Will there be another lobby body for composite insurers or one company will have to be a member of both the Councils paying handsome annual subscription fees?
These were the questions a senior industry official posed citing the amendments proposed to the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act 1999.
As part of the changes in the insurance law, the Indian government has proposed to reconstitute the two Councils to include government representatives in each lobby body, seven elected representatives and two eminent persons.
The government has also proposed to remove the recommendatory powers of the Life and General Insurance Councils.
The government has also proposed to expand the scope of the General Insurance Council to include health and reinsurance business as well, a senior life insurance industry official told IANS preferring anonymity.
“When there is going to be a composite insurance company, then there need be only one body with two wings – life and general,” a senior industry official told IANS preferring anonymity.
The official said in foreign countries there is only one composite body.
Forming another Council for the composite insurers will be creating a post retirement opportunity for industry or even government officials, the official added.
The official said the government can redraw the proposed amendment relating to the two Councils in line with the composite insurance plans.
–IANS
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