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    Views sought on proposed changes to Insurance Act

    Synopsis

    The finance ministry noted that this is being done in view of the changing needs of the insurance sector, and the comptehensive review of the legislative framewotk goveming the sector has been done in consultation with IRDA and the industry. "

    Views sought on proposed changes to Insurance ActETBFSI
    India is proposing to remove the minimum Rs 100 crore paid up equity capital requirements for carrying out life, general and health insurance business in the country as part of a significant revamp of its insurance framework.

    The finance ministry Wednesday invited comments on proposed amendments to the Insurance Act, 1938 and Insurance Regulatory and Development Authority Act, 1999.

    "The proposed amendments primarily focus on enhancing the financial security of the policyholders, promoting policyholders' interests, improving returns to the policyholders, facilitating entry of more players in insurance market leading to economic gowth and employment generation," the finance ministry noted while seeking comments from all stakeholders.

    It further noted that the aim is to enhance efficiencies of the insurance industry - operational as well as financial and enabling ease of doing business. One of the proposed amendments is that insurer shall commence or carry on any class or sub-class of insurance business unless it has such minimum paid up equity capital as may be specified by regulations considering the size and scale of operations, class or sub-class of insurance business and the category or type of insurer.

    "The proposal includes various measures such as opening up registration to various classes, sub-classes and types of insurers with appropriate minimum capital requirements as specified by IRDAI," it said noting that the last date for sending comments is December 15.

    The finance ministry noted that this is being done in view of the changing needs of the insurance sector, and the comptehensive review of the legislative framewotk goveming the sector has been done in consultation with IRDA and the industry. "A number of suggestions have been received to enhance insurance penetration, improve efficiency, and enable product innovation and diversification," it noted.




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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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