Irdai sets up 3 committees to review regulations in insurance
In a row of recently passed Insurance Act, the Insurance Regulatory and Development Authority of India (IRDAI) have constituted three committees for review of regulations in insurance sector.
These three committees are formulated to regulate Insurance sector in areas of life insurance, general insurance and re-insurance that also includes registration of foreign offices of reinsurers.
Ever since the Insurance Act has been approved there was a need to review and revise existing regulations in insurance sector, these committees are the formed to fulfil the same motive.
The life insurance committee will specifically work for the regulations in areas like liabilities, assets and solvency margin and appointed actuary.
The general insurance committee will specifically work for the regulations in areas like claim reserving and appointed actuary.
Reinsurance committee will specifically work for the regulations on the issues relating to registration of branches of foreign reinsurers among others.
These committees mandatorily have to submit report within one month to the Member-Actuary of IRDAI.
The Insurance Laws (Amendment) Bill 2015 passed in March, paved the way for major reform related amendments in the Insurance Laws. This amendment was done with motive to remove outdated and redundant provisions in the legislations and to provide Insurance Regulatory and Development Authority of India (IRDAI) flexibility to discharge its functions more effectively and efficiently. On line of reforms it enhanced the foreign investment cap in an Indian Insurance Company from 26% to an explicitly composite limit of 49% with the safeguard of Indian ownership and control.