(i)Reinsurance arrangements of GIC and its subsidiaries are reviewed annually and approved by the GIC Board. Remittances falling due under approved reinsurance arrangements may be made by authorised dealers designated by GIC in accordance with the terms and conditions laid down by the GIC Board. A copy of the application received from GIC and its subsidiaries giving full particulars of the remittance to be made including particulars of remittances already made for the year in question should be forwarded to Reserve Bank alongwith form A 2. Authorised dealers should also specifically confirm on form A 2 that the relative documentary evidence in original has been verified by them.

(ii)Applications for remittance of reinsurance premia received from local brokers of insurance companies should, however, be referred to Reserve Bank for approval.