In the absence of a regular chairman after Debasish Panda ended his three-year term in March ,PK Arora, member, Actuary, IRDAI, will chair the IRDAI board meeting
New Delhi/Hyderabad: Insurance regulator IRDAI will have its next board meet on 14th July and is likely to finalise licenses for some new players along with approval for Rs 4,500 deal by Baba Ramdev’s Patanjali Ayurved to acquire Magma General Insurance.
In the absence of a regular chairman after Debasish Panda ended his three-year term in March,PK Arora, member, Actuary, IRDAI, the senior most functionary in the insurance regulatory body, will chair the meeting. Prashant Kumar Goel, joint secretary, Department of Financial Services is the government nominee in the IRDAI baord.
Though, there are a few licenses. which are ready to be issued, IRDAI seems to have waited for the appointment of a regular chairman to finalise them.
However, the appointment of a new chairman by the government has got delayed for various reasons though names of the contenders, who are in the race for the post, have almost remained the same for the last four months.
They are Giridhar Armane, former Defense Secretary, Ajay Seth, former Finance Secretary, Pankaj Jain, Petroleum Secretary. Of late, the name of M Nagaraju, Secreteray, Financial services, has been added to the list.
In fact, after Panda’s departure, Nagaraju has been regularly meeting insurers and IRDAI officials to discuss key issues and developments of the industry.
Sources informed that the government may announce a name for the chairmanship of IRDAI shortly.
Sources say most likely a new general insurance joint venture-KIWI General Insurance-set up by WestBridge Capital and Neelesh Garg, former MD and CEO of Tata AIG General Insurance, will be receiving its initial license.
This will be the Bengaluru-based private equity firm’s second investment into the insurance sector following its successful part-exit from Star Health Insurance through its IPO in 2021.
WestBridge Capital currently holds around 40 percent in Star Health Insurance and will be having stake of more than 60 per cent in the new joint venture.
To be headquartered in Bengaluru, KIWI General Insurance has appointed Saurav Jaiswal, who is also a promoter of the company, as its CEO and MD and has already started building up its manpower by hiring employees from other other general insurers.
There has been a bit of confusion how WestBridge Capital can be a majority shareholder in both Star Health Insurance and KIWI General Insurance which will have-Health Insurance in common.
Industry is watching how IRDAI is acting on the issue of conflict of interest and issue a license to KIWI General Insurance.
This is also for the first time that the IRDAI is seeking its board approval for granting a R1, initial approval in the licensing, to any player. Normally issuing R1 license has been an administrative decision of IRDAI chairman.
This is also the first time any majority stake holder in a health insurance company will be allowed to float a general insurance company.
Earlier, Anil Ambani promoted Reliance Capital was allowed to set up both – a general insurance company and a health insurance company though the health insurance company was merged with the general insurance company afterwards.
Sumir Chadha Deepak Ramineedi are the common board of directors representing WestBridge Capital in both Star Health Insurance and WestBridge Capital.
Other players, who are waiting for licenses are- a general insurance joint venture among Qatar Insurance Group, Sam Ghosh’s Cosmea Financial Holdings and a few other investors, M Pallonji Group’s general insurance company with True North and other investors.
Quite a lot of prospective players are in a wait and watch mode for the Insurance Amendment Act, which will have a host of incentives for new players, to be tabled in the monsoon session of the Parliament, to apply for their licenses from the IRDAI.
useful information
Why does IRDAI not take punitive action against Star Health for cheating and defrauding the citizens even after holding it’s health policy for ten years. They have been charging more than Rupees one lac for a cover of three lacs. Complaints to IRDAI never get solved as IRDAI acts only like a post office.
Too many players.
Not too many are willing for insurance
Ultimately few will remain
LIC holds
General Insurance subsidiaries will have to brace up
Govt has to allow players to insure foreigners outside India
Insurance has to be expanded to new areas
Hopefully, employment with poor salary will be generated
Poaching will happen
Insurance Intelligence will be employed for sounding or poaching
IRDA should not do only post office job. It does not know that it is a regulatory authority. l can quote incidents. If a policy holder grievance not addressed by an Insurance Company, policy holder will approach IRDA. In fact, it should go through the complaint and if the complaint is genuine and mistake has been committed on insurance side, it should order the insurance company to pay the claim. But now a days IRDA is like a post office. Simply forwarding complaint to Insurance Company and reply to policy holder. It is a waste of paper and office. R Natarajan Coimbatore Tamil Nadu
IRDA is managing claim cases beyond recognition and imagination.
Still Insurance is treated as a last option to choose and more awareness has to be brought in the public and why the lapsed policies amount is lying with companies where the companies are enjoying the money with investing and earning money in crores ,, till the lapsed money is with companies it has to be given with some additional amount till it is lying with the companies
It is welcome move by IRDAI to issue licences for private general insurance companies. I don’t think it is competition but to grab indian market still un- insured public. I wish all the best for upcomming GIC companies.
Surveyor Licenses also pending for approvals, so many new Licenses, modifications and additional department request are pending since so many months.
First of all, so many private insurers are there…….agents private insurance companies fooled do many customer s, promise too much returns. Better to stop private insurers growing like mushrooms, don’t give licenses. Avoid unnecessary task
Very true.. one of my relatives, a sr. Citizen, having policy with star for 5+ yrs has been asked to pay Rs.63, 000 this year while last for the same policy, same benefits – no changes, he had paid 43,000/-. He is running pillar to post , calling agents , DM etc of Star but of no avail.
IRDAI has no protocol SOP(standard operating procejures)for an effective customer grievance redressal system. It needs to exercise it’s punitive regulatory powers. It needs to import senior talents from other regulators like RBI. .