Chennai, Dec 1 The proposed amendments to the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act 1999 alters the basic structure of the insurance laws that was derived from the Malhotra Committee on Insurance Reforms, said experts.
Further the proposals bestow the sectoral regulator a huge power taken away from Parliament, experts added.
Scrapping of the statutory Rs 100 crore startup capital for life and general insurance business and Rs 200 crore for reinsurance business, allowing different kinds of insurers including captives, changing the investment provisions are some of the major amendments proposed by the Indian government to the insurance laws.
The government also proposes to allow an insurer distribute other financial products as specified by and subject to regulations and to services related or incidental to insurance business and
"God save the industry and the government," was the cryptic comment of a former official of the Insurance Regulatory and Development Authority of India
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