The Bill proposes to amend the Insurance Act, 1938 and the Insurance Regulatory and Development Authority (IRDA) Act, 1999.
The amendment is proposed to include a new clause allowing insurers to sell other financial products related to their insurance business.
The Cabinet of the Union may soon consider a draft law on amendments to insurance laws for 2022, Kazinform reports. The Bill proposes to amend the Insurance Act, 1938 and the Insurance Regulatory and Development Authority (IRDA) Act, 1999.
The proposed amendments to the Acts are unlikely to make significant changes and the Cabinet is likely to consider the amendments at its next meeting, CNBC-TV18 reported citing sources.
Under the amendment bill, the government proposes to waive the minimum capital requirement for life and non-life insurance companies, the report added.
In November last year, the government proposed several amendments to the two Acts related to the insurance sector after consultation with IRDA and sought comments from the public as well as stakeholders to prepare the final draft of the Amendment Bill.
The Insurance Act of 1938 may be amended to allow insurers to offer various related services to customers. For example, those who buy health insurance can get a gym membership, and those who buy car insurance can also get car maintenance services.
The Insurance Laws Amendment Bill 2022 proposes to allow composite licenses for insurance companies, meaning insurers can offer both life and non-life plans to customers. After the amended laws come into force, insurance companies may be allowed to sell other financial products or services related to or in addition to their insurance business.
The government has proposed sweeping changes to the Insurance Act, 1938 and the IRDA Act, 1999 that could transform the insurance sector in the country. The government may do away with the requirement of a minimum capitalization of Rs 100 crore, replacing it with a specification made by IRDAI based on scope and scale of operations, class or sub-class of insurance company and category of insurance plans.
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