On Wednesday, the department of financial services, through an office memorandum has asked for public comments on the proposed amendments by December 15
The proposed amendments primarily focus on enhancing the financial security of the policy holders, promoting policy holders’ interests, improving returns to the policyholders, facilitating entry of more players in insurance market leading to economic growth and employment generation, enhancing efficiencies of the insurance industry operational as well as financial and enabling ease of doing business, explained the DFS
New Delhi:
Even as the government is gearing up to amend The Insurance Act,1938 and The IRDA Act, 1999, for overhauling the Indian insurance sector, it is now clear it will not happen in the coming Winter session of the Parliament which will be held from December 7 to 29.
On Wednesday, the department of financial services, through an office memorandum has asked for public comments on the proposed amendments by December 15.
In view of changing needs of the insurance sector, a comprehensive review of the legislative framework governing the sector has been done in consultation with IRDAI and industry, said the DFS note.
A number of suggestions have been received to enhance insurance penetration, improve efficiency, and enable products innovation and diversification, added the DFS.
The proposed amendments primarily focus on enhancing the financial security of the policy holders, promoting policy holders’ interests, improving returns to the policyholders, facilitating entry of more players in insurance market leading to economic growth and employment generation, enhancing efficiencies of the insurance industry operational as well as financial and enabling ease of doing business, explained the DFS.
“The proposal includes various measures such as opening up registration to various classes, sub-classes and types of insurers with appropriate minimum capital requirements as specified by IRDAI, allowing services to insurers that are incidental or related to insurance business as well as distribution of other financial products as specified by IRDAI, enabling newer channels of distribution, providing for efficient use of capital and resources,’’ highlighted the DFS.
Comments onthe proposed amendments can be sent on e-mail `consultation-dfs@gov.in’.
Analysts further point out that amendments to any existing Act can be a long drawn process and involves many stages of approvals including the Union Cabinet before it is introduced in the Parliament.
Either house of the Parliament while taking up the amendments for discussion can send them to a Standing Committee for further scrutiny.
In 2014, while considering the amendment in the IRDA Act 1999 for increasing the FDI limit in the insurance sector from 26 per cent to 49 per cent, the then finance minister Arun Jaitley, after being demanded by the Congress led opposition parties, had referred the Bill to a 15 member Select Committee of the Rajya Sabha headed by BJP MP Chandan Mitra.