Combined licenses that allow insurers to underwrite general insurance and health insurance through a single entity have been a major industry demand.
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“Our aim is to bring the bill to the budget meeting. A senior official in the know said.
Last week, the Treasury Department requested comments on proposed amendments to the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act 1999. It will facilitate the entry of more players into the insurance market, leading to economic growth and job creation,” the ministry said, seeking comments from all stakeholders. The deadline for submitting comments is December. It’s the 15th.
Another official said the proposed amendments came after extensive consultations with industry and regulators, so no delays are expected. approval is in place, which could then be announced and approved during the budget session,” he said.
As part of a major reform of the insurance framework, the bill proposes to remove the minimum paid-up capital requirement of Rs 100 crore to carry on life insurance, non-life insurance and health insurance business.
Asking for comment, the ministry noted that the aim is to improve the efficiency of the insurance industry. “The proposal includes a range of measures, including opening registration to different classes, subclasses and types of insurers with appropriate minimum capital requirements as specified by (sector regulator) Irdai. ‘ said.
This is being done in view of the changing needs of the insurance sector, the ministry said. A review of the legal framework governing the sector has been undertaken in consultation with India’s Insurance Regulatory and Development Authority and industry, it said.
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