Insurance industry flags concerns over proposed Insurance Amendment Bill

The insurance industry is trying to get to grips with provisions in the Insurance Amendment Bill, which gives additional powers to the Insurance Regulatory and Development Authority of India, while there is ambiguity in the very definition of the insurance business, according to industry experts. Shivangi Sharma Talwar, Partner at JSA, said “The bill strengthens IRDAI’S regulatory framework and, in specified circumstances empowers it to issue regulations without publishing draft regulations, when required in the public interest. It also exclusively authorises IRDAI to prescribe limits on commissions for agents and insurance intermediaries and to frame regulations for the amalgamation of insurance and non-insurance businesses. In addition, it enhances increasing oversight by increasing penalties from Rs. 1 cr. To Rs. 10 cr. with the objective of creating an enabling yet protectionist environment. Read more