Long Overdue

It cannot be gainsaid that the Government, due to its mismanagement, had to eat humble pie by withdrawing the Insurance Regulatory Authority (IRA) Bill from Parliament because of fierce opposition from political parties. Insurance reforms are long overdue but the Government must see that the MNCs or foreign insurance companies do not over-shadow the Indian companies, by restricting the insurance sector for competition amongst the Indian companies only. If, however, the Indian companies are permitted to take the MNCs or foreign investors as partners, then the total foreign investment must be limited to 25 per cent of the total investment in the insurance sector, whether life or general, so that there is a competition in the insurance sector, on the one hand, and the fear of the foreign companies' domination in the insurance field is eliminated, on the other.

It is hoped that the IRA Bill along with the other connected acts regarding LIC & GIC will be amended suitably through a consensus on insurance reforms so as to ensure a fair deal to the consumers. The need of a strong and powerful Insurance Regulatory Authority cannot be over-emphasised. However, the government has to act with alacrity and manage its affairs well by doing its home work in time.