IRDA to make suggestions on insurance bill
IRDA to make suggestions on insurance bill, With a view to improve the insurance administration, The Insurance Regulatory Development Authority (IRDA) is considering to incorporate the new dimensions carried out in the insurance sector.
Hyderabad: With a view to improve the insurance administration, The Insurance Regulatory Development Authority (IRDA) is considering to incorporate the new dimensions carried out in the insurance sector, especially in terms of technology advancements to incorporate in the proposed new Insurance Act.
IRDA chairman T S Vijayan told the media on Friday that he would make suggestion to the Select Committee on moderinsing the insurance bill as the existing bill was drafted about 8 years ago. The bill should cover the recent developments like health insurance as part of non-life and e-commerce, Vijayan said.
"We have a number of suggestions and would be placing them before the Select Committee (Parliament). What the IRDA opinion is, it is better that latest changes in technology, is also coming into the bill," Vijayan said.
He was speaking to reporters on the sidelines of a conference organised by industry body Assocham on 'Digitisation and Enhanced FDI in Insurance – The Road Ahead'. IRDA chairman felt, there is a clear understanding about life and non-life and health, which was not there during 2006. Health companies have started working and now we have experience in the health sphere, e-commerce has come. Some of the things have to find place in the bill itself.
On the infusion of fresh capital, Vijayan said that the insurance authority opine that the insurance sector require capital infusion and it will be strengthened, and if the foreign capital is increased, it will be easier flow of capital, however, quickly he points that he is not promoting FDI.
On digitalisation, Vijayan said, it is currently being done on a pilot basis and the matter would be reviewed once it is over. "We have licensed five repositories and have asked all the companies to digitise a minimum of 5,000 policies and see whether there is a process problem. The pilot basis is expected to be over by end of this month. Once the pilot is over, we will review it, (and see) whether there are any project problems and try to solve it," he said. The digitalisation began with life insurance and it will extend to general insurance gradually, he added.
