Insurance sector Current Affairs - 2019

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Government appoints Subhash Chandra Khuntia as new chairman of IRDAI

The Appointments Committee of Cabinet (ACC) has appointed former chief secretary of Karnataka, Subhash Chandra Khuntia as new chairman of Insurance Regulatory and Development Authority of India (IRDAI). He will succeed TS Vijayan whose five-year term ended in February 2018. He will have tenure of period of three years from the date of joining. Subhash Chandra Khuntia is 1981-cadre IAS official from Karnataka,

Insurance Regulatory and Development Authority of India (IRDAI)

IRDA is an apex statutory body that regulates and develops insurance industry in India. It was constituted as per provisions of Insurance Regulatory and Development Authority Act, 1999. Its headquarter is in Hyderabad.

Functions of IRDA

  • Protect the rights of insurance policy holders.
  • Provide registration certification to life insurance companies
  • Renew, modify, cancel or suspend this registration certificate as and when appropriate; promote efficiency in conduct of insurance business
  • Promote and regulate professional organisations connected with insurance and reinsurance business; regulate investment of funds by insurance companies
  • Adjudication of disputes between insurers and intermediaries or insurance intermediaries.

Government launches Sampoorna Bima Gram Yojana

The Union Government has launched Sampoorna Bima Gram (SBG) Yojana and expanded coverage of Postal Life Insurance (PLI) in a bid to provide affordable life insurance services to people particularly those living in rural areas. Witt expnasion, PLI will now cover professionals also apart from government employees.

Sampoorna Bima Gram (SBG) Yojana

Under SBG Yojana, at least one village (having a minimum of 100 households) will be identified in each of revenue districts of country to cover all households of identified village with minimum of one RPLI (Rural Postal Life Insurance) policy each. Coverage of all households in identified village under Saansad Adarsh Gram Yojana is primary objective of this scheme.

Expansion of PLI

With expansion of PLI, benefits of PLI will no more be confined to government and semi-government employees only, but will also be available to professionals such as doctors, engineers, management consultants, chartered accountants, architects, lawyers, bankers etc. and to employees of listed companies of NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). It will enlarge cover of social security and bring maximum number of people under protection of PLI.

Postal Life Insurance (PLI)

PLI was introduced in 1884. It is one of oldest life insurance schemes for benefit of government and semi-government employees. It covers employees of Central and state governments, Central and state public sector undertakings (PSUs), universities, government-aided educational institutions, nationalized banks, local bodies, autonomous bodies, joint ventures having a minimum of 10% Government/PSU stakes societies etc. It also extends facility of insurance to officers and staff of Defence services and para-military forces. It also manages group insurance scheme for extra departmental employees (Gramin Dak Sevaks) of Department of Posts.

PLI offers 6 types of plans viz. Whole Life Assurance (SURAKSHA), Convertible Whole Life Assurance (SUVIDHA), Endowment Assurance (SANTOSH), Anticipated Endowment Assurance (SUMANGAL), Joint Life Assurance (YUGAL SURAKSHA) and Children Policy (BAL JEEVAN BIMA). In all policies age limit is 19 to 55 years. Low premium and high bonus is unique feature of PLI scheme.