvency is below the minimum regulatory requirements prescribed by IRDAI or the impact of paying such interest would result in the solvency of the Issuer, falling below or remaining below minimum regulatory requirements prescribed by IRDAI;
(iii) where the impact of payment of the Coupon may result in net loss or increase the net loss of the Issuer, the payment of the Coupon shall be made only after procuring prior approval of the IRDAI;
(iv) the Coupon due for payment shall not be cumulative, i.e., Coupon missed in a year shall not be paid in future years. However, the Issuer may be allowed to pay the Coupon amount due and remaining unpaid in the subsequent financial years, provided that the same is paid with in compliance with the provisions of IRDAI Regulations.
(v) Any unpaid Coupon being paid on a future date shall be compounded at the Coupon rate. Provided that, any non-payment of Coupon on the Debentures or the payment of any Coupon in the subsequent Financial Years or the cancellation of servicing of the Debentures by the Issuer in the manner set out hereinabove and as may be prescribed under IRDAI Regulations shall not be construed to be an Event of Default or be construed to be a breach of the Transaction Documents in any manner and no restriction or obligation on the Issuer of any kind whatsoever, including any obligation to pay additional interest, shall be imposed or be deemed to have been imposed on the Issuer upon the occurrence of such an event except that the Issuer shall not distribute any dividend to its equity shareholders.
