From the legislative point of of view, enacting `Insurance Act 2023’ by repealing `Insurance Act 1938′ will be a simple exercise as its doesn’t involve any major changes
Earlier, the government dropped all its plans to bring in much talked about major reforms in the Indian insurance sector by amending IRDAI Act 1999
New Delhi:
The government is now mostly ready to table the `Insurance Bill 2023’ in the forthcoming session of the Parliament for replacing the `Insurance Act 1938’.
The `Insurance Act 1938’ will be repealed after the passage of the `Insurance Bill 2023’ in the Parliament, whose packed monsoon session will be starting from July 20-Aug 11.
The government has already sought approval of the Union Cabinet, headed by Prime minister Narendra Modi, for the move.
From the legislative point of of view, enacting `Insurance Act 2023’ by repealing `Insurance Act 1938′ will be a simple exercise as its doesn’t involve any major changes.
Asia Insurance Post had earlier reported that the government had already dropped its earlier plans to amend the IRDAI Act 1999 that would have ensured major reforms for the Indian insurance sector.
Major reforms proposals like composite license', differential capital', reduction in solvency norms', issuing captive license', change in investment regulations', one-time registration for intermediaries' and `allowing insurers to distribute other financial products’, earlier announced by the government for seeking public comments, have suddenly been shelved for unknown reasons.
Instead, the government sources explained that the government had simply decided to repeal the `Insurance Act 1938’ as it has undergone many changes since its inception and has become cumbersome to understand for common people.
Moreover, the legislative move to replace the `Insurance Act 1938’ with the `Insurance Bill 2023’ is in the line with the government’s ongoing overall exercises involving review of all Pre-Independence Acts from the point of view of their utility and relevance, said sources.
The government now wants that the entire legal code of the country should remain purely Indian and existing laws made by a legislature of the Pre-Constitution era should be replaced with laws made by the legislature which is in place post-independence.
The Union Cabinet earlier had approved another piece of important legislation `Data Protection Bill’ to be tabled during the monsoon session of the Parliament.