Irdai Carrying Out Series Of Reforms For Ease Of Doing Business: Minister
The insurance regulator is carrying out a series of efficiency reforms to promote ease of doing business among insurance companies, Minister of State for Finance Bhagwat Karad has said in a written reply in the Lok Sabha.
This was in response to a question on whether the Insurance Regulatory and Development Authority of India (Irdai) is rationalising the existing framework and reducing compliance burden on regulated entities to support their growth.
The minister said Irdai had formed several working groups that had been tasked with making a comprehensive review of the existing regulations under the aegis of Life Insurance Council and General Insurance Council, respectively.
Irdai has also developed a mechanism to process applications filed for registration of new insurers and for grant of certificate of registration to commence the insurance business in India.
As a result of the new mechanism, many entities, including Canadian billionaire Prem Watsa’s Fairfax group and Kamlesh Goyal, who are the promoters of general insurance company Go Digit General Insurance, have applied for licence to set up new insurance companies.
The regulator has permitted “use&file” procedure for a number of product segments across the life and non-life industry. Earlier, the insurers would follow the “file&use” procedure, which would invariably result in delays in product approvals.
They have also introduced new motor insurance add-on covers namely “pay as you drive” and “pay how you drive”, which is expected to make own damage covers cheaper and drive more penetration.
Irdai has relaxed the solvency capital requirement to promote the Pradhan Mantri Jeevan Jyoti Bima Yojana, the flagship government scheme to expand life insurance coverage to the poor and underprivileged.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape
As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more