Mumbai, Oct. 1: The Insurance Regulatory and Development Authority of India (IRDAI) will issue corporate governance norms this month to settle any ambiguity in management control in the wake of the new foreign investment norms.

This was disclosed by T.S. Vijayan, chairman of the IRDAI, here today. Vijayan was speaking to reporters on the sidelines of an event.

The recent government decision to raise the limit of foreign investment in insurance to 49 per cent has opened up questions of control, which the regulator wants to address.

A clause in the revised FDI norms that says ownership and control must be with resident Indian entities has led to the ambiguity.

Vijayan added that the regulator would also announce regulation and entry norms for reinsurance companies later this month. It is expected that close to seven foreign companies may open their branches in the country.

Following the passing of the Insurance Laws (Amendment) Bill 2015, foreign reinsurers can open branches in the country after obtaining licences from the IRDAI. At present, GIC Re is the only domestic reinsurer in India.

The IRDAI chief further pointed out that it was also regulating the management expenses of insurance companies and would propose a price revision based on the claims ratio.

"By April 1, 2016 some sanity will come in our industry," he said, while stressing on the need for claims to be settled on time.

The IRDAI is also digitising its database to track insurance agents. The sale of a policy will be mapped digitally and in the event of a complaint, the agent can be traced.