Ira Bill May Be Passed In Monsoon Session

The insurance watchdog is awaiting the passage of the bill and amendments to the various Insurance Acts. Rangachary said the regulatory authority has finalised the draft regulation in many areas and will publish the regulations once the amendments are effected. Rangachary also provided a sneak preview of the guidelines pertaining to the role of intermediaries in the industry agents, brokers and surveyors. He outlined a road map for restructuring the insurance corporations and suggested that they should consider floating leaner, smaller subsidiaries in association with certain banks, FIs, or new players in the insurance sector to tackle competition.

While Rangachary acknowledged the synergies within the financial sector, he said an arms-length distance must be maintained between the operations of banks, financial institutions and insurance companies.

The IRA bill was introduced in the Lok Sabha last December. It has since been vetted by the Parliamentary standing committee on finance. The standing committee has made its recommendations and suggested some changes, while preserving the independence and authority of the IRA, said Rangachary.

It was initially suggested that the IRA should be composed of one chairman, three full-time members and four part-time members. However, the standing committee has recommended that the structure should consist of one chairman, five full-time members and four part-time members. The members will include experts in the field of general and life insurance and actuaries as well as experts in law and accounts. One member will also represent the interests of policy-holders.

The IRAs annual report will have to be presented to Parliament by December 31 each year. It will analyse the performance of the Indian industry and also comment on the state of the industry, including the development of the intermediaries.