Which one of the following conditions is not true as per the IRDA Act, 1999, for entry of private players into the insurance market?

Correct option is C

The IRDA Act, 1999, specifies the minimum paid-up equity capital requirements for different insurance businesses. The conditions listed are:
· (a) The company's sole purpose must be to carry on life insurance, general insurance, or reinsurance. This is a valid condition.
· (b) The minimum paid-up equity capital for life and general insurance businesses is indeed Rs. 100 crore.
· (c) For reinsurance business, the minimum capital requirement is Rs. 200 crore, not Rs. 300 crore. Hence, this is not true.
· (d) Insurance companies must invest a minimum of 15% of their funds in infrastructure and social sectors, which is a valid condition as per IRDA regulations.

Information Booster
1. The IRDA Act, 1999 governs the insurance sector in India and establishes rules for the entry of private players.
2. The paid-up equity capital requirements ensure that insurance companies have sufficient financial strength to operate effectively.
3. For life and general insurance businesses, the required paid-up capital is Rs. 100 crore.
4. For reinsurance business, the required capital is Rs. 200 crore, making option (c) incorrect.
5. Insurance companies are required to invest 15% of their funds in infrastructure and social sectors to promote national development.