Multiple choice

The minimum capital to start a new insurance company in India is

  1. Rs. 100 cr

  2. Rs. 75 cr

  3. Rs. 50 cr

  4. Rs. 10 cr
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A Correct answer
Explanation

Any new life insurance company or non-life insurance company will not be registered unless the company has a paid-up equity capital of a minimum Rs. 100 crores. In the case of a re-insurance company, the minimum paid-up equity capital will have to be Rs. 200 crores (Sec 6 of the Insurance Act, 1938).

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