The expert committee on remuneration system for insurance brokers, agents in general insurance business has mooted a separate implementation cell or a standing committee on procedures and performance review of insurers, brokers and agents within the Insurance Regulatory Development Authority. The proposed panel will identify regulations that each stakeholder has to observe and assist each in their compliance. | The expert committee, chaired by A C Mukherjee, has also recommended that there should be a periodic annual check to verify the extent to which the regulations made are complied by each stakeholder. |
| "Implementation of regulations already on the books is a precursor to making more regulations to guide the market conduct of stakeholders. Compliance requires skilled, knowledgeable and competent staff to enforce regulations. At the same time, building a large bureaucracy is to be avoided, as that will slow down the process of effective implementation," the report said. |
| It is also recommended that outsourcing assistance in this connection may be considered. This would enable the Irda to locate organisations with the right expertise and experience for the tasks on hand and obtain reports within a timeframe. This will also add credibility to the image of Irda for its fairness, equity and a lack of bias. |
| The panel has also said that confidentiality agreements can be drawn up to ensure confidentiality of information shared with outside experts. "Outsourcing has become a common management tool to solve modern day issues. This practice is gaining greater acceptance internationally," it recommended. |
| "Any breach of provisions reported from whatever source, should be investigated, if necessary, with the assistance of an outsourced mechanism for factual verification and reporting within a specified period. The scrutiny of books of accounts and individual questioning on the complaints received should be permitted," the report recommended. |
| Irda is entrusted under the Irda Act with the responsibility of development of the insurance industry. |
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